2020

We will survey of the predominant traits of the generations represented in today’s estate planning process (the Greatest, Boomer, Gen X and Millennial generations); examine changes in marriage and family structures, changes in family governance, the increasing cultural diversity of today’s families, artificial reproductive practices, and assumptions about life expectancy and mortality; explore approaches to estate planning and wealth allocation, modifications of trust design, and issues in the allocation of fiduciary responsibility which are better aligned with the needs of modern families; explore issues associated with increased longevity; and examine the ways in which attorneys and fiduciaries can assist families in building more effective protocols for family collaboration and decision making.

This will be a review of recent legislative, regulatory, and judicial developments related to estate and trust planning and administration. Special attention will be paid to the impact of the CARES Act and subsequent related legislation, the SECURE Act, marital planning, estate inclusion, valuation, generation-skipping tax, charitable planning, federal and state fiduciary income taxation, and insurance.

Special Purpose Entities (SPE’s) have found favor with modern estate planning attorneys, and the benefits of an SPE are gaining momentum. This presentation will feature an overview of South Dakota’s legal requirements for the creations and use of Special Purpose Entities and the many advantages of using this structure. The presentation will also highlight some concerns and areas to be aware of when working with an SPE, as well as unresolved legal issues that may present risk for trustees.

Panel participants who are investment professionals will discuss current market conditions, social investing, investing for individuals vs. trusts, and portfolio diversification.

Moderated by Patrick Goetzinger, members of the Task Force will discuss the work of the Task Force in shaping South Dakota trust law for the upcoming 2021 legislative session and review new trust laws that became effective in 2020. By Executive Proclamation, the Task Force’s goal is to establish and maintain South Dakota’s stature as the premier trust jurisdiction in the United States. The Task Force, the only one of its kind in the nation, is comprised of representatives from the trust industry, recognized as experts in their field, and ex-officio appointments from state government agencies. The panel is a cross section of the Task Force membership. A portion of the discussion will be dedicated to a Q&A session with attendees.

In this presentation, Michael Sneeringer will discuss estate planning tools and techniques for amicably disposing of family businesses. He will begin with the psychological role in the founding generation’s dealings with disposing of the business, in light of the sometimes future generation’s reluctance to continue the business. He will discuss whether the use of life insurance, private annuities, intentionally defective trusts and/or GRATs may be appropriate vehicles to dispose of family businesses. He will describe the importance of valuation issues for financial and tax purposes especially in light of today’s record low AFRs and 7520 rates. He will describe how to efficiently craft a buy-sell plan with family members and key employees. Finally, he will discuss the pitfalls of planning for the incapacity of the founding generation, and how an outside manager might assist with the family dynamic in a business succession plan.