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  The Wealth Counselor

A monthly newsletter for wealth planning professionals
Prepared by The Advisors Forum
Edited and distributed by

  Carrell Blanton Ferris & Associates, PLC   
June 2016
In This Issue

Just When You Thought an Irrevocable Trust Couldn' t Be Changed: 
5 Ways to Modify an Irrevocable Trust
Out of Date and In Need of Immediate Overhaul: 
The Story of Many Existing Estate Plans

Join us for our next Continuing Education program. Click date for registration .

Virginia Beach 
780 Lynnhaven Parkway, Suite 330 
Virginia Beach, VA 23452

Asset Protection 101 
June 14, 2016 at 8:30 a.m.

7275 Glen Forest Dr., Suite 310
Richmond, VA 23226

Asset Protection 101
July 19, 2016 at 8:30 a.m. 

Pending 1 hour credit. Light breakfast will be provided.
For phone registration call 757. 689.8668 for Virginia Beach or 804.285.7900 for Richmond. 
Just When You Thought an Irrevocable Trust Couldn't Be Changed: 
5 Ways to Modify an Irrevocable Trust
Content provided by The Advisors Forum; Edited by James W. Garrett, Esq. 
Irrevocable trusts shouldn't be left to languish as the years go by. In this issue, we'll show you why and how an old or out-of-date irrevocable trust can be modified to benefit you, your clients, their spouses, or other beneficiaries. And, of course, it's all totally legal.

How Trust Modifications Benefit Your Book of Business

Here's a list of reasons why updating an old and stale trust will benefit your clients and strengthen your business relationship with them:
  • Tax-related complexities of outdated or poorly worded irrevocable trusts-such as high tax rates on capital gains or undistributed income in such trusts, or the forfeited opportunity for a step-up in basis at a second death-may now be at odds with your clients' goals and circumstances. An up-to-date trust can take advantage of opportunities to save taxes.
  • Old trusts may limit your ability to wisely manage assets inside such trusts as part of an integrated total portfolio approach. This may mean poorer investment and tax outcomes for your client and more time-consuming management approaches for you, perhaps without compensation for that extra customization. An up-to-date trust can make management easier for you and more productive for your clients.
  • In some cases, your clients may have declined your offers to manage assets in such trusts, since making any changes to the existing holdings would trigger income and/or capital gains taxes and surtaxes in the context of aggressively accelerated trust tax-rate schedules. But, if you could show them strategies for getting rid of these restrictions, not only might your clients value the improved flexibility and diversification, but you might win the opportunity to manage those assets.
  • The beneficiaries, trustees, and your clients' other advisors will appreciate your insight, strengthening their desire to look to you for additional services.

Out of Date and In Need of Immediate Overhaul: 
The Story of Many Existing Estate Plans

Content provided by The Advisors Forum; Edited by James W. Garrett, Esq.
Client and prospect meetings need to include a review of the estate plan - does it still work as expected, is the trust funded, have beneficiary designations been completed, did any laws change, have family or finances changed, how old are the documents, and was there a move to a new state? Recognizing when an estate plan needs to be updated will lead to meaningful discussions about what keeps clients and prospects up at night. When you can help alleviate their concerns, you're a hero to your clients.

How Your Business Will Benefit from Spotting Estate Plans That Need Updates

An out-of-date estate plan can cause a multitude of problems. Your business will benefit from identifying out-of-date plans because:
  • Your clients will gain peace of mind knowing that you are watching out for them and proactive in seeking solutions.
  • If an estate plan doesn't work as expected, assets may likely leave your management.
  • You may gain new assets under management as new investments and trusts are created for grandchildren or other beneficiaries.
  • You will make new connections and gain new referral sources when you work with your client's attorney, accountant, and banker to bring things up to date.
Ten Reasons for Updating an Estate Plan and a Financial Advisor's Opportunities

Reason # 1 - Change in Marital Status.
Separation, marriage, and divorce all require major changes to an estate plan. Also, be on the lookout for prenuptial planning opportunities if marriage is being considered.

Reason #2 - Change in Financial Status.
Winning the Powerball will certainly change someone's financial status, but so will selling a business, retiring, or receiving an inheritance.  Money in motion may require changes to the estate plan, advanced planning, and additional products.

Reason #3 - Birth or Death.  The birth of a child or grandchild often leads to opening UTMA accounts, setting up 529 plans, and creating gifting trusts. The death of a beneficiary may require the addition of new beneficiaries and changes to beneficiary designations; the death of a family member or friend named as a successor trustee or other fiduciary may result in the need for a corporate trustee.
Upcoming Public Seminars 
Estate Planning Seminars  
Please let your clients know about our educational seminars.   
There is no charge, but seating is limited
Contact us if you would like a speaker for your firm or a private seminar for your clients.  
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