Family Lifetime Maintenance Programs. Givner & Kaye, A Professional Corporation

Transcription

1 Family Lifetime Maintenance Programs 1

2 What We Will Cover: Overview Pg. 3 Our Process: The Four Steps. Pg. 4 Our Process: The Review. Pg. 5 Our Process: The Design. Pg. 6 Our Process: Implement. Pg. 7 Our Process: Maintenance. Pg. 8 Maintenance Program Mission Statement. Pg. 9 Happy Families. Pg. 10 What Is A Maintenance Program? Pg. 13 What Is NOT A Maintenance Program? Pg. 14 Vince Bonazzoli, Esq., The Originator Of Maintenance Programs. Pg. 15 Family Trust Maintenance Program For A Married Couple. Pg. 17 Qualified Personal Residence Trust ( QPRT ) Maintenance Program. Pg. 18 Irrevocable Trust Maintenance Program. Pg. 19 Defined Benefit Pension Plan Maintenance Program. Pg. 20 Questions And Answers. Pg. 21 Bruce@GivnerKaye.com 2 2

3 Overview The estate plan or estate tax plan has been put into effect. Now it is one year later. Or 5 years later. Who has checked to make sure that the parents still like the successor trustees? That they still like the provisions for how assets are going to be distributed to the children? That the house is still in the QPRT after a refinance? That the parents are only taking their pro rata share of FLP distributions? Each plan, each structure, must be renewed and reviewed. We are going to review how this step in the process maintenance (called sustenance by Tony Rose in Say Hello To The Elephants) works, how it provides comfort to the family (and their advisors) and can be customized for every family s situation. Bruce@GivnerKaye.com 3

4 Our Process Four Phases Four Engagements Four Fixed Fees (so the clients does not feel on the clock ). Review Design Implement Maintain 4

5 Our Process 1. Review: 1.1. Review Documents. All of the facts (tax returns, estate plan documents, operating agreements, etc.) Review Meeting. The initial meeting is then held with the entire professional advisory team to review the client s goals and objectives. We educate the clients about the Family Lifetime Maintenance Programs. Bruce@GivnerKaye.com 5

6 Our Process 2. Design: 2.1. Design Structures. Take all that we have learned in the Review and prepare two to eight structures designed to meet the clients goals and objectives Design Meeting. The structures are presented to the clients in a 1/2 or full day meeting with the entire professional advisory team. Depending upon the clients responses, we may need to re Design some of the structures. Bruce@GivnerKaye.com 6

7 Our Process [continued] 3. Implement: 3.1. Format. Based on the structures the client selects, fees, responsibilities and time tables are assigned to complete the project Meeting. When the documents are ready, the clients meet with the advisors to review and execute the documents and explain the initial year s reporting Select Maintenance. The clients select the on going level of maintenance. Bruce@GivnerKaye.com 7

8 Our Process [continued] 4. Maintenance: 4.1. Structural Programs. Our are specific to different structures, e.g., one for family trusts and one for family limited partnerships. Or they can be customized for a particular situation Counselor Program. Our Family Counselor Program (Concierge Care) provides unlimited, instantaneous, 7 days per week access for one fixed fee per year. Bruce@GivnerKaye.com 8

9 Maintenance Program Mission Statement To transform our clients estate planning experience through: (i) (ii) (iii) on-going; customized; and personal (versus letters and ) contact. 9

10 Maintenance Program Mission Statement (continued) The results of this process are: 1. Happy, comfortable families: 1.1. Don t feel the meter is running No procrastination Costs controlled All assets identities and values accounted for in the plan Feel they have a planning team Fiduciaries and family educated about estate in advance. Bruce@GivnerKaye.com 10

11 Maintenance Program Mission Statement (continued) The results of this process are also: 2. Estate plans that work by virtue of being up to date. 3. Happy, profitable referral sources. 4. For the attorney: 4.1. Recurring, predictable revenues Clients become primary referral sources Reduces malpractice exposure Creates additional sources of revenue: 11

12 Maintenance Program Mission Statement (continued) Additional sources of revenue for the lawyer: 1. Conversion fee to put existing clients onto the system. 2. Annual maintenance fees. 3. Additional work requested by the client. 4. Client referrals. 5. Family members and fiduciaries become clients due to family meetings. 6. Trust administration fees. 7. Referrals from other advisors who like the program. 12

13 What Is A Maintenance Program 1. Relationship vs. transaction, so the client is not afraid to call with minor questions related to the estate plan. 2. Ongoing vs. limited scope representation. We have not abandoned the client when the documents have been signed. 3. Proactive vs. reactive representation. We don t wait 5 years to find out that they no longer like the first successor trustee. 4. Maintain estate plan vs. draft documents. 5. Estate plans actually work at death vs. plan today and disengage after documents are signed. Example of man who died while scuba diving 10 years after his trust was signed. Bruce@GivnerKaye.com 13

14 What Is Not A Maintenance Program 1. Only updating estate planning documents. 2. Charging per transaction or interaction after a loss leader, e.g., first five minutes free, charges thereafter. 3. Leaving funding and asset tracking to clients with no followup. 4. Transaction-based process. 5. Charge for each request client makes. (Only designed to generate revenue for lawyer.) Bruce@GivnerKaye.com 14

15 The following slide is from Vince Bonazzolli, Esq. (vbestateplanning.com) from whom we learned the concepts of maintenance programs 15 15

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21 Questions and Answers 21 21