ABA TRUST SCHOOLS · liquid, fixed income, equity, mutual fund, and other investments • Describe the methods used to select and analyze stock and bond investments • Explain the

ABA TRUST SCHOOLS

Emory Conference Center and Hotel

Atlanta, Georgia

FOUNDATIONAL

2

ABA FOUNDATIONAL TRUST SCHOOL COURSE ABSTRACT

Course Name: Instructor: Introduction to Investment Management Self-Paced Online Course (ABA) Course Credit: ICB/CTFA – 4.25 hrs required pre-session courses Course Description: An overview of the investment management issues that affect personal trusts. It covers investment types; stock and bond selection/analysis; investment portfolio management; and economic and legal influences on investments. Course Objectives:

To enable students to:

• Define the types of investments used in trusts that fall within these categories: cash and liquid, fixed income, equity, mutual fund, and other investments

• Describe the methods used to select and analyze stock and bond investments • Explain the mechanics of portfolio management • Identify key client information to help clients determine investment portfolio

considerations • Describe economic influences regarding trust investments, including the Federal

Reserve, business cycles, and economic indicators • Explain the legal considerations that affect actions regarding trust investments

3


Course Name: Instructor: Introduction to Trust Administration Self-Paced Online Course (ABA) Course Credit: ICB/CTFA – 3.25 hrs required pre-session course Course Description: An overview of trust administration for personal trusts and is designed to help new trust professionals identify key issues and use common trust terminology appropriately. It covers trust basics, including requirements to create a trust and common types of personal trusts; account acceptance and termination considerations; and factors to consider before making discretionary distributions. Course Objectives: To enable students to:

• Explain how property ownership impacts trusts • Explain basic trust concepts and terminology • Discuss personal trusts • Describe account acceptance and termination procedures • Explain the considerations for discretionary distributions

4

ABA FOUNDATIONAL TRUST SCHOOL

COURSE ABSTRACT Course Name: Instructor: Trending Topics in Trust Phoebe Papageorgiou Length: 2 hrs Course Description: Discuss recent developments in the legal, regulatory and competitive landscapes affecting the trust industry and fiduciary administration and investment professionals. Course Objectives: To enable students to:

• Explore Industry trends in cannabis, cryptocurrency and bitcoin • Knowledge of the basic terminology and key differentials between digital ledger

technology • How to plan with cryptocurrency asset for wealth transfer planning purposes

Summary of Course Content: • Explore Trending Topics in the Industry

• Federal and State Statutory / Regulatory Developments • Significant Themes in Fiduciary Litigation • Trends in Trust Drafting and Implications for Trust Administration

5


Course Name: Instructor: Duties & Powers of the Trustee Mark Oller Length: 2.75 hrs Course Description: Discussion of a Trustee’s fiduciary duties and powers, including sources of authority, extent of powers and duties in various situations. Course Objectives: To enable students to:

• Correctly use terms of art common to trust administration. • Identify the roles and responsibilities of a fiduciary in managing trusts. • Determine what documents to review and what to look for when reviewing trust

documents, including typical provisions for funding, distribution and trustee powers.

• Determine how to effectively administer trusts throughout their existence, including special considerations

- during the grantor’s lifetime - after the grantor’s death - in administering the marital and credit shelter trusts.

• Identify issues which arise when administering spray trusts, including - identification of common problems - tools to facilitate proper administration - precautions for administration of spray trusts - special considerations for powers of appointment.

• Identify the proper manner for administering trusts with a co-fiduciary, including - delegation of duty - compensation - decision making.

