ABA TRUST SCHOOLS

Emory Conference Center and Hotel

Atlanta, Georgia

ADVANCED

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ABA ADVANCED TRUST SCHOOL COURSE ABSTRACT

Course Name: Instructor: Trending Topics in Trust Phoebe Papageorgiou Length: 2 hrs Course Description: Discuss recent developments in the legal, regulatory and competitive landscapes affecting the trust industry and fiduciary administration and investment professionals. Course Objectives: To enable students to:

• Explore Industry trends in cannabis, cryptocurrency and bitcoin • Knowledge of the basic terminology and key differentials between digital ledger

technology • How to plan with cryptocurrency asset for wealth transfer planning purposes

Summary of Course Content: • Explore Trending Topics in the Industry

• Federal and State Statutory / Regulatory Developments • Significant Themes in Fiduciary Litigation • Trends in Trust Drafting and Implications for Trust Administration

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ABA ADVANCED TRUST SCHOOL

COURSE ABSTRACT Course Name: Instructor: Advanced Topics in Discretionary Distributions Domingo Such Length: 2.75 hrs Course Description: Students will examine the property law considerations relevant to making discretionary distributions and analyze the income, estate, gift and generation skipping transfer tax consequences of the creation and exercise of discretionary powers authorizing the distribution of income or principal. The session will also cover the investment interplay between the Prudent Investor Rule and the Principal and Income Act of 1997, identify the factors to consider when deciding to exercise a power to adjust, review the benefits and drawbacks of a Unitrust regime and discuss the application of the treasury regulations defining “income.” Course Objectives: To enable students to:

• Explain the reasons discretionary provisions permit a trustee maximum administrative flexibility

• Identify and interpret the standards applied in exercising discretionary powers • List the basic requirements of well-drafted discretionary provisions • Describe the income tax consequences of discretionary powers, including the 5 x 5

power • Describe the estate tax consequences of ascertainable and non-ascertainable powers

to distribute income or principal • Understand how asset allocation and risk affects discretionary powers • Make an informed decision about the power to adjust/unitrust alternative • Solve problems presented in case studies

Summary of Course Content:

• Common Law principles as described in Restatements 2nd and 3rd of Trusts • Relevant Cases from various jurisdictions • Sample drafting language to accomplish testators’ and settlors’ objectives

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ABA ADVANCED TRUST SCHOOL COURSE ABSTRACT

Course Name: Instructor: Special Needs Trusts Kristen Lewis Length: 2 hrs Course Description: This program will review the various types of Special Needs Trusts that serve as the cornerstone for securing the future of beneficiaries challenged by disabilities; the types of government benefits and programs that can be accessed and preserved with proper Special Needs Trust planning and administration; the most common challenges (and solutions) encountered in Special Needs Trust planning and administration; and an update on the status of “ABLE” accounts as a new tool to facilitate Special Needs planning. Course Objectives: At the end of this course students will be able to: • Describe how to assess a client’s need, recognize problems and recommend solutions • Explain how special needs trusts are used to meet client objectives • Explain the importance of administering accounts in such a way as to not disqualify a client

from receiving available government benefits. • Explain ways to deal with family members, caregivers and other concerned parties.

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ABA ADVANCED TRUST SCHOOL COURSE ABSTRACT

Course Name: Instructor: Case Study Work & Review Colin Korzec Length: 2 hrs Course Description: Case based on material presented during the session courses will be assigned to student teams. The teams will be expected to apply concepts and principles addressed in class to these realistic scenarios. The teams should be prepared to discuss their findings and recommendations with the faculty and their peers and defend their suggestions. Course Objectives: To enable students to:

• apply concepts and principles to real-life trust advisory scenarios • identify and accomplish clients’ goals • integrate fiduciary responsibilities with clients’ desired outcomes • demonstrate learning has occurred

Summary of Course Content: Case is expected to cover topics covered in:

• Federal Estate & Gift Taxation • Duties & Powers of the Trustee • Discretionary Distribution • Generation Skipping Tax • Fixed Income Concepts • Charitable Trust Administration • Investment Products • Fiduciary Risk & Litigation • Acceptance & Termination • Estate Planning

