Personal Relationships…Professional Solutions Comprehensive Wealth Management Presented By...

Personal Relationships…Professional Solutions

Comprehensive Wealth Management

Presented By

Reliance Trust Company

John A. Rodgers, III


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The Reliance Story

■ Reliance Trust Company

■ Overview

■ Services

■ Products

■ Roles

■ Personal Trust Services

■ Trust Transfer Program

■ Web Site


33

The Reliance Story

■ Reliance Trust Company

■ Overview

■ Services

■ Products

■ Roles

■ Trust Services Offered


■ Web Site


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■ Established

■ Headquartered in Atlanta, GA

■ Licensed trust company

■ Administrator to assets over $43 Billion


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■ Full menu of trust services, including■ Personal trusts

■Family Trusts

■Revocable Trusts

■ Irrevocable Trusts

■Life Insurance Trusts

■Special Needs Trusts

■Charitable Trusts

■Planned Giving Annuity Trusts

■Asset Retention Trust

■ Retirement accounts

■ Wealth management


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■ Agency/Custody services■ Self trustee accounts

■ Third party services (Escrow Accounts)


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Reliance Trust Company’s Role As A Fiduciary

■ Trust Investment Committee (TIC)

■ Meets quarterly

■ Investment reviews ~ Do the investments satisfy the client’s objectives?

■ Initial

■ Annual

■ Trust Administrative Committee (TAC)

■ Meets quarterly

■ Account reviews ~ Is the account administered properly?

■ Initial

■ Annual

Reliance Trust Company is held to the highest level of fiduciary responsibility.


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The Reliance Story

■ Reliance Trust company

■ Overview

■ Services

■ Products

■ Roles



■ Web Site


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Trust Services Offered


■ Basic Estate Planning

■ Living Trusts

■ Charitable Remainder Trusts

■ Life Insurance Trusts


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■ Living Trusts




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Personal Trust Services

What is A Trust?■ A legal arrangement that transfers ownership of an individual’s

assets into a trust held by a third party know as the trustee for the benefit of a named person or persons

■ A trust created in an individual lifetime is an INTERVIVOS TRUST or Living Trust

■ A trust established by a will is a TESTAMENTARY TRUST


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Trust Benefits

■ Certain types of trusts can reduce or minimize federal estate taxation

■ Trusts can avoid the probate process

■ Provide for minor children or individuals with special needs


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How A Trust Is Created

■ Attorney meets with client and creates trust document

■ Trust document is reviewed by trustee

■ Document accepted or declined by trustee

■ Upon acceptance, trust account is established


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Personal Trust services

Parties To A Trust

■The Grantor■ The person who establishes the trust

■The Trustee ■ The person or institution holding property in a trust


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Personal Trust services

Parties To A Trust

■The Beneficiaries

■ The person who or organization who has any present or future beneficial interest, vested or contingent in the assets of a trust

■Fiduciary

■ The person having duty to act primarily for another’s benefit


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■ Living Trusts




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Basic Estate Planning Distribution Of An Estate


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Basic Estate Planning

How to Pay Estate Taxes

■ Cash

■ Sale of Assets

■ Installments

■ Life Insurance


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Basic Estate Planning

Estate Taxes Reduction Techniques

■ Marital Deduction

■ Unified Credit

■ Gifting


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■ Living Trusts




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Living Trusts

Benefits Of A Living Trust

■ Trust (Successor Trustee) Administers Assets After Grantor’s Incapacity

■ Trust Avoids Probate At Grantor’s Death

■ Provides For Management Of Assets After Grantor’s Death

■ Speedy Transfer Upon Death


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Living Trusts

Features Of A Revocable Living Trust

■ Revocable and Amendable

■ Income Taxable To Grantor

■ Assets Included In Estate Of Grantor


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■ Living Trusts




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Charitable Remainder Trust

Definition

■ A Charitable Remainder Trust (CRT) is an Irrevocable Trust

that consists of a gift of property made to a Charitable Trust that

generates a charitable deduction and an income stream for the

donor, and, eventually, a distribution of principal to a qualified

charity.


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When Is A CRT Used?

■ You own highly appreciated assets

■ The assets generate low income yield

■ You wish to endow a charity

■ You are seeking asset diversification greater income yield

■ You are the beneficiary of an over-funded qualified retirement plan


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How A CRT Works■ Donor creates a Charitable Remainder Trust

■ Attorney drafts trust document

■ Donor chooses a Trustee


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Appreciated asset is transferred to CRT

CRT is tax-exempt: No capital gains tax on sale

Trustee sells assets and invests in income-producing assets

Permits diversification, helps to manage risk


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■ Donor receives current charitable deduction

■ Based on fair market value of assets transferred (present value)

■ Can be used to offset 30% of AGI in year of transfer (50% for cash)

■ Any amount unused in 1st year can be carried over for next five years


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■ Donor receives income stream from CRT

■ Based on specific percentages of fair market value of assets in the trust (not less than 5%)

■ Percentage chosen by donor at creation of trust (the higher the income percentage, the lower the deduction)

■ Income is distributed for term of lives or years

■ More principal available to be invested by the trustee compared to sale outside of trust therefore more income to beneficiary


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■ Remainder transferred to charity

• At the termination of the trust, assets remaining in trust are transferred to charity


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■ Income from CRT and tax savings is used to purchase life insurance

through an irrevocable trust, with proceeds distributed to family at

donor’s death (to replace value of assets transferred to CRT)


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■ Living Trusts




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Life Insurance Trust

Features

■ Trustee owns life insurance policy

■ Policy proceed are excluded from estates of grantor and survivor

■ Gift tax implications


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Life Insurance Trust

Advantages

■ Proceeds provide liquidity for estate taxes and administration costs

■ Proceeds are excluded from estates of grantor and spouse

■ Proceeds may be held in trust for benefit of children and grandchildren without additional estate taxes or generation skipping taxes


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Life Insurance TrustHow They Work


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The Reliance Story


■ Overview

■ Services

■ Products

■ Roles



■ Web Site


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Trust Transfer Program

■ Complete program to gather assets in Bank Trust Departments■ Marketing plan

■ Marketing material

■ Flow chart

■ Procedures

■ Asset retainer■ Build relations across multiple generations

■ Reliance Trust Company listed as successor trustee


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The Reliance Story


■ Overview

■ Services

■ Products

■ Roles



■ Web Site

■ www.relico.com/CIC

Date post:	15-Jan-2016
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