Summary of Course Content: • Trust Terminology • Fiduciary Roles & Responsibilities • Reviewing the Trust Agreement and Related Documents • Sample Trust Provisions

• Administering Trusts through the Years—Lifetime, Death and Post-Death • Issues for Spray Trusts • Issues with Co-Trustees

6


Course Name: Instructor: Acceptance & Termination Issues Hugh Magill Length: 2 hrs Course Description: Discusses administrative procedures in setting up and terminating accounts. Course Objectives: To enable students to:

• Implement appropriate account acceptance procedures including: o Conducting appropriate document review o Identification and analysis of sensitive trust issues o Evaluation of assets o Examination of prior fiduciary administration o Review of compensation provisions

• Identify situations when the institution should refuse and appointment to serve as trustee

• List situations which would cause a trust to terminate • Implement appropriate account termination procedures including:

o Identify when it is appropriate to consult with trust counsel of termination issues o identify appropriate distributees o determine appropriate income allocation o retain appropriate tax reserves o advise beneficiaries of tax consequences o develop distribution plan o identify and prepare appropriate receipts, releases, and accountings.

Summary of Course Content:

• Acceptance of Trusts o document review o review of assets o prior fiduciary administration o compensation o character of parties &

conflicts of interest o acceptance procedure

• Rejection of Trusteeships o obligation to accept o reasons to refuse

• Termination

o causes o trust counsel o income allocation o income and estate taxes o cessation of fees o identify distributees o list of assets o market volatility o receipts, release and funding

agreement o judicial accounts

7


Course Name: Instructor: Fiduciary Administration I: Risk Management Hugh Magill Length: 2.25 hrs Course Description: provides assistance in identifying situations which could give rise to potential risk and ultimately litigation and risk management steps that can be implemented to reduce potential exposure and avoid liability. Course Objectives: To enable students to: • Identify situations that could give rise to disputes and litigation and to take steps to

minimize those risks. Including: o The estate planning process o Asset management o Real estate and environmental liability o Life insurance o Self-dealing and prohibited transactions o Third party liability o Discretionary distributions

• Provide appropriate communications to beneficiaries to meet legal requirements and promote good client relations

Summary of Course Content: • Types of Trust Litigation • Participation in the Estate Planning Process • Asset Management • Self-Dealing and Prohibited Transactions • Fiduciary Liability to Third Persons • Notice to Beneficiaries and Accounting • Discretionary Distributions

8


Course Name: Instructor: Discretionary Distributions Mark Oller Length: 1.75 hrs Course Description: To pay or not to pay? Discussion of the trustee’s role, responsibilities and potential liability in paying discretionary distributions under a trust. Course Objectives: To enable students to: ♦ Develop a process to recommend whether request for discretionary distribution should be

granted. ♦ Identify what inquiries should be made and what factors should be considered in granting

the request. ♦ Define the distribution standards most commonly found in trust documents. ♦ Determine whether a beneficiary's request falls within the distribution standard set forth in

the trust document. ♦ Identify when assets outside the trust must be considered in the distribution decision ♦ Estimate the potential tax impact of making a discretionary distribution ♦ Identify and explain the impact of special considerations including - spendthrift clauses - expenses of the income beneficiary presented after death - attachment by creditors - disabled beneficiaries Summary of Course Content: ♦ General Principles ♦ Steps in Exercising Discretionary Authority ♦ Specific Discretionary Standards for Distribution ♦ Advancements ♦ Exhaustion of Trust by Discretionary Distributions ♦ Loans ♦ Expenses of Income Beneficiary Presented after Death ♦ Consideration of Assets Outside of Trust ♦ Spendthrift Clauses ♦ Trust for Disabled Beneficiaries ♦ Tax Consequences ♦ “Other” Considerations

9


COURSE ABSTRACT Course Name: Instructor: Fiduciary Income Tax Tom Pauloski and Tom Lasley Length: 2.25 hrs Course Description: Learn basic federal income tax concepts that govern trusts, estates, beneficiaries, and in some cases, grantors. Course Objectives: To enable the student to (i) conduct high-level discussions about trust and estate with tax professionals and clients; and (ii) identify key issues on a fiduciary income tax return (Form 1041). Summary of Course Content:

• Overview of fiduciary income tax concepts • Who is the taxpayer?

o Trust o One or more beneficiaries o Deemed owner of a grantor trust

• Grantor trusts o When is a trust a grantor trust? o Who is the taxpayer? o Planning implications