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ABA ADVANCED TRUST SCHOOL COURSE ABSTRACT

Course Name: Instructor: Ethics of Trust Administration Steve Goodman Length: 1.75 hrs Course Description: This course is designed to raise awareness of ethical concerns and problems encountered by trust and wealth management professionals in their working environment. The course examines court cases, regulations and real-life examples to explore ethical dilemmas that are likely to develop in the current trust and investment management environment. Class discussions primarily focus on analyzing a variety of situations and developing a reasonable consensus of ways to either avoid them or to resolve them in light of the existing regulatory environment. Course Objectives: At the end of this course students will be able to:

• Describe ethical considerations and methods in a logical, effective manner so that the employer maintains its self-esteem and integrity as well as protection from litigation including; o Chinese wall o Advising both spouses o Advising multiple generations o Soft dollars o Equal treatment of accounts o Insider information o Holding your bank stock in client portfolios o Understand how business ethics are often a reflection of personal ethics

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ABA ADVANCED TRUST SCHOOL

COURSE ABSTRACT Course Name Instructor Trust Risk and Compliance Kent Lytle Length: 2 hrs Course Description: The course consists of an overview of current regulatory expectations regarding risk and compliance. The course will touch upon key laws and regulations governing trust administration, with particular attention to Reg 9, and will identify regulatory guidance and handbooks available as resources. The course will include discussion of elements of building a risk management program including concepts such as: risk pillars, risk appetite statement, key risk indicators, and the three lines of defense. Hot compliance topics will include discussion of: vendor management, model risk validation, report validation, and director education/awareness. Finally, the audit and exam process will be discussed with a specific focus on what a trust administrator, investment officer, or business development officer can do to help ensure successful audit and exam results. Course Objective: To provide students an overall understanding of the regulatory environment in which their trust department operates, and awareness of current regulatory expectations. By the end of the course, students should be able to identify and mitigate risk, and understand how they can contribute to successful audits and exams in their institution. Summary of Course Content: Areas of coverage:

• Regulatory Oversight: Who is your regulator? • Key Regulations and Laws: 12 CFR 9, Uniform Trust Code, Prudent Investor Rule,

Uniform Principal and Income Act, Employee Retirement Income Securities Act (ERISA), Common Trust Fund Act, USA Patriot Act, various state probate and trust codes

• Resources Available: OCC Handbooks and FDIC Manual • Building a Risk Management Program

o Risk Pillars o Risk Appetite Statement o Key Risk Indicators o Three Lines of Defense

• Hot Topics including: o Vendor Management o Model Risk Validation o Report Validation o Director Education and Awareness

• Audit and Examination Process: What you can do to help ensure successful audits and exams.

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ABA ADVANCED TRUST SCHOOL

COURSE ABSTRACT Course Name: Instructors: Advanced Estate Planning Techniques Steve Goodman Length: 2 hrs Course Description: This course will address transfer tax reduction and elimination for clients with large estates through a variety of strategies designed to save gift and estate tax in light of congressional action and litigation developments. Course Objectives: At the end of this course students will be able to: • Explain basic principles of leveraged lifetime gift programs and how they achieve wealth

transfer with tax savings for clients • Analyze the appropriateness of lifetime transfers • Identify areas of likely litigation with various gifting strategies • Explain what devices are appropriate to employ in a leveraged gift program • Compare and contrast the legal status and relative use of different leveraged gift devices

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ABA ADVANCED TRUST SCHOOL COURSE ABSTRACT

Course Name: Instructor: Estate Planning for Retirement Assets Tom Pauloski and Tom Lasley Length: 3 hrs

Course Description: Learn how different beneficiary designations and distribution options for IRAs can affect economic outcomes when coordinated with a client’s overall estate, investment, and tax plan. Course Objectives: To enable the student to (i) understand required minimum distribution rules applicable to IRAs and qualified plan benefits; (ii) explain the economic ramifications of leaving such benefits in different kinds of trusts; (iii) identify estate planning opportunities and potential pitfalls for retirement plan balances; and (iv) explore the pros and cons of Roth conversions and other specialized planning strategies. Additional Information: This course will be taught in a case study format, and will use sophisticated wealth forecasting software to model potential outcomes and highlight key concepts.

