Just the FACTs

A recording of a complimentary 50-minute webinar with Subject Matter Expert, Daniel Smith

What are the types and uses of Trusts? How do I start the conversation with my clients? What questions do I ask?  How do I answer their questions? Is there a crash course I can take? 

Daniel Smith’s webinar isn’t a crash course, but it is certainly a good starting point. Join Daniel as he offers an abbreviated look into the world of Trust Services. He will also share how to learn more about this area of a client’s portfolio.  

Want to bring this to your firm? Contact our Business Solutions team at businesssolutions@cannonfinancial.com

Key Takeaways from the Webinar:

1. Introduction to FACT:
   The FACT (Financial Advisor Course on Trust) is a customizable course designed to blend technical knowledge of trust and estate planning with conversational competency. The course aims to help financial advisors develop their ability to engage clients in discussions about trusts and estate planning, while still covering the essential technical aspects.
2. Customization & Flexibility:
   FACT has evolved from a traditional two-day workshop to a flexible format that can be delivered in various time frames, from 50 minutes (as in this webinar) to two hours or two days. The course is tailored to meet the specific knowledge level of the advisors and the needs of their firms.
3. Conversational Competence Focus:
   Advisors need to not only understand the technical aspects of estate planning but also communicate effectively with clients. The course emphasizes practice through role-playing and conversations to strengthen this competency.
4. Three Stages of Estate Planning:
   • Active Lifetime: Involves income taxation, gift tax returns, and managing investment accounts.
   • Incapacity: Trusts, powers of attorney, and other tools like revocable living trusts kick in when clients are unable to manage their own affairs.
   • At Death: Covers filing final income tax returns, estate and gift tax returns, and managing asset transfers.
5. Trusts vs. Wills: Daniel explained the differences between using a will and a revocable trust at various life stages, discussing the pros and cons of both. A trust offers seamless management during incapacity and death, whereas a will needs to go through probate and may only take effect at death.
6. Ownership & Estate Planning:
   Daniel emphasized understanding how property is titled (sole ownership, joint tenancy, trust ownership, etc.) and how those ownership forms impact the estate plan. This often reveals gaps or errors in a client’s estate plan that can be fixed early on.
7. Taxation: The webinar discussed how estate, gift, and income taxes affect estate planning decisions. Daniel stressed that tax considerations should come second to understanding the client’s overall objectives.
8. Practical Scenarios & Role-Playing: Advisors were encouraged to practice explaining trust and estate planning concepts to clients in ways that are simple and engaging. This includes using analogies like "piggy banks" to explain the $11.7 million tax-free exclusion and $15,000 annual gift exclusion.
9. Client Relationship Building: Estate planning opens the door to deeper conversations with clients about their total financial situation, family dynamics, and long-term goals. Advisors can strengthen client relationships by thoroughly understanding their needs and objectives.