Shakespeare & Lincoln. Historic perspectives for 21 st Century Estate and Charitable Planning

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1 Shakespeare & Lincoln Historic perspectives for 21 st Century Estate and Charitable Planning

2 Snapshot comparison Both Shakespeare and Lincoln had reached the top of their professions and had business partners. Both Shakespeare and Lincoln had substantial assets in their estates. Both had family drama in their lives. Do their stories sound like any clients you know? Shakespeare Entrepreneur wildly successful several business partners in his company Net worth at death =? estimate is L20 million+ in today s terms Wife life-long partner in building the family fortunes Children Susanna: intelligent, well-off Judith: made poor choices Comprehensive estate plan for family and business Lincoln Attorney, politician, President one partner in his law firm Net worth at death = $110,000 $1.6 million in today s terms Wife emotionally unstable spendthrift who was always cared for Children Robert: 23-year old Harvard grad now head of the family Tad: special needs adolescent Died intestate No non-probate estate plans

3 Estate Administration / Legacy Shakespeare Susanna / Dr. Hall - executors Trust Protectors The inventory and the secondbest bed Orderly probate What does Shakespeare s final word reveal? Seeing the legacy today Lincoln David Davis Supreme Court Justice appointed administrator Everything divided equally between wife and two sons Wife s 1/3 portion of chattel / personal property Probate took 2 ½ years We will never know Lincoln s final word

4 Business Partners / Neighbors Shakespeare Personal bequests status Blackfriar s left to family, and rented to the King s Men set up so that the partners could eventually purchase the property and theatre Retirement / business succession plan had already been in place for some time Real estate in and around Stratford-Upon-Avon / Warwickshire Lincoln Left William Herndon with no way to buy out Lincoln s interest in the practice $250 fee for services rendered to clients before 1861 Family left without a source of income from his business interests A few real estate investments in Illinois Lincoln s financial advisor had died in February 1865

5 Family the central cell of society Shakespeare Protected and provided for Wife had a home and income for her lifetime Daughter Judith s marriage portion and the rest of the family fortune was safe Secure income stream in perpetuity Entail to continue property ownership(wealth) - intended to last for future generations Lincoln Vulnerable and burdened Family home was sold, Mary moved into a hotel / boarding house in Springfield Mary was institutionalized on occasion, Robert bore the burden of those expenses Assets distributed to each beneficiary outright no creditor protection / spendthrift protection Chaos and disintegration of the family

6 What does it mean for us? Same issues Protect and Provide Estate planning for Death and Diminished Capacity Grantor / Surviving Spouse Family treating children equitably v. equally Business partners Lifetime & legacy gifting (family, charitable) Many advisors and partners around the table coordinated action on behalf of a client / donor Revealing conversations story listening Multi-generational Wealth Management Don t get caught up in the mechanics too early

7 Family owned/controlled businesses Family members who are employees / owners Family members who are not employees / owners Non-family members who are key employees / owners Providing a stream of income from the business for survivors Using philanthropy and business succession planning to achieve multiple goals Converting the business into a multigenerational legacy for the entire family like Shakespeare did Every business can benefit from including philanthropy in the business plan

8 Scarlett Ann Gray New proposals for the new paradigm

9 I already have an estate plan... Immediacy date that Shakespeare executed will is significant Things change Family situation, Laws Assets Family home / Vacation home Business / retirement appreciation Nomination of executors, trustees Will the estate plan achieve what the client really wants? Is the plan complete? Do all the documents and designations coordinate? Clarity in the documents - proper transfer of assets, distribution of income, discretion airtight to avoid failure of trust or litigation from heirs Will the philanthropic institutions accept the gifts and agree to use them as the client wants?

10 New Paradigm beyond the estatetax motivation Re-evaluate current plans Benefits of Trusts for Grantors/ Surviving Spouses for Beneficiaries Don t necessarily eliminate life insurance / ILITs Especially if there is agricultural land / business Especially if there is charitable intent Small and medium sized estates Account for appreciation Generation skipping-style techniques Consider keeping bypass trusts in place QTIP provisions

11 Charitable Planning / Stewardship Demographics Baby Boomers: $ / Volunteer The follow-up generations Lower incomes / savings levels Millennials are socially conscientious Multi-generational planning Tithing Support now Endowed support for later Nonprofit boards Elevating the discourse

12 Trust and Investment Services Laura A. Waller Vice President & Senior Trust Officer Laura Waller, Vice President and Senior Trust Officer, is a trust administrator serving our Ohio clients. She partners with other WesBanco Bank collegues to integrate trust and investment services into our clients lifestyle and legacy plans. She has nearly thirty years experience in estate and philanthropic planning and has worked in banking, nonprofit advancement, higher education, and private financial services. Her areas of expertise include family asset growth and protection, business succession, estate administration and philanthropy. Her unique background has prepared her to work with clients and their advisors to evaluate and design customized strategies for asset management. Waller holds a degree in Economics from The Ohio State University in Columbus, Ohio and is an author and popular speaker on the topics of estate planning, leadership, and creating a life of success, significance and security. Trust and Investment Services WesBanco Bank, Inc. is a Member FDIC.