Private Family Trust Company Workshop and Symposium - Agenda

Tuesday, February 9, 2016

PFTC Decisions: Do We Want a Private Family Trust Company? Assessing Impact, Creating and Operating a PFTC

Pre-Symposium Workshop - For Those Exploring Forming a PFTC

7:30 am - Registration & Breakfast

9:00 am - Welcome and Introductions

Program Hosts: Ruth Easterling, Managing Director, Member Services, PFTC Network Moderator; Mariann Mihailidis, Managing Director, PFTC Network Moderator

9:15 am - Primary Options for Pursuing and Achieving Strategic Family Aspirations

Moderator: Mariann Mihailidis, Managing Director, Family Office Exchange, PFTC Network Moderator

Speakers: John Duncan, Partner, Kozusko Harris Duncan, Miles Padgett, Partner, Kozusko Harris Duncan

This discussion will explore the aspirations of ultra-wealthy, strategic families what motivates them to consider a PFTC, as well as viable alternative structures. It will include in-depth analysis of:

Options available to these families
Distinguishing characteristics of each option
Circumstances when each option might best suit a particular family

10:15 am - Break

10:30 am - What Does it Really Mean to be a Trustee? How Well Can a Private Trust Company Satisfy the Requirements?

Speakers: Elizabeth Munson, President, The Rockefeller Trust Companies.; Richard Johnson, Partner, Waller Lansden Dortch & Davis, LLP

Trust industry veterans will provide participants with a candid assessment of the powers, responsibilities, duties and potential liabilities of a trustee and how a PFTC can effectively address them while meeting a family’s needs and goals. Discussion will include:

Suitability - How a family-owned and controlled trust company can be well-suited to exercising those powers and meeting those responsibilities through risk management, while remaining responsive to the family’s values, goals and trustee services requirements.
Support - Why PFTC families need not go it alone in fulfilling these requirements and the evolutionary impact of third-party resources including administrative, compliance and other technical support

11:30 am - Governing the PFTC: Owners and Directors

Speaker: Ryan Harding, Partner, McDermott, Will and Emery LLP

Once a family has decided to develop a PFTC and established its role, consideration can be given to structuring and managing the entity, including:

Identifying a proper ownership structure for a dynastic charter
Choosing a board; what to look for
Required/desired officer positions, and the qualifications for each
Required/Desired committees; how they function; choosing members
Accepting trusts; making trust decisions

12:15 pm - Lunch

1:30 pm - Choosing the Right PFTC Charter State—The Four Great State Building Blocks

Speaker: Miles Padgett, Partner, Kozusko Harris Duncan

The first step after deciding to form a PFTC is choosing the best home state for the family. This requires a balancing act that weighs convenience, trust and trust company laws, regulatory environment, quality of probate courts and trust bar, and tax environment. This session will identify and explain the Four Building Blocks of a great state for chartering a PFTC—and which states currently have them. Building blocks include:

Excellent trust laws
Tax laws and policies focused on economic development
Positive public policy contexts
Geographic convenience (location and interstate office authority)

2:30 pm - Turning the PFTC Idea into an Operating Trust Company

Speaker: Carleen Schreder, Partner/Owner, Levin Schreder & Carey, Ltd.

Moving from a theoretical concept into execution involves thoughtfully and comprehensively answering the 5 Ws and 1 H: When? What? Who? Why? Where? and How?

When should we begin the application and chartering process? And the family communication and approval process?

What services will our PFTC provide our family besides acting as trustee?
Who will staff our trust company?
Why may some activities be better kept in-house, while some are better outsourced?
Where do we execute and house operational documents?
How do we move from running a family office to a PFTC, insure the company and management, and otherwise develop a fiduciary risk management culture?

3:30 pm - Break

3:45 pm - Approval, Supervision and Examination of PFTC’s

Speaker: David Peterson, Compliance Officer, South Dakota Trust Company LLC

Depending on where the entity is chartered, a PFTC may receive a limited scope review once every three years or sooner based on its volume and type of fiduciary activities. As such, a veteran of trust company examinations and industry experts will provide insight into what to expect and “standard” examination procedures, including:

Chief criteria for charter application approval
State regulatory requirements for operations that PFTCs sometimes do not expect
Goals and focus of examinations
Examination process
Post-exam responsibilities of management

4:45 pm - Workshop Wrap-Up

6:00 pm - Dinner— Pre-Symposium Workshop participants, Symposium participants, speakers and guests are invited to join us for a reception and dinner on the Marine Deck of the Shelborne Wyndam Grand.

Wednesday, February 10, 2016

Optimization and Tools for Sustaining Generations

Symposium - For Those Currently Operating a PFTC and Pre-Symposium Workshop Participants

7:30 am - Registration & Breakfast

8:30 am - Welcome and Introductions

Program Hosts: Ruth Easterling, Managing Director, Member Services, PFTC Network Moderator; Mariann Mihailidis, Managing Director, Family Office Exchange, PFTC Network Moderator

8:45 am - PFTC Evolution: How PFTC Families Are Taking Advantage of Advancements

Moderator: Mariann Mihailidis, Managing Director, Family Office Exchange, PFTC Network.