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ABA ADVANCED TRUST SCHOOL

COURSE ABSTRACT Course Name: Instructor: Advanced Fiduciary Income Tax Skip Fox Length: 3 hrs Course Description: Students examine the fundamentals of federal income taxation of trusts and estates in a progressive and organized fashion. Course Objectives: At the end of this course students will be able to: • Recognize the differences between grantor and non-grantor trusts • Describe the differences between simple and complex trusts • Explain the concept of the non-grantor trust as a conduit • Define and describe distributable net income • Recognize similarities and distinctions of fiduciaries compared to other taxpayers • Choose among the available post-mortem tax elections and techniques.

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ABA ADVANCED TRUST SCHOOL COURSE ABSTRACT

Course Name: Instructor: Advanced Generation Skipping Tax Tom Abendroth Length: 3 hrs Course Description: This course will focus on planning to minimize or avoid the generation-skipping tax, and how to take maximum advantage of available exemptions. It also will cover proper reporting of gifts that are intended to be GST exempt. Course Objectives: At the end of this course students will be able to: • Describe an overview of the generation-skipping tax and the impact it can have on their

estate plans. • Identify an estate plan or a transfer that fails to take the GST tax into account. • Explain the tax benefits of generation-skipping planning.

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ABA ADVANCED TRUST SCHOOL

COURSE ABSTRACT Course Name: Instructor: Federal Tax Elections Mark Shiller Length: 2 hrs Course Description: The course will provide an overview of post mortem tax elections and disclaimers with a primary emphasis on federal estate tax considerations, reinforcing concepts associated with elections on an estate’s fiduciary income tax return, the decedent’s final income tax return, and generation-skipping transfer tax elections that are taught in other graduate trust school courses. Course Objectives: At the end of this course students will be able to:

• Explain the Federal Estate Elections: Valuation Elections: Alternate Valuation, Special Use Valuation, Marital Deduction Elections: QTIP, QDOT, and Portability Election: Portability/DSUE and Payment Elections: Installment Payment and Deferral of Payment

• Identify and Explain GSTT Elections made on the 706: Allocation of GSTT exemption, Reverse QTIP

• Identify the elections relating to filing the decedent’s final income tax return (filing jointly, decedent’s final medical expenses) and the income tax returns for the decedent’s estate and trusts (fiscal year, election to treat revocable trust as part of estate, deductibility of certain expenses that can be taken on one of multiple returns)

• Understand and explain to clients and prospects the various factors to consider when making post mortem elections

• Recognize planning opportunities associated with disclaimers—for clients and for extended professional team interaction

• Compare, contrast and explain relative advantages and disadvantages of post mortem tax elections and disclaimers

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ABA ADVANCED TRUST SCHOOL

COURSE ABSTRACT Course Name Instructor Practical Application of Investment Concepts Sean McCarthy Length: 2.5 hrs Course Description This course will move the student from the theory of investment management to the practicalities of portfolio design. Topic addressed will include a review of investment theories, behavioral finance, sound investment practices, and addressing specific client constraints. A case study will be involved in the discussion.

Course Objectives Review investment academic history and dive deeply into behavioral finance Be fluent in sound investment practices Review hedging strategies and performance measurement Analyze real world investor case study Summary of Course Content

• Investment Theory History o Modern Portfolio Theory o Capital Asset Pricing Model o Arbitrage Pricing Model o Efficient Frontier

• Behavioral Finance o Heuristics o Frame dependency o Prudent principles of investment management

• Hedging and performance o Concentration risk o Portfolio risk o Total return o Time series return

• Case study o Investment goals o Asset Allocation o Portfolio design

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ABA ADVANCED TRUST SCHOOL COURSE ABSTRACT

Course Name: Instructor: Insurance for Trust Professionals II Judith Pearson Property and Casualty Length: 2 hrs Course Description: Learn how to determine proper coverage needs for personal and real property held in trust or owned individually by clients. Also introduced are liability, casualty, health, disability and long-term care insurance products. Course Objectives: At the end of this course, students will be able to: • Describe the various features of personal property, disability, real property, liability and

health insurances • Determine the amount and type of insurance necessary to manage risk • Select an appropriate insurance company and product • Describe a process for evaluating and comparing different policies