• Nongrantor trusts o Trust accounting income vs. taxable income o Distributable net income and its importance o Income distribution deduction o Simple vs. complex trusts o Trust income tax rates vs. individual rates o Estimated tax payments o Income in respect of a decedent o Election to treat revocable trust as part of estate o 65-day rule o Separate share rule o Alternative minimum tax

10


Course Name: Instructors: Estate Planning Skip Fox Length: 2 hrs Course Description: This course will review some of the basic estate planning techniques, such as portability, the A/B estate plan, the effective use of the marital deduction, types of marital trusts, planning for gifts, types of gifts to minors, gifts of insurance and basic estate planning for retirement benefits. The course will use a hypothetical estate planning situation as the basis for the discussion. Course Objectives: To enable students to:

• Understand the marital deduction • Know the differences in the types of marital trusts and appropriate uses of each • Understand the A/B estate plan and portability • Know the advantages and disadvantages of revocable living trusts • Understand basic lifetime giving strategies • Know the advantages and disadvantages of different types of gifts to minors, including

custodial gifts, 2503 (c)trusts and Crummey trusts • Understand Crummey powers • Understand the basics of gifts of insurance and insurance trusts • Understand the basics of charitable giving as an estate planning strategy • Have a basic knowledge of estate planning for retirement benefits by spouses


• Portability versus optimum use of the marital deduction • Full use of the unified credit • Types of marital trusts • Marital planning changes in light of the increasing unified credit • Coordinating retirement/IRA beneficiary designations with the estate plan • Effective Uses of Trusts • Gifts of insurance • Administering Crummey trusts • Advanced lifetime planning techniques • Charitable Remainder and Lead Trusts

11


COURSE ABSTRACT Course Name: Instructor: Case Study Work & Review Colin Korzec Length: 2.5 hrs Course Description: Case based on material presented during the session courses will be assigned to student teams. The teams will be expected to apply concepts and principles addressed in class to these realistic scenarios. The teams should be prepared to discuss their findings and recommendations with the faculty and their peers and defend their suggestions. Course Objectives: To enable students to:

• apply concepts and principles to real-life trust advisory scenarios • identify and accomplish clients’ goals • integrate fiduciary responsibilities with clients’ desired outcomes • demonstrate learning has occurred

Summary of Course Content: Case is expected to cover topics covered in:

• Federal Estate & Gift Taxation • Duties & Powers of the Trustee • Discretionary Distribution • Generation Skipping Tax • Fixed Income Concepts • Charitable Trust Administration • Investment Products • Fiduciary Risk & Litigation • Acceptance & Termination • Estate Planning

12


COURSE ABSTRACT Course Name: Instructor: Charitable Trust Administration David Llewellyn Length: 2 hrs Course Description: An overview of charitable giving during life and at death; the administrative procedures, rules and considerations used in administering charitable trusts. Course Objectives: Enable students to:

• Distinguish the levels of income tax deductions related to charitable giving during life • Identify the advantages, features and benefits of charitable lead trusts and charitable

remainder trusts • Compare and contrast public charities, private foundations, donor advised funds, and

pooled funds • Introduce the filing and reporting requirements for exempt and non-exempt charitable

trusts • Counsel clients regarding charitable planning opportunities

13


COURSE ABSTRACT Course Name: Instructor: Probate Administration David Llewellyn Length: 2 hrs Course Description: Review the steps necessary to administer a guardianship account and decedent's estate. You'll discuss aspects of administration that pose potential liability, and how to avoid them. Plus, you'll receive guidelines and administrative tools (checklists, tax reporting documents, and spreadsheets). Course Objectives: To enable students to:

• define estate and guardian administration terms • perform the duties of personal representative/trust officer regarding documents, asset

gathering and security, accounting, and family/beneficiary information gathering techniques

• communicate estate administration procedures to both internal and external customers Summary of Course Content:

