Family Trusts: A Guide for Beneficiaries, Trustees, Trust Protectors, and Trust Creators (Bloomberg)

**An insightful and practical guide to family trusts** __Family Trusts__ is a step-by-step guide for anyone involved in family trusts: trust creators, trustees, beneficiaries, and advisors. It will help families create and administer a culture that recognizes trusts as a gift of love. Marrying the practical and emotional aspects of family wealth, this book provides a hands-on primer that focuses on fostering positive relationships, and structuring the trust appropriately for the situation and the people involved. It tackles difficult topics with frank and honest discussion, from the first beneficiary meeting to working with addictions, and more. Written by a team of experts in family wealth, this information is becoming increasingly crucial to the successful execution of a trust; you'll learn what type of person makes the best trustee, how to be an excellent beneficiary, and the technical aspects that help you build a better trust from the very beginning. There's been a staggering increase in trustee/beneficiary litigation and hostility, but that doesn't mean it's inevitable. Plenty of trusts are running smoothly, with positive experiences on all sides. This book shows you how to set up your trust to succeed from the start, with step-by-step guidance and expert insight. * Express clear and thoughtful intent for the trust * Create a healthy and supportive culture * Select the right trustee, trust protector, and trust advisor * Take the time to prepare before initially meeting the beneficiary * Conduct a productive first meeting to set a tone for the relationship Historically, there has been little consideration given to the culture of trusts, and this oversight may be a key driver of the behavior that's becoming more prevalent. __Family Trusts__ explores the nature of these relationships, and shows you how to build a trust that retains the nature and spirit with which it was intended. Additional Praise for Family Trusts 7 Title Page 10 Copyright 11 Dedication 12 Acknowledgments 13 Foreword 14 Preface 20 What Can This Guide Do for You? 20 From Positive Stories to Action Steps 20 Note 25 Introduction 26 Principles 27 Notes 33 Part One: Introducing the Trustscape 35 Chapter 1: Navigation Works Better When You Have a Destination in Mind 36 Beyond the Thought Experiment 37 Questions for Reflection 39 Note 39 Chapter 2: The Trustscape 40 Introducing Your Trustscape 41 A Dynamic Tableau 42 A Closing Exercise 42 Note 43 Chapter 3: Some Key Terms 44 Chapter 4: Know Your Narratives 46 Depends Where You're Sitting 47 A Thirst for Education 48 Note 50 Part Two: The Players 51 Chapter 5: The Trust 52 A Short Description of a Long History 52 A Closing Exercise 54 Notes 56 Chapter 6: The Trustee 58 The Trustee 58 Choices 60 Chapter 7: Beneficiaries and Trust Creators 64 Beneficiaries 65 Trust Creators 69 Notes 75 Chapter 8: The Trust Protector and the Trust Adviser 76 Trust Advisers 76 Trust Protectors 77 Choices 78 Part Three: Building Great Relationships 81 Chapter 9: Considerations Prior to Accepting Appointment as Trustee 82 So—You've Been Asked to Serve as Trustee 83 Now for Some Homework 83 If You Are New to the Trustscape 84 Understanding the Technical Side 84 Almost There 86 A Final Step 86 Note 87 Chapter 10: Creating Preambles 88 Preambles and Purpose 88 “But My Trust Was Drafted 20 Years Ago!” 90 Themes and Schemes 90 Preambles Created by Trustees and Beneficiaries 91 Revisit the Preamble 92 As You Begin to Create Your Preamble 93 Note 94 Chapter 11: Action Steps Prior to the First Trustee-Beneficiary Meeting 95 If You Are a Trustee 95 If You Are a Beneficiary 97 Note 99 Chapter 12: Positive Events, Supportive Responses 100 Matching Mind-set to Task 100 Supportive Responses to Positive Events3 102 Play to Your Strengths 103 Notes 104 Chapter 13: Trustee-Beneficiary Meetings 106 Premeeting Checklists 106 If This Is the First Meeting 107 A Sampling of Agenda Items 109 An “Appreciative” Exercise 110 Note 111 Chapter 14: Requests for Distribution 112 “This Worked because I Knew Susan...” 113 The Request Process 114 Analysis of a Request 116 About Enhancement 118 Note 119 Chapter 15: Working with Addictions 120 Chapter 16: Trusts and Marriage 126 Prenuptials 126 Within Marriage 128 Second Marriages and Beyond 130 Notes 132 Chapter 17: Transitions 133 Solomon's Ring 133 This Too Shall Pass 133 Changing the Trust 134 Changing the Players 135 Coming to an End 137 Note 138 Part Four: A Comprehensive Model for a Humane Trustscape 139 Chapter 18: A Promise and a Challenge for Trust Creators 140 A Trust Creator's Challenge 140 First, an Exercise for Trust Creators 141 Note 142 Chapter 19: The Highest Duty of the Trustee and the Corresponding Responsibility of the Beneficiary 143 I Wrote These Great Docs, but My Clients Won't Sign... 144 The Highest Duty of the Trustee and the Corresponding Responsibility of the Beneficiary 145 Support for the Trustee 146 Support for the Beneficiary 147 Chapter 20: The Distribution Committee and the Office of the Beneficiary 150 Distribution Committee 150 The Office of the Beneficiary 153 Conclusion 156 Chapter 21: The Trustee and the Trust Protector Revisited 158 Which Cap's on Top?1 159 A Different Approach 160 Reconsidering the Institutional Trustee 161 Note 163 Appendices 164 Appendix 1: Sample Legacy Letter 165 Appendix 2: Sample Language Regarding Addiction 171 Appendix 3: The Distribution Committee 179 The Core Concept 179 Committee Members 180 Drafting Points 181 Appendix 4: Private Trust Companies 184 Definitions 184 PTCs versus Individual Trustees 184 Governance 186 Best Practices 187 Appendix 5: Family Trust Review 190 Purpose 190 Content 190 Process 190 Why Commission a Family Trust Review? 191 Opportunities for Commissioning a Family Trust Review 191 Note 192 Appendix 6: Reflections on the Often Unexpected Consequences of the Creation of a Perpetual Trust 193 Notes 203 About the Authors 205 Index 207 End User License Agreement 216