Family Trusts. Keith Whitaker

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      Family Trusts

      ADDITIONAL PRAISE FOR FAMILY TRUSTS

      “In Chap. 1 of Loring and Rounds: A Trustee's Handbook, the authors remind its readers that the Anglo-American trust is an ancient principles-based regime that will survive into the 21st century only so long as it is administered by persons of principle. As a practical matter, what does that mean? Family Trusts does an admirable job of answering that question, and in prose that will be readily understandable not only to the trust professional but also to the family member new to the ‘trustscape.’”

– Charles E. Rounds, Jr., Professor of Law, Suffolk University Law School

      “At long last – a clear and concise guidebook for those who don't understand the complexities of family trusts! The three authors offer practical strategies and sample documents for many trust challenges – why to set up a trust, how to select a good trustee, and how to be a good trustee or beneficiary. Start with the chapter that applies to your case, and you will be compelled to read the other related chapters. And grantors need to read it all, before they sign or revise their estate plans.”

– Sara Hamilton, Founder and CEO, Family Office Exchange

      “A trust is a powerful tool that too often turns beneficiaries into trust-fund babies, creates resentments and rifts among family members, and ultimately deforms many a family's legacy. Family Trusts helps wealthy families and their advisors avoid those outcomes by building what they call a ‘comprehensive model for a humane trustscape.’ No grantor should plan their estate, no beneficiary should accept their next check, and no advisor should meet with their next client without first reading this book.”

– Angelo Robles, Founder & Chairman, Family Office Association

      “The authors tell us that 80 % of beneficiaries view trusts as a burden, yet over 90 % of private wealth is tied-up in some form of trust by the time of the third generation. Hence these trusts become ‘arranged marriages’ between the beneficiaries and the trustees. This insightful guide walks one through how to best prepare for that ‘meteor moment’ by focusing on the creating the best culture for these new arrangements to not only survive, but flourish.”

– Thomas R. Livergood, Founder & CEO, The Family Wealth Alliance

      “Jay has outdone himself once again! Family Trusts combines his and his co-authors' many years of trust wisdom with a practical and theoretical guide to both creating and administering trusts with an important emphasis on family values. Hartley, Jay, and Keith's eminent qualifications to author such a book are powerfully displayed throughout. The book is a must read for all trust professionals!”

– Al King III, Co-CEO, South Dakota Trust Company LLC

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Family TrustsA Guide for Beneficiaries, Trustees, Trust Protectors, and Trust CreatorsHartley GoldstoneJames E. Hughes Jr.Keith Whitaker

      Cover Images: Detail from The Creation of Adam, 1511 © Michelangelo Buonarroti/GettyImages; Texture paper © Malsveta/iStockphoto

      Cover Design: Wiley

      Copyright © 2016 by Hartley Goldstone, James E. Hughes Jr., and Keith Whitaker.

      All rights reserved.

      Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

      Published simultaneously in Canada.

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      ISBN 9781119118268 (Hardcover)

      ISBN 9781119118299 (ePDF)

      ISBN 9781119118282 (ePub)

      DEDICATION

      To Loyce, Ben, and Jon

– Hartley Goldstone

      To Patricia M. Angus, Richard Bakal, and Joanie Bronfman, my fellow journeyers for nearly 30 years on the path to change beneficiaries' views of their trusts from burdens to blessings, and to Jacqueline Merrill, who put her arm through mine.

– James E. Hughes Jr., Esq.

      To my mother, who trusted me, and to my father, who taught me to be trustworthy.

– Keith Whitaker

      ACKNOWLEDGMENTS

      As authors, we would like to acknowledge the colleagues, clients, friends, and family members with whom we have discussed the challenges and the opportunities inherent in family trusts. Thank you all. In particular, we would like to thank the following colleagues who took the time to read this book in manuscript and offer their comments: Patricia Angus, Tim Belber, Tim Brown, Paul Cameron, Greg Curtis, Mary Duke, John Duncan, Bryan Dunn, Rick Fogg, George Harris, Barbara Hauser, Steven Hoch, Holly Isdale, Dennis Jaffe, Don Kozuscko, Isabel Miranda, Miles Padgett, Ellen Perry, Scott Peppet, Christian Stewart, John A. Warnick, and Scott Winget. Bill Messinger earned our gratitude for his contribution to the interview on trusts and addiction in Chapter 15 and the model language regarding addiction found in Appendix 2. Similar thanks go to Rick Fogg for the sample legacy letter found in Appendix 1. We are grateful to Vanderbilt University's Owen Graduate School of Management for giving us the opportunity to share early versions of some of the content and exercises found in this book with a tremendous group of students in June 2015. Our deep thanks and appreciation go to the Haynes Family Foundation, the Hemera Foundation, the FRED Fund, and other individual donors who have supported our research and writing. Any insights found herein are the shared bounty of our friends; any infelicities