personal relationships…professional solutions 11 trust transfer program presented by john a....

Personal Relationships…Professional Solutions

11

Trust Transfer Program

Presented by

John A. Rodgers, III


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The Trust Transfer Program Industry Conditions Trust Transfer Program

Two Strategies Overview

Portability Provisions How to get Started

Questions Flow Chart

Individual Roles


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Individual Roles


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Recent Changes In The Industry

Provide A Window Of Opportunity For Marketing Reliance’s Trust Services

Deregulation Mergers Loan spreads thin…non interest income Expense reduction…800 numbers Stress fee income…trust fees…proprietary

mutual funds in trust accounts


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Individual Roles


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Two Strategies Gather a greater percentage

of your client’s assets.

Retain client assets for a longer period of time, especially after the death of your client.


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Trust Transfer Program

Appointment of Reliance as successor trustee of an existing Revocable or Irrevocable Trust


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What are Trust Transfers?

A transfer of trust assets in some circumstances can be initiated by your client if he/she has an existing trust or is the beneficiary of an existing trust for which a bank, trust company, or an individual is currently acting as trustee.


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Benefits of the Trust Transfer Program

Strengthen client relationships Give clients an alternative option to common

Bank Trust services Offer products other than bank proprietary

funds. Friendly, personalized service


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Individual Roles


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“Portability Provision”

Two Little Words That

Your Bank Trust

Officer Doesn’t Want

Your Client To Know

About…


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Example of a “Portability Provision”

Removal of Corporate Trustee

Any corporate Trustee may be removed as Trustee atany time by the Grantor, if living, otherwise by Grantor’s wife, if living, otherwise by a majority in interest of such beneficiaries or if none a majority in interest of such parents, guardians, or conservators. In the event of the removal of the corporate Trustee the person or persons removing the corporate Trustee shall appoint a successor corporate Trustee.


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Two Types of Relationships

Revocable Trust Amendment executed by Grantor and Reliance to

remove current trustee and designate Reliance Trust Company as the new trustee.

Irrevocable Trust Current income beneficiary of trust executes a

document and sends to the current trustee to notify it of its removal


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Irrevocable

Contains Portability Provision Letter of removal and appointment

Does Not Contain Portability Provision Send current trustee letter requesting their

resignation in favor of Reliance Possibly retain legal counsel


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Individual Roles


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Ask Questions

“Are you the beneficiary of a trust?” “Have you established a trust with an

outside trustee?”

Ask… “Are you satisfied with the investment and/or administrative services you are receiving from the

current trustee?”

If Yes to either question, then

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Identify client/prospects

Run ad or invitation Send letter/booklet

Interview/obtain trust/will & statement

RTC Reviews trust & statement/provides case analysis if requested

Prototype Trust Amendment

RTC opens trust account

RTC Gathers trust assets & you receive fees

No portability language

Beneficiary sends trustee resignation

letter

Petition court for trustee removal

Portability language

Beneficiary sends letter of removal and

appointment

Revocable Trusts Irrevocable Trusts

Trust Transfer Flowchart


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Marketing For Trust Assets

Trust Transfer Ad / Seminar Invitation Send Prospecting Letter Send Client Booklet to Clients With:

Existing Trusts or Beneficiaries of Trusts

Sample ads, invitations & letters located at www.relico.com/CIC


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Gathering Trust Assets

Obtain a copy of the trust agreement Obtain a copy of recent trust statement Determine eligibility

Sample ads, invitations & letters located at www.relico.com/CIC


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Individual Roles


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RTC’s Role as the Trustee

Maintain the client’s trust account

Direct the trust’s investments

Administer the trust according to the terms of the trust


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The Client’s Role

Provide a copy of the trust document and recent account statements

Send a removal and appointment letter


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The Financial Adviser’s Role

Send the trust document, any amendments and the account statements to RTC for review:

John A Rodgers III, Esq.

4505 Columbine Court

Charlotte, NC 28226

www.relico.com/CIC

[email protected]

Telephone: 704-366-8875

Fax: 704-366-4641

personal relationships…professional solutions 11 trust transfer program presented by john a....

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