1. Trust Administration Workshop Dymond Reagor Colville, LLP Use Page Down and Page Up to View Presentation

2. Conditions of Use n This presentation is posted under the concept of shareware. n If after viewing the presentation you decide you want to use it, go ahead but, please pay for it. n Cost $75 n Send to: Dymond Reagor Colville, LLP 8400 E. Prentice Ave., Suite 1040 Greenwood Village, CO 80111 (303) 793-3400 mail@drc-law.com

3. What is a Trust? “a fiduciary relationship with respect to property, subjecting the person by whom the title to the property is held to equitable duties to deal with the property for the benefit of another person, which arises as a result of a manifestation of an intention to create it.” Restatement Second of Trust §2

4. What is a Trust? n Trustmaker –Settlor –Trustor –Grantor n Trustee(s) n Beneficiary(ies)

5. What is a Trust? n Living n Testamentary n Revocable n Irrevocable

6. What’s in a Trust? n Lifetime Transfers –Retitle Assets –Acquire Assets –Transfers by Agent n Postmortem Transfers –Beneficiary Designations –Pour Over Will

7. Why in a Trust? It plans for your loved ones It plans for your loved ones Contains your loving instructions Contains your loving instructions Its private and confidential Its private and confidential Reflects your hopes, fears, dreams and values Reflects your hopes, fears, dreams and values Its good in every state Its good in every state It plans for your disability It plans for your disability

8. Why in a Trust? Outright Outright In Trust In Trust no protection creditor protection predator protection self protection estate tax protection

9. Trust Administration Trustee’s management of the trust assets Trustee’s management of the trust assets For the benefit of the beneficiary(ies) For the benefit of the beneficiary(ies) Pursuant to the Trustmaker’s instructions Pursuant to the Trustmaker’s instructions

10. Trust Administration Alive and well Alive and well Alive and not so well Alive and not so well Upon my death Upon my death

11. Trust Administration Article FourArticle Four Article Fifteen (married) Article Twelve (single)Article Fifteen (married) Article Twelve (single) W9 - Taxpayer Identification NumberW9 - Taxpayer Identification Number Alive and well Alive and well

12. Trust Administration ORGANIZATIONORGANIZATION Alive and well Alive and well

13. Trust Administration Article FourArticle Four Article Fifteen (married) Article Twelve (single)Article Fifteen (married) Article Twelve (single) W9 - Taxpayer Identification NumberW9 - Taxpayer Identification Number Alive and not so well Alive and not so well

14. Trust Administration Alive and not so well Alive and not so well Ensure quality care in a health environmentEnsure quality care in a health environment Look for guidelinesLook for guidelines Carryout wishes and best interests of the individualCarryout wishes and best interests of the individual

15. Trust Administration Alive and not so well Alive and not so well Locate important documentsLocate important documents Living TrustLiving Trust Power of AttorneyPower of Attorney Healthcare Power of AttorneyHealthcare Power of Attorney Living WillLiving Will Asset InformationAsset Information Alive and not so well Alive and not so well

16. Trust Administration Alive and not so well Alive and not so well Establish and Use a Team of AdvisorsEstablish and Use a Team of Advisors CPACPA Financial AdvisorFinancial Advisor BeneficiariesBeneficiaries Trusted FriendsTrusted Friends Healthcare AdvisorsHealthcare Advisors AttorneyAttorney Alive and not so well Alive and not so well

17. Trust Administration Alive and not so well Alive and not so well Determine Coverage and Apply for BenefitsDetermine Coverage and Apply for Benefits Health InsuranceHealth Insurance Long term health coverageLong term health coverage Medicare - MedicaidMedicare - Medicaid Social SecuritySocial Security

18. Trust Administration Alive and not so well Alive and not so well Establish and Use a Record Keeping SystemEstablish and Use a Record Keeping System Inventory AssetsInventory Assets IncomeIncome ExpensesExpenses Insurance ClaimsInsurance Claims Medical CostsMedical Costs Consider using a CPA to help establishConsider using a CPA to help establish Alive and not so well Alive and not so well

19. Trust Administration ORGANIZATIONORGANIZATION Alive and not so well Alive and not so well

20. Trust Administration Alive and not so well Alive and not so well Consider appointing a Professional CotrusteeConsider appointing a Professional Cotrustee Article Sixteen or ThirteenArticle Sixteen or Thirteen Administration is too BurdensomeAdministration is too Burdensome Alive and not so well Alive and not so well

