October 18, 2019
Estate Planning in the 21st Century: Using Positive Strategies to Foster Client Happiness and Well-Being (Overview)
Friday’s program offers four sessions that explore how research on well-being and living a meaningful life can inform estate planning. Guided by scientific research of psychologists, Fellows will learn practical drafting (with forms) and counseling approaches that can lead to positive outcomes. Estate planning can and should be focused on encouraging and reinforcing well-being. After all, what is wealth and tax savings for if not for flourishing? This program explores the use of positive strategies ACTEC Fellows can implement in their estate planning practices.
Session 1: Guiding Clients Toward Positivity in Wealth and Inheritance Planning
This session will demonstrate how positive psychology can facilitate wealth and inheritance planning as part of the framework for a family’s well-being and encourages family members to flourish. The session will also address what planning approaches should be avoided. Conditional inheritances and incentive trusts can be perceived as manipulative and controlling. Learn the significance of navigating clients away from utilizing tactics that can negatively impact the inheritor.
Speakers: Richard S. Franklin, Washington, DC Marjorie J. Stephens, Dallas, TX
Session 2: Positive Approaches to Using Financial Resources and Charitable Giving
Wealth can be a positive or negative force in people’s lives. In the past, much of the focus has been on its negative effects. Empirical evidence has shown that money can be spent in ways that foster well-being and positive outcomes. Counseling clients based on this research will help inform trust drafting and design, leading to more positive results. The session will also examine how gratitude, giving back and enhancing inheritors’ autonomy in their philanthropic activities builds emotional gratification and well-being. The session will provide valuable insight into how CRTs, CLATs, donor advised funds and private foundations can be drafted to align with these goals.
Speakers: Raymond C. Odom, Chicago, IL John A. Warnick, Denver, CO
Session 3: Positive Psychology for Mitigating Risks of Inherited Wealth, Expanding Life Expectancy, Income and Well-Being and Managing the Impact of Control Changes
Research reveals that focusing on strengths and virtues may enhance inheritors’ positive traits and mitigate potential negative characteristics. This session will explore the role of greater self-determination and autonomy in wealth transfers. Learn what parents can do to positively impact the welfare of their children and gain an understanding of the positive role wealth and inheritance can play. Additionally, the session will examine current research and implications of income and wealth on life expectancy and overall well-being. Fellows will garner ideas for incorporating data, including the expanding life expectancy of the affluent (the “Prince Charles Effect”), into wealth and inheritance plans and discover the non-tax benefits of lifetime transfers. Speakers will also consider the multidimensional impact of control and self-determination, including shifting the focus of control and the critical element of timing.
Speakers: Richard S. Franklin, Washington, DC Dr. David Gage, Founder and Owner, BMC Associates, Arlington, VA Marjorie J. Stephens, Dallas, TX
Session 4: Positive Trust Drafting Approaches that Support Inheritors’ Well-Being
Fellows will learn to incorporate concepts and language that create more positive, purposeful and flourishing trusts for clients. Understanding this positive approach to wealth and inheritance planning will lead to greater fulfillment for clients’ families. The session will conclude with an overview of the Van Gogh case study.
Speaker: John A. Warnick, Denver, CO
October 19, 2019
Session 1: Alternative Investments: An Investment Dream – A Planning Nightmare
It is generally understood that to achieve a better return from investments one must take more risk. Thus, clients’ portfolios routinely include alternative assets, such as private equity, REITs and hedge funds, designed to provide equity like return with bond like risk or designed to add an “alpha” that otherwise may not be available — for example, cryptocurrency. Regardless of the impact on a portfolio’s risk/return profile, the infusion of alternatives can trigger non-tax laws which impact transfer planning. It often makes a difference if assets are held outright, in trust or in a retirement account. This session will provide pertinent information to help Fellows avoid derailing their clients’ estate plans when dealing with alternative assets and will include a discussion of securities transfers. Fellows will gain valuable insight on how to navigate unforeseen obstacles such as qualified purchaser and accredited investor rules, as well as the impact of tax and securities laws.
Moderator: Katarinna McBride, Chicago, IL
Speakers: David C. Blickenstaff, Chicago, IL Mark R. Parthemer, Palm Beach, FL Robert M. Weylandt, Houston, TX
Session 2: Negotiating and Drafting Charitable Gift Agreements to Avoid the Courts and the Attorney General’s Office
In this session, Fellows will be provided with practical guidance gleaned from real life experiences in the negotiating and drafting of charitable gift agreements. Join us in our discussion with Mark Pacella, Chief Deputy Attorney General, Charitable Trusts and Organizations Section, Office of the Attorney General of Pennsylvania, as we explore complications that can arise and discuss techniques for addressing changes in circumstances, appropriate donor involvement, post-gift standing to sue and compliance with donor intent.
Speakers: Mark Pacella, Pennsylvania Office of the Attorney General, Harrisburg, PA Alan F. Rothschild, Jr., Columbus, GA Karen M. Stockmal, Berwyn, PA
Session 3: Lending as a Creative Planning Solution: Understanding the Bad and Avoiding the Ugly, So All is Good
This session will consider various aspects of lending arrangements to ensure Fellows understand the implications of credit when a trust or other entity is involved. This enlightening program will demonstrate how to use credit as a creative planning solution in a variety of circumstances. We will look at practical challenges that can arise and examine the fiduciary and tax risk issues associated with these credit solutions.
Speakers: F. Peter Conaty, Wilmington, DE Raymond J. Koenig, III, Chicago, IL Rebecca Wallenfelsz, Chicago, IL
Recorded at the 2019 ACTEC Fall Meeting October 18 - 19 Philadelphia, PA