• review of terminology • duties and responsibilities of the estate administrator • administration process from opening, acceptance, accounting and fact gathering through

final distribution and estate settlement • practical guidelines, suggestions and tools for use in effective estate administration

process

14


COURSE ABSTRACT Course Name: Instructor: Federal Estate and Gift Tax I & II Steve Goodman Length: 4 hrs Course Description: This course examines the federal transfer (gift and estate) tax system in detail and how it affects transfers of property both during life and after death. The discussion focuses on specific techniques to minimize or avoid transfer taxes, and the advantages and disadvantages of each approach. The discussion will also explore how to accomplish a client’s goals in light of the current transfer tax system and several tax- and non-tax related issues that should be considered before adopting a specific approach. Course Objectives: To enable students to:

• explain the tax effect of their client's estate plan and various transactions • identify planning opportunities for their clients • develop strategies to minimize their client's estate taxes • develop solutions to client needs that will bring new business opportunities


• Unification • Computation of the estate tax • Liability for payment • Credits against the estate tax • Definition and components of the gross estate • Estate tax deductions • Imposition & rate of gift tax • Liability for payment of the gift tax • Transfers subject to gift tax • Gift tax deductions • Generation Skipping Tax overview • How the income tax basis rules can affect strategies

15


Course Name: Instructor: Generation Skipping Tax Steve Goodman Length: 2 hrs

Course Description: This introductory course will describe the principal planning issues that are posed by the generation-skipping transfer tax (GST), so that students will be able to recognize situations in which GST concerns might arise and then be able to make the most effective use of the tools available to minimize or eliminate the tax. Course Objectives: To enable students to: • Recognize situations that may be affected by the GST • Advise their clients on methods to minimize the impact of the tax Summary of Course Content: • identifying generation-skipping transfers • use of the GST exemption • deemed allocation rules • qualified severances • payment of the tax • constructive additions • planning strategies

16


Course Name: Instructor: Introduction to Retirement Planning Barb Van Zomeren Length: 2.25 hrs Course Description: An overview of employee benefits in retirement planning and major administrative issues. The course will focus on the impact of qualified benefit plans in the client's overall financial plan. Course Objectives: To enable students to: • understand the favorable tax treatment of qualified retirement plans, and requirements to

obtain that treatment • identify the common qualified retirement plans and list their features and benefits from the

participant’s viewpoint • compare and contrast the features and benefits of defined benefit and defined contribution

plans from the participant’s viewpoint • identify retirement planning opportunities that will effect a client's overall financial plan • understand the major administrative issues associated with large balance IRAs and the

fundamentals of Required Minimum Distributions • be able to explain to clients and prospects the various options available to a retiree in a

retirement plan • Understand the impact on the estate plan of naming various beneficiaries on an IRA Summary of Course Content: • introduction to the various types of qualified retirement plans • practical aspects of qualified retirement plans in relation to the participant • rollover requirements and planning • distribution requirements and penalties • the impact of recent tax law changes on participants of qualified plans • discussions of issues involved in IRA beneficiary designations

17


Course Name Instructor General Investment Overview Sean McCarthy Length: 2 hrs Course Description: A foundational course that builds the students’ knowledge of economics, capital markets, and government financial policies. Course Objectives: To enable students to:

• Comfortable with a broad spectrum of economic concepts • Understand fundamental economic terms • Differentiate various economic systems

o capitalism o socialism o communism

• Discuss Keynesian vs. Monetarism • Working knowledge of economic impact from

o inflation o employment o money supply o Interest rates

• Analyze economic boom and bust cycles Summary of Course Content: • Micro and Macro economic theory • Economic systems • Economic terminology

• Impact of various economic factors on output • Role of governmental policies on economics • Review 2008-2009 financial crisis

18


Course Name Instructor Types of Investments Uma M. Rajeshwar Length: 2.25 hrs Course Description: This course is intended to provide participants with a firm grounding on the variety of investment products encountered by professionals within banks, trust companies and RIAs. This will begin with a comprehensive overview of the characteristics of various marketable securities such as stocks, bonds, and cash equivalents, and progress on to an understanding to mutual funds, ETFs, a variety of asset classes, and alternative assets such as private equity and hedge funds. Course Objectives: To enable students to:

• Obtain an understanding of investment products and asset classes encountered in the workplace and industry.