21. Trust Administration Complete Funeral ArrangementsComplete Funeral Arrangements May be paid from trust assetsMay be paid from trust assets Best not to pay from own assetsBest not to pay from own assets Do not immediately accept benefitsDo not immediately accept benefits Consider use of disclaimersConsider use of disclaimers Possible Estate Tax benefitsPossible Estate Tax benefits Postmortem Administration Postmortem Administration

22. Trust Administration Postmortem Administration Postmortem Administration Locate important documentsLocate important documents Living TrustLiving Trust Asset InformationAsset Information Insurance PoliciesInsurance Policies Retirement Plan InformationRetirement Plan Information Postmortem Administration Postmortem Administration

23. Trust Administration Postmortem Administration Postmortem Administration Establish and Use a Team of AdvisorsEstablish and Use a Team of Advisors AttorneyAttorney CPACPA Financial AdvisorFinancial Advisor BeneficiariesBeneficiaries Trusted FriendsTrusted Friends

24. Trust Administration Article SixArticle Six Trust RegistrationTrust Registration SS4 - EIN ApplicationSS4 - EIN Application Prepare InventoryPrepare Inventory Tax Planning and ElectionsTax Planning and Elections Apply for and Collect BenefitsApply for and Collect Benefits Investment PlanningInvestment Planning Postmortem Administration Postmortem Administration The Administrative TrustThe Administrative Trust

25. Trust Administration Pay final expenses and billsPay final expenses and bills Pay taxes - income and estatePay taxes - income and estate Prepare Final AccountingPrepare Final Accounting Distribute AssetsDistribute Assets Personal Property Personal Property Outright Outright In Testamentary Trusts In Testamentary Trusts Postmortem Administration Postmortem Administration The Administrative TrustThe Administrative Trust Establish accounting systemEstablish accounting system

26. Trust Administration ORGANIZATIONORGANIZATION Postmortem Administration Postmortem Administration The Administrative TrustThe Administrative Trust

27. Trust Administration Postmortem Administration Postmortem Administration The Administrative TrustThe Administrative Trust Consider appointing a Professional CotrusteeConsider appointing a Professional Cotrustee Article Sixteen or ThirteenArticle Sixteen or Thirteen Administration too BurdensomeAdministration too Burdensome

28. Trust Administration Testamentary Trusts Testamentary Trusts Creditor ProtectionCreditor Protection Predator ProtectionPredator Protection Self ProtectionSelf Protection Estate Tax ProtectionEstate Tax Protection

29. Trust Administration Providing for Surviving SpouseProviding for Surviving Spouse Family TrustFamily Trust Marital TrustMarital Trust Testamentary Trusts Testamentary Trusts

30. Trust Administration Common TrustCommon Trust Special Needs TrustSpecial Needs Trust General Needs TrustGeneral Needs Trust Convenience TrustConvenience Trust Testamentary Trusts Testamentary Trusts Providing for BeneficiariesProviding for Beneficiaries

31. Trust Administration AttorneyAttorney CPACPA Financial AdvisorFinancial Advisor BeneficiariesBeneficiaries Trusted FriendsTrusted Friends Testamentary Trusts Testamentary Trusts Establish and use a Team of AdvisorsEstablish and use a Team of Advisors

32. Trust Administration Testamentary Trusts Testamentary Trusts Establish and Use a Record Keeping SystemEstablish and Use a Record Keeping System Consider using CPAConsider using CPA SS4 - EIN ApplicationSS4 - EIN Application Inventory AssetsInventory Assets IncomeIncome ExpensesExpenses DisbursementsDisbursements Periodic ReportsPeriodic Reports

33. Trust Administration Testamentary Trusts Testamentary Trusts ORGANIZATIONORGANIZATION

34. Trust Administration Testamentary Trusts Testamentary Trusts Consider appointing a Professional CotrusteeConsider appointing a Professional Cotrustee Article Sixteen or ThirteenArticle Sixteen or Thirteen Administration too BurdensomeAdministration too Burdensome Too much pressure from beneficiariesToo much pressure from beneficiaries

35. Trustee Responsibilities Comply with terms of the trust Comply with terms of the trust Comply with terms of the law relating to trusts Comply with terms of the law relating to trusts Be fair in dealings with the beneficiaries Be fair in dealings with the beneficiaries Comply with tax requirements Comply with tax requirements Segregate, preserve and invest trust assets Segregate, preserve and invest trust assets Keep and render a full and accurate record and accounting of trusteeship Keep and render a full and accurate record and accounting of trusteeship