Our Speaker Today:

Barry Givner

Executive Vice President & Senior Trust Officer

Coconut Grove Bank

(305) 860 - 2756

“Trust Services & Money Management – Tipping the Scales in Your Favor”

During his career, Givner has held leadership positions at various organizations including Bank of America (Barnett Bank’s Trust Company/NationsBank), and Merrill Lynch Trust Company. Immediately prior to joining Coconut Grove Bank, Givner was the Fiduciary Services Manager for SunTrust Bank’s South Florida Region in Miami where he oversaw Trust Administration, Trust Compliance and Business Development for Trust Administrative Officers.

Givner holds a BBA in Accounting from the University of Miami and has taken advanced studies at the Cannon Trust School. Givner is on the President’s Board for St. Thomas University and is a member of the Estate Planning Council of Greater Miami. In addition, he is a member of the Foundation of Jewish Philanthropies of the Greater Miami Jewish Federation’s Professional Advisory Committee. Givner also supports the Transplant Foundation, Inc. where he is a former board member.

Most frequent mistakes:

1-   Improper or no documentation

o   Many people have no will, or it’s inadequate to meet their wishes

o   Must be in your name only – if it’s joint, it doesn’t pass

o   May not save taxes

o   None or inadequate built in asset protection

§  Divorce

§  Spendthrift, etc

o   Beneficiaries that have died or fallen out of favor

o   May be subject to cost and publicity of probate – public record by requesting the file.  Trust avoids public disclosure if there is no litigation.

o   May need to provide for special needs beneficiaries.

Probate costs are for the re-titling of the assets – there are specific rates for attorneys and for executors. 

2-   Improper distributions

·        Distributes assets too early

·        Lose asset protection

·        No protection for the spendthrift

·        May leave asset to a minor

·        Give money to someone out of favor

3-   Ownership

·        Assets owned with right of survivorship will not pass by operation of will or trust

·        One spouse may not own enough assets in his/her own name to take advantage of credit shelter. 

·        If you die this year, no estate tax, but the tax law sunsets the exemption from estate tax is 3.5 million. 

·        Corporate Trustees, like Coconut Grove, is a money manager

·        Life insurance trust, tax free to your heirs

4-   Liquidity

·        None or little liquid assets to settle the estate.

·        May have to sell assets

·        Perhaps at discount to pay estate taxes within nine months

·        Life insurance, a principle supplier of liquidity to estates, may be owned incorrectly and increase the tax liability.

5-   Qualified Plans

·        Improper of no beneficiary destinations

·        No planning to force children to take “stretch” distribution

·        Qualified dollars taxed twice.

·        Estate tax

·        Income tax on balance

·        Frequently only leaving 30% to 40% for their heirs.

6-   Don’t investigate best options.

·        Many opportunities to reduce estate taxes

·        Do I have a taxable estate?

·        Annual, lifetime, and generation skipping gift tax exclusion

·        Gifts to charity- philanthropy makes economic sense

·        Using advanced discounted gifting techniques –

·        Family limited partnerships

·        Qualified personal residence  - GRITs – to get your home out of your estate, rent or buy back from children

·        Charitable lead and charitable remainder trusts – trust pays charity and on death reverts back to estate.  Gift to trust pays you an annuity and upon death the money goes to charity.

7-   The MOST serious problem of all is PROCRASTINATION!

You might need planning if…

You don’t have a will.

The bank’s trust department gets paid as an investment agent, as the trustee.  Managing portfolios is where the bank gets paid.  Bank can act as a fiduciary with trust powers so for the same price someone can manage your money we can be a trustee or co-trustee with other family members.  Corporate Bank Trust Dept. are separate from the bank.  Assets are protected from bank failure.  The market value of the assets determine the fee.  Between 1% up to 2% of the complete value of the investments.  We look at non-volatile investments.

All trust dept are audited by the federal reserve, internally, state.  Rule of Law from the state statutes. 

Siblings usually don’t have investment management skills and they might not follow the terms of the trust. The Bank’s Trust Committee reviews the wishes of the grantor and if they cannot determine what the grantor wanted, they ask the courts.