trust administration workshop dymond reagor colville, llp use page down and page up to view...

Trust AdministrationTrust AdministrationWorkshopWorkshop

Dymond • Reagor • Colville, LLPDymond • Reagor • Colville, LLP

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Dymond • Reagor • Colville, LLPDymond • Reagor • Colville, LLP8400 E. Prentice Ave., Suite 10408400 E. Prentice Ave., Suite 1040Greenwood Village, CO 80111 Greenwood Village, CO 80111 (303) 793-3400(303) 793-3400

[email protected]

What is a Trust?What is a Trust?

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

Restatement Second of Trust §2Restatement Second of Trust §2


TrustmakerTrustmaker– SettlorSettlor– TrustorTrustor– GrantorGrantor

Trustee(s)Trustee(s)

Beneficiary(ies)Beneficiary(ies)


LivingLiving

TestamentaryTestamentary

RevocableRevocable

IrrevocableIrrevocable

What’s in a Trust?What’s in a Trust?

Lifetime TransfersLifetime Transfers– Retitle AssetsRetitle Assets– Acquire AssetsAcquire Assets– Transfers by AgentTransfers by Agent

Postmortem TransfersPostmortem Transfers– Beneficiary DesignationsBeneficiary Designations– Pour Over WillPour Over Will

Why in a Trust?Why in a Trust?

• It plans for your loved onesIt plans for your loved ones

• Contains your loving Contains your loving instructions instructions

• Its private and confidentialIts private and confidential

• Reflects your hopes, fears, dreamsReflects your hopes, fears, dreams and values and values

• Its good in every stateIts good in every state

• It plans for your disabilityIt plans for your disability

Why in a Trust?Why in a Trust?

• OutrightOutright

• In TrustIn Trust

• no protection

• creditor protection

• predator protection

• self protection

• estate tax protection

Trust AdministrationTrust Administration

• Trustee’s management of Trustee’s management of the trust assetsthe trust assets

• For the benefit of the For the benefit of the beneficiary(ies)beneficiary(ies)

• Pursuant to the Pursuant to the Trustmaker’s instructionsTrustmaker’s instructions


• Alive and wellAlive and well

• Alive and not so wellAlive and not so well

• Upon my deathUpon my death


• Article FourArticle Four• Article Fifteen (married)Article Fifteen (married)

Article Twelve (single)Article Twelve (single)• W9 - Taxpayer W9 - Taxpayer

Identification NumberIdentification Number



• ORGANIZATIONORGANIZATION





• Article FourArticle Four• Article Fifteen (married)Article Fifteen (married)

Article Twelve (single)Article Twelve (single)• W9 - Taxpayer W9 - Taxpayer

Identification NumberIdentification Number



• Alive and not so wellAlive and not so well• Ensure quality care in a Ensure quality care in a

health environmenthealth environment• Look for guidelinesLook for guidelines• Carryout wishes and best Carryout wishes and best

interests of the individualinterests of the individual


• Alive and not so wellAlive 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 wellAlive and not so well• Establish and Use a Team Establish and Use a Team

of Advisorsof Advisors• CPACPA• Financial AdvisorFinancial Advisor• BeneficiariesBeneficiaries• Trusted FriendsTrusted Friends• Healthcare AdvisorsHealthcare Advisors• AttorneyAttorney



• Alive and not so wellAlive and not so well• Determine Coverage andDetermine Coverage and

Apply for BenefitsApply for Benefits• Health InsuranceHealth Insurance

• Long term health coverageLong term health coverage

• Medicare - MedicaidMedicare - Medicaid

• Social SecuritySocial Security


• Alive and not so wellAlive and not so well• Establish and Use a Establish and Use a

Record Keeping SystemRecord 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 wellAlive and not so well• Consider appointing a Consider appointing a

Professional CotrusteeProfessional Cotrustee• Article Sixteen or ThirteenArticle Sixteen or Thirteen

• Administration is too Administration is too BurdensomeBurdensome



• Complete Funeral Complete Funeral ArrangementsArrangements

• 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 AdministrationPostmortem Administration


• Postmortem AdministrationPostmortem Administration• Locate important documentsLocate important documents

• Living TrustLiving Trust

• Asset InformationAsset Information

• Insurance PoliciesInsurance Policies

• Retirement Plan InformationRetirement Plan Information

• Postmortem AdministrationPostmortem Administration


• Postmortem AdministrationPostmortem Administration• Establish and Use a Team Establish and Use a Team

of Advisorsof Advisors• AttorneyAttorney

• CPACPA

• Financial AdvisorFinancial Advisor

• BeneficiariesBeneficiaries

• Trusted FriendsTrusted Friends


• 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 AdministrationPostmortem Administration• The Administrative TrustThe Administrative Trust


• 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 PropertyPersonal Property

• OutrightOutright

• In Testamentary TrustsIn Testamentary Trusts


• Establish accounting systemEstablish accounting system


• Postmortem AdministrationPostmortem Administration• The Administrative TrustThe Administrative Trust• Consider appointing aConsider appointing a


• Administration too BurdensomeAdministration too Burdensome


• Testamentary TrustsTestamentary Trusts

• Creditor ProtectionCreditor Protection• Predator ProtectionPredator Protection• Self ProtectionSelf Protection• Estate Tax ProtectionEstate Tax Protection


• Providing for SurvivingProviding for SurvivingSpouseSpouse

• Family TrustFamily Trust

• Marital TrustMarital Trust



• Common TrustCommon Trust

• Special Needs TrustSpecial Needs Trust

• General Needs TrustGeneral Needs Trust

• Convenience TrustConvenience Trust

• Testamentary TrustsTestamentary Trusts• Providing for BeneficiariesProviding for Beneficiaries


• AttorneyAttorney

• CPACPA

• Financial AdvisorFinancial Advisor

• BeneficiariesBeneficiaries

• Trusted FriendsTrusted Friends

• Testamentary TrustsTestamentary Trusts• Establish and use a TeamEstablish and use a Team

of Advisorsof Advisors


• Testamentary TrustsTestamentary Trusts• Establish and Use a Establish and Use a

Record Keeping SystemRecord Keeping System• Consider using CPAConsider using CPA

• SS4 - EIN ApplicationSS4 - EIN Application

• Inventory AssetsInventory Assets

• IncomeIncome

• ExpensesExpenses

• DisbursementsDisbursements

• Periodic ReportsPeriodic Reports


• Testamentary TrustsTestamentary Trusts• Consider appointing aConsider appointing a


• Administration too BurdensomeAdministration too Burdensome

• Too much pressure from Too much pressure from beneficiariesbeneficiaries

Trustee ResponsibilitiesTrustee Responsibilities• Comply with terms of the trustComply with terms of the trust

• Comply with terms of the law relating to trustsComply with terms of the law relating to trusts

• Be fair in dealings with the beneficiariesBe fair in dealings with the beneficiaries

• Comply with tax requirementsComply with tax requirements

• Segregate, preserve and invest trust assetsSegregate, preserve and invest trust assets

• Keep and render a full and accurate record and Keep and render a full and accurate record and accounting of trusteeshipaccounting of trusteeship

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