Speakers; John Duncan, Partner, Kozusko Harris Duncan; Rick Fogg, Founding Partner and CEO, Chronicle Family Offices, LLC

Three continuums have evolved to make the PFTC more effective in supporting the multi-generational aspirations of families. FOX’s Mariann Mihailidis and industry pioneer John Duncan of Kozusko Harris Duncan will discuss:

The broad continuum of services that PFTCs can and are providing today
The equally broad range of support services available to PFTCs from commercial trust companies, investment advisers and other providers
The support PFCTs can provide families for family governance and family sustainability as trustees and family services

9:30 am - The Private Family Trust Company and Lessons Learned

Moderator: Ruth Easterling, Managing Director, Member Services

Speakers: Diane Malarik, COO, Moreland Management Company; James Ruddy, President and CEO, The Dillon Trust Company.

A family leader brings to life the advantages and disadvantages of their family PFTC and will guide participants through a history and assessment of their experience. The session will answer the question, “In retrospect, what would you have done more, better or differently in the design, development and operation of your PFTC?” What were unexpected opportunities presented by a family's PFTC as trustee, family services provider or player in family governance, succession or education.

10:30 am - Break

11:00 am - Burdens and Solutions for Operating a PFTC Distant from Home

Moderator: Domingo Such, Partner, Perkins Coie LLP

Speakers: Paul Cameron, President, Gamble Partners; Kim Kusilek, CFO, HRK Group, Inc

Operating a trust company in an away-from-home stateto take advantage of a superior PFTC environment presents unique challenges. This session explores the burdens, and ways families have limited them, incuding:

Implications of activities in locations for trust law and applicable laws, and which state's taxes apply t trusts and trust companies
Part or full time personnel in charter states
Bundling of fiduciary and other activities for charter state meetings use of affiliated and unaffiliated service providers

12:00 pm -1:15 pm - Lunch session: A Conversation about Human Capital Development in the PFTC

Moderator: Alexandre Monnier, President, Family Office Exchange

Speakers: James (Jay) E. Hughes, Jr., Esq., Wise Counsel Research; Hartley Goldstone, J.D., Wise Counsel Research

At our first Private Trust gathering in 1991, Jay Hughes identified the reasons for the emerging importance of Private Trust Companies. Jay’s perspective centered on the role the private trust governance framework could play in providing support for the human capital needs of beneficiaries who benefit from inter-generational wealth. In this session, Jay Hughes and Alexandre Monnier come together to revisit this conversation on the role of the Private Trust in doing more than institutionalizing family governance and the trustee process, by helping families create governance committees and processes that maximize human capital development within the family enterprise.

The important role of the external board members will be discussed and their ability to help manage change and cultural dynamics in the family.

Jay is co-author of Keith Whitaker and Hartley Goldstone's new book, "Family Trusts: A Guide for Beneficiaries, Trustees, Trust Protectors and Trust Creators" will add gloss to the conversation.

1:15 pm - Break

1:30 pm - Fiduciary Concerns, Regulatory Compliance and Internal Controls

Speaker: Rob Galloway, BakerHostetler; Joel Pineles, Partner, Director of Research and Client Operations, Eton Advisors L.P.

Family offices and PFTCs alike recognize the need for greater focus on managing risks. This session will provide a quick reminder of the sweep of financial institution laws and review needed controls, including:

Recognition and understanding of fiduciary duties
Dual controls and separation of responsibilities
Internal and external audits of adequacy of policies and procedures and their implementation
Selecting and monitoring third-party providers and trustee delegates
Confining activities to the proper locations
Agreed Upon Procedures, SAE 16 and other compliance audits

2:30 pm - BREAKOUTS:

Breakout 1 - Panel of State Regulators—Regulation and Exam Focuses Now and On the Horizon

Greg Gonzales- Tennessee, Spencer Culp- New Hampshire, Albert Forkner-Wyoming, David Peterson, Compliance Officer, South Dakota Trust Company LLC

Regulators from states with strong offerings for family trust companies will be on hand to un-shroud the mysteries of trust company risk management. In addition to direct questions from program attendees, regulators will address:

Current emphases of compliance exams and fiduciary controls audits
Current assessments of the relative risks of PFTC and retail trust companies
Cyber security and data privacy, AML, BSA and financial crimes
Vetting and controls over third-party providers to PFTCs
State innovations to support private trust company operations with minimized burdens

Breakout 2 - Identifying and Meeting Client Needs Within a Multi-Family Trust Company

Moderator: Matthew Tobin, Managing Director, South Dakota Trust Company LLC

Speakers: James Melvin, Managing Director, The Connable Office, Inc.; Jon Crow, Partner and Senior Client Advisor, Meristem

Some multi-family offices are converting to multi-family private trust companies to better serve their clients needing a trustee. This session addresses:

Can multi-family private trust companies be more than just an alternative structure for families not wanting the responsibility of managing their own PFTC?
Is there a role for multi-family private trust companies in supporting PFTC operations or filling holes in PFTC services offerings?

Breakout 3 - U.S. PFTCs and Foreign Trusts, Foreign Assets, and Non-U.S. Resident Family Members

Speaker: Andrew Stone, Partner, Kozusko, Harris, and Duncan

PFTCs serving families that may be exposed to non-U.S. tax regimes should understand the opportunities and pitfalls presented by foreign trusts and family trust beneficiaries residing outside of the United States. Topics will include:

Tax regime exposures and reporting requirements concerning foreign financial assets
Utilizing foreign trusts
Acting as a trustee of a "foreign trust"
Taking advantage of states with outstanding state trust laws and lack of state income taxes
Cross border residency

3:45 pm - Break

4:00 pm - Ask the Experts Q&A

Attendees will have a final opportunity to engage with experts and speakers on questions that remain on their minds and to further examine issues raised during the program.

4:30 pm - Symposium Closing Comments

4:45 pm - Adjourn

CPE Credit will be offered.