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What are the advantages to me and my client for using this type of program?
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Financial professionals that advise clients on their estate planning, tax planning or financial advisory services will obtain a very useful tool for enhancing your relationship with your client and provide you with some fee opportunities at the same time.
This type of program will require the involvement of the client’s attorney for proper drafting of the trust instrument, but it can be recommended by other members of the Financial Advisory or Estate Planning team. Fee and referral opportunities are available for this great service to your clients no matter what part you play on the team.
Financial professionals that would normally be in a position to refer this program to their clients are A) attorneys that practice in the estate and trust area, B) CPA’s that advise individuals on tax and financial advisory services, C) trust officers, D) Certified Financial Planners, E) Life Insurance agents that are knowledgeable about the use of life insurance in estate planning and charitable trusts and E) Registered Investment Advisors that are managing portfolios for their investor clients.
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ADVANTAGES OF THE REEVES TRUST MODEL TO EACH DISCIPLINE
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All professionals
Fees to be earned serving as the administrator of the trust’s allocation decisions each year and possible trustee fees if named as trustee.
Obtain the free services of the United Way for analyzing potential charities that may meet the need of the client in terms of both location of the community and the type of charitable cause they are interested in. Assistance in making the correct charity choice and assistance in the management of large donations by steering them to the best charities for their client.
Provides the client with the absolute maximum use of dollars, even to the extent of doubling the impact on a community if a United Way agency is selected and they cooperate together with their supporting United Way. Gifts can be leveraged for their clients making the Financial Professional’s services very valuable in the eyes of the local community they live in as well as the client.
This type of trust encourages the charities to perform to the administrator’s expectations or future donations will be cut back or not provided at all. Agencies that received funding could be reviewed annually to see that their assets were not misappropriated. The administrators would have the power to change charities if they saw that their causes were already funded or misappropriations were occurring. The charities know they may not get a future donation unless they demonstrate a need and spend funds according their cause.
The resources of the United Way have already reviewed and approved the planned spending of the agencies by local operating boards, therefore the client knows the community has looked at the planned spending, rather than blindly sending large donations to charities. Therefore, you will have these resources available to you to make sure your client’s donations are spent wisely each year.
Your clients (or their spouses) may be tied directly to a specific charity or cause and serve on boards for these charities or are looking for a worthwhile local charity to get involved in (spouses especially). This type of trust empowers donors to get specific results from specific charities in their own community. Therefore, professionals can promote this unique concept to their clients in social gatherings or charitable board meetings to encourage the creation of this type of trust, preferably during their lifetime (for income tax and estate tax advantages) or upon death (testamentary trusts).
Attorneys
Fees received for drafting of a unique trust arrangement.
Fees received for being named as the administrator and/or Trustee.
Trust Officers and IA’s
Asset management fees while charitable funds are held and invested prior to disbursement. If the funds are large enough, a charitable trust could be set up for long periods of time, during the investor’s lifetime or after their death or both.
Certified Public Accountants and Certified Financial Planners
Fee opportunities for consulting on the set up of this type of trust model.
Life insurance agents
Policy sales to donors that want to fund this type of charitable trust after their death with the proceeds of their life insurance in lieu of beneficiaries having to sell other non liquid assets to pay estate taxes.
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