• Understand and explain the notion of investment risk. • Understand the risk and liquidity characteristics of the various securities. • Understand basic packaged products such as mutual funds and ETFs. • Understand the notion of a derivative. • Understand alternative asset classes such as private equity, hedge funds, REITs,

MLPs, etc. • Understand style characteristics: Value vs. Growth. • Understand accounting & tax issues unique to each asset class. • Understand Research service providers that provide information: Morningstar, S&P,

Factset, etc. • Understand how this all comes together through Asset Allocation.


• Stocks: Definition. Review risk and liquidity characteristics. • Stocks: Review of asset classes, Large/Mid/Small cap, and Styles, Value, Growth,

and Blend. • Bonds: Definition. Review types and their risk & liquidity characteristics. :

Treasuries, Corporates, High Yield, Municipal bonds. • Mutual Funds & ETFs: Definition. Understand differences. Review types, and risk

and liquidity characteristics. • Derivatives: Definition. • Alternative Asset classes: Private Equity, Hedge Funds, REITs, MLPs. Review types

and risk and liquidity characteristics. • Overview of tax and accounting issues relating to each asset class. • Overview of information providers for the various asset classes. • Brief overview of Asset Allocation.

19


Course Name: Instructor: Regulation and Compliance Kent Lytle Length: 2.5 hrs Course Description: The course consists of an overview of the regulatory environment within which banks and trust companies operate. Topics will include discussions on: a general overview of the regulatory environment, applicable law and regulation, key risk issues mitigation concepts for fiduciary relationships, and concepts of governance of the fiduciary business within organizations. Course Objective: To provide students an overall understanding of the responsibilities of a fiduciary and applicable regulations they operate under. By the end of the course, students should be able to recognize the risks in the fiduciary business and how to avoid them. Summary of Course Content: Areas of coverage: • Evolution of the Fiduciary Business • Regulations: 12 CFR 9, Prudent Investor, Employee Retirement Income Securities Act

(ERISA), Gramm Leach Bliley Act • Rating System: Uniform Interagency Trust Rating System (UITRS) • Key Concepts:

o Required Written Policies and Procedures o Duty of Loyalty o Conflicts of Interest o Tying o Conformance to Governing Documentation o Fiduciary versus Agent o Risk Management o Investment Issues o Anti-Money Laundering/Bank Secrecy/USA Patriot Act o Legal Areas of Risk o Day to Day Risk Issues o Concepts of Governance o Investment Issues

20


Course Name: Instructor: Ethics: Compromising Principles for Principals Mary Radford Length: 45 mins Course Description: This course is a provocative discussion regarding financial industry ethics. Course Objectives: Attendees will learn how to:

• Identify ethical standards in the financial industry • Understand how different forces impact their ethical decisions • Be an advocate for improving ethical standards in the financial industry • Know how to defend an ethical standard that goes beyond the minimum regulatory

requirements

Summary of Course Content: In this course, we will discuss the current state of affairs regarding ethics in the financial industry. A provocative discussion will analyze what is truly ethical behavior, and how can we apply it to our professional lives. An honest analysis of why the financial industry is so universally hated will encourage the students to develop a better viewpoint of their ethical decisions. We will create a plan for how each of us can improve the ethical behavior of our industry and thus improve our public perception.

21

ABA TRUST SCHOOL COURSE ABSTRACT

Course Name: Instructor: Relationship Management TBD Length: 45 Mins Course Description: This session will explore strategies around how client relationship management is a is impacting the financial services industry. Summary of Course Content and Objectives: A high-level dive in which attendees should come away with an understanding of how the following items impact your client relationships:

• Summarizing and documenting the client relationship o Family dynamics and extended relationships of clients o Family tree o Differing beneficial interests o Cash needs vs wants and balancing interests o Overall relationship net worth

• Manage client expectations o Document limitation o Monte Carlo simulations – cash needs and projections o Communication preferences and frequency o Timing of deliverables o Tax reporting o Capacity and role o Behavioral finance

• Evaluate and develop new business o Asset retention policies o Developing relationships with internal/external partners or professionals o Strategies to encourage referrals