WEALTH MANAGEMENT Rights and Responsibilities of Charitable Beneficiaries in Death-Related Administration of Estates and Trusts May 24-15, 2018 Fredrick B Weber Sr. Vice President Estate Settlement Services Practice Lead fw14@ntrs.com (312) 444-4702 1
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If only it were this simple 4
This is more like it 5
Notice 6
Finding and Collecting Assets 7
Types of Assets 8
Asset Valuation 9
Dissemination of Information 10
Transparency 11
Assessing Liabilities 12
Paying Expenses 13
Income and Estate Tax 14
Wills vs. Trusts 15
Types of Gifts: Specific, Pecuniary and Residuary 16
Beneficiary s Right to Information 17
Charitable Gifts 18
Timing of Distributions 19
Charitable Beneficiaries and Corporate Fiduciaries 20
Charitable Beneficiaries and Corporate Fiduciaries 21
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WORLD-CLASS RESOURCES TO SERVE NONPROFIT ORGANIZATIONS Our Mission Statement for Servicing the Nonprofit Community (Tax-Exempt Institutions): To enhance our clients financial well-being, to build on the value that they have already created and to serve as the trusted investment advisor to the nonprofit community. Our Core Values for more than 128 years are : Service, Expertise and Integrity. Our Experience with Nonprofits Northern Trust has an extraordinary level of client service based on 128 years of experience working with nonprofits Foundation & institutional Advisors is our dedicated boutique practice focusing exclusively on servicing the investment requisites of the nonprofit community We work with a select group of nonprofits: Foundations Endowments Academic Health Care Religious NGOs and Humanitarian Other Nonprofits We are a team of professionals with extensive experience serving on the boards & finance committees of nonprofits - offering us a first hand appreciation of your investment requisites, challenges and mission What We Provide Nonprofits We offer objective advice and a portfolio design that is individually tailored to each client s goals High-touch boutique customer service with direct contact to your dedicated senior investment advisor Education sessions available to your staff and investment committee (e.g., investments, governance, fiduciary responsibility ) A collaborative Partnership with our nonprofit clients and their other advisors (e.g., Law, CPA ) Custody, ESG/SRI Capabilities, planned giving, philanthropic advisory and banking services We annually award substantial financial support and volunteer services to our nonprofit clients and within the community that we live and work 24
YOUR NORTHERN TRUST TEAM Brett Rees President Mid Atlantic br17@ntrs.com 202-303-1706 Wealth Strategists Private Banking Investment Management Fiduciary, Tax & Wealth Planning Michael H. Orfini Stephanie Bennett Paul Veith Logan Winn SVP, Sr. Wealth VP, Banking SVP, Regional Portfolio SVP, Senior Wealth Strategist Relationship Advisor Advisor Advisor mho2@ntrs.com srb19@ntrs.com mv97@ntrs.com lhw2@ntrs.com 202-303-1716 202-303-1720 Dutch Miller Michael R. Marsh SVP, Regional Director Nonprofit Advisor mrm12@ntrs.com 202-303-1722 Parhot Noor Private Banking Officer pn82@ntrs.com 202-303-1727 202-303-1702 Brian Heilman SVP, Sr. Portfolio Manager bch4@ntrs.com 202-303-1707 202-303-1709 SVP, Sr. Trust Officer rdm3@ntrs.com 202-303-1719 2 nd Vice President Associate Trust Advisor akk17@ntrs.com 202-303-1721 Alexandra Champion Rebecca Chang VP, Client and Community Engagement rm13@ntrs.com 202-303-1717 Erin Cahill Marketing & Wealth Strategist Associate eec7@ntrs.com 202-303-1776 Jon Gossens Associate Portfolio Manager jwg2@ntrs.com 202-303-1714 Cord Dannen VP, Sr. Portfolio Manager, Non profilt cd200@ntrs.com 202-303-1718 Alex S. Tanouye Sr. Trust Advisor ast4@ntrs.com 202-303-1727 Kathy Kirley Trust Officer KAK14@NTRS.COM 202-303-1713 Kenneth Muse Investment Associate krm7@ntrs.com 202-303-1704 25
THANK YOU!
BIOGRAPHY Fredrick B. Weber Estate Settlement Services Practice Leader 312.444.4702 fw14@ntrs.com Say not that you know another entirely till you have shared an inheritance with him. -Johann Kaspar Lavater German Theologian, 1741-1801 EXPERIENCE Before he joined Northern Trust in 2011, Fred spent seven years handling death-related administration of estates and trusts for another corporate fiduciary. Prior to becoming a professional fiduciary, Fred spent six years in private law practice as a trust, estate and probate attorney, and he also worked as a planned giving officer for a large public charity. Between college and law school, Fred spent three years in Washington, DC working as a legislative aide for the late U.S. Senator Paul D. Wellstone (D-MN). EDUCATION Fred received his B.A. in International Relations and History from the University of Minnesota and his J.D. from DePaul University College of Law. CREDENTIALS Fred is a Senior Vice President and is licensed to practice law in Illinois. Fred is a member of the Chicago Bar Association where he is a past chair of the Trust Law Committee. He is also a member of the Chicago Estate Planning Council and the Professional Advisory Committee of the Jewish Federation of Metropolitan Chicago. INTERESTS Fred is a happy husband, a proud dad of three boys, a die-hard baseball fan, a music lover, a theatre goer and a Minnesota native who loves to bike, hike, read, run and travel, but not always in that order. EXPERTISE As the Estate Settlement Services Practice Leader, Fred manages the team that handles all aspects of death-related administration of estates and trusts when Northern Trust acts as executor and/or trustee for a client who has died. Fred speaks often on topics related to death-related administration of estates and trusts. He has presented to the Illinois Institute for Continuing Legal Education (IICLE), the American College of Trust and Estate Counsel (ACTEC), the Chicago Bar Association, the Chicago Estate Planning Council, the American Bankers Association National Trust School, the American Bar Association and the Association of Fundraising Professionals. He is also an adjunct professor in the LLM Program for Tax and Employee Benefits at The John Marshall Law School where he developed and teaches a course on death-related administration of estates and trusts. COMMUNITY INVOLVEMENT Fred is a long-time board member and past president of Shalva: A Response to Domestic Abuse in Jewish Homes. He also served as a trustee and vice president of Anshe Emet Synagogue in Chicago. 3 THINGS PEOPLE ASK ME When do I get my money?!?! The estate owes HOW much tax?!?! What do you mean they left EVERYTHING to charity?!?!
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WEALTH MANAGEMENT Rights and Responsibilities of Charitable Beneficiaries in Death-Related Administration of Estates and Trusts May 4, 2018 Fredrick B Weber Sr. Vice President Estate Settlement Services Practice Lead fw14@ntrs.com (312) 444-4702 29