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ABA ADVANCED TRUST SCHOOL COURSE ABSTRACT

Course Name: Instructor: Funding the Marital and Credit Shelter Trust Skip Fox Length: 3 hrs Course Description: Students will first review planning for the effective use of the marital deduction and the applicable exclusion amount. Students will discuss the advantages and disadvantages of portability planning as compared to the use of credit shelter planning. Then, students will be presented with a process for funding the marital and credit shelter trusts if credit shelter trust planning is used. Course Objectives: At the end of this course students will be able to:

• Understand the different types of marital trusts • Know the advantages and disadvantages of portability planning at the first spouse’s

death versus credit shelter trust planning • Define relevant terminology including pecuniary, fractional, formula and non-formula

clauses within wills and trust instruments. • Compare and contrast the features and benefits of the different funding formulas. • Explain the impact of using a particular funding clause on account funding and

administration.

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ABA GRADUATE TRUST SCHOOL

YEAR 2 COURSE ABSTRACT

Course Name: Instructor: Fiduciary Administration III: Making Complex Fiduciary Decisions Steve Parrish Length: 2.5 hrs Course Description: In practice, a trustee must be able to spot issues and potential trouble spots in the ongoing administration of a trust. There is no map linking the particulars of the trust or the circumstances of the beneficiaries to the neat outlines of “Fiduciary Administration I: Risk Management,” “Fiduciary Administration II: State Law and Practice,” or “Advanced Topics in Discretionary Actions.” A trustee must be able to identify issues and then apply the relevant fiduciary rules and practice norms to the facts and circumstances of a given trust, and to do so in real time and on an ongoing basis. Sometimes the answer is clear; in other cases, the trustee has discretion to choose among multiple plausible courses of action. In this session, which is the capstone of the prior fiduciary offerings, we will consider three case studies of trust administration matters involving potentially problematic complex fiduciary decision making. We will undertake to identify the relevant issues and potential trouble spots, to sort out the applicable fiduciary rules and practice norms, and to identify the viable courses of action, weighing their pros and cons. Course Objectives: At the end of this course, students will have deeper experience in:

• spotting issues and potential trouble spots in the ongoing administration of a trust; • sorting among fiduciary rules and practice norms in light of particular facts and

circumstances; • identifying viable courses of action and weighing their pros and cons; • and applying all of these skills in making complex fiduciary decisions.

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ABA ADVANCED TRUST SCHOOL

COURSE ABSTRACT Course Name: Instructor: Ethics: Compromising Principles for Principals Mary Radford Length: 45 mins Course Description: This course is a provocative discussion regarding financial industry ethics. Course Objectives: Attendees will learn how to:

• Identify ethical standards in the financial industry • Understand how different forces impact their ethical decisions • Be an advocate for improving ethical standards in the financial industry • Know how to defend an ethical standard that goes beyond the minimum regulatory

requirements

Summary of Course Content: In this course, we will discuss the current state of affairs regarding ethics in the financial industry. A provocative discussion will analyze what is truly ethical behavior, and how can we apply it to our professional lives. An honest analysis of why the financial industry is so universally hated will encourage the students to develop a better viewpoint of their ethical decisions. We will create a plan for how each of us can improve the ethical behavior of our industry and thus improve our public perception.

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ABA TRUST SCHOOL COURSE ABSTRACT

Course Name: Instructor: Relationship Management TBD Length: 45 Mins Course Description: This session will explore strategies around how client relationship management is a is impacting the financial services industry. Summary of Course Content and Objectives: A high-level dive in which attendees should come away with an understanding of how the following items impact your client relationships:

• Summarizing and documenting the client relationship o Family dynamics and extended relationships of clients o Family tree o Differing beneficial interests o Cash needs vs wants and balancing interests o Overall relationship net worth

• Manage client expectations o Document limitation o Monte Carlo simulations – cash needs and projections o Communication preferences and frequency o Timing of deliverables o Tax reporting o Capacity and role o Behavioral finance

• Evaluate and develop new business o Asset retention policies o Developing relationships with internal/external partners or professionals o Strategies to encourage referrals