WORKING WITH RAYMOND JAMES TRUST Information For Attorneys

Transcription

1 WORKING WITH RAYMOND JAMES TRUST Information For Attorneys

2 FI RAYMOND JAMES TRUST If

3 INFORMATION FOR ATTORNEYS TABLE OF CONTENTS Page about our firm Requested Language and Scenarios... 6 Requested Language or Sample Amendment: Powers of Corporate Trustee Sample Amendment to Revocable Living Trust Irrevocable Life Insurance Trust Last Will and Testament Sample Codicil FI RAYMOND JAMES TRUST If PG 3

4 RAYMOND JAMES TRUST, N.A AND RAYMOND JAMES FINANCIAL Raymond James Trust, N.A. is a federally chartered trust company, with offices around the country. We administer and manage over $2 billion in assets for our clients and we have the full strength and resources of our parent company, Raymond James Financial (NYSE: RJF), behind us. Established in 1962 and a public company since 1983, Raymond James Financial provides service to more than 1.9 million individual and institutional accounts with total assets in excess of over $250 billion. Raymond James conservative management philosophy and its early recognition of the need for prudent financial planning have been core to the company since its inception. Raymond James has always encouraged clients to take advantage of all appropriate planning strategies so that they, their families and others they care for might benefit appropriately from their assets in the event of incapacity or death. The trust company shares that commitment to our clients and is dedicated to ensure that those clients have the tools they need to accomplish their goals. Raymond James Trust officers and support staff are always ready to address your concerns and answer your questions. Contact information appears on the back cover of this brochure. PG 4 FI RAYMOND JAMES INTERNATIONAL HEADQUARTERS If

5 WHY CHOOSE RAYMOND JAMES TRUST? This brochure has been designed to acquaint you with Raymond James Trust, N.A. and our requirements when we are named in a fiduciary capacity in your clients documents. When Raymond James formally decided to offer trust services, large banks dominated the business. Ownership of trust services by financial service companies was new. While traditional bank trust departments had a parochial orientation toward their business, and a rather narrow and proprietary view of investing trust assets, we focused on designing a framework that provides not only excellent personal service, but an investment architecture that allows for portfolios to be tailored to meet the needs of the individual trust and its beneficiaries. Our innovative framework offers timely and accurate accounting systems, trust administrators with strong academic and professional credentials and a demonstrated commitment to the highest standards of client service. Equally important, our customized investing approach makes a full array of investment choices and instruments available for use in our trust portfolios. Because we usually conduct the investment management portion of our business with affiliated entities, we need the inclusion of specific language in the document which permits us to buy and sell securities through our affiliates and to engage certain of our affiliates for the purpose of providing specialized assist management services. That language is included in this brochure to assist you in the development of your drafts. We do ask for the opportunity to review the document prior to execution so that we may identify any potential concerns. As we all know, it is much easier to take care of a concern in draft form rather than after execution. As a part of your client s professional team, we look forward to providing you and your client with an unusual degree of administrative expertise and experience, state-of-the-art accounting systems, investment customization, and the highest standards of client service. FI RAYMOND JAMES TRUST If PG 5

6 REQUESTED LANGUAGE AND SCENARIOS Raymond James Trust, N.A. (RJTNA) is the professional fiduciary service provider for all of Raymond James Financial and, therefore, seeks authority to bring all that Raymond James has to offer to bear for its fiduciary clients. The following language is designed to allow RJTNA to utilize these services through the delegation of its powers. Below are typical scenarios we encounter and the RJTNA language that would apply. If you can t find the appropriate language or have a question, please contact us at , ext Powers of Corporate Trustee: If RJTNA is to serve as Trustee (or Successor Trustee) in a new or an existing trust, the applicable RJTNA Language is Powers of Corporate Trustee shown on pages 7-9. SAMPLE amendment to Revocable Living Trust: If RJTNA is to succeed the current Trustee as Trustee of a Revocable Living Trust, the applicable RJTNA Language is Sample Amendment to Revocable Living Trust shown on pages IRREVOCABLE LIFE INSURANCE TRUST If RJTNA is to be named as Trustee for a new or existing Irrevocable Life Insurance Trust, the applicable RJTNA Language is Irrevocable Life Insurance Trust shown on page 13. Last Will and Testament: If RJTNA is to serve as Personal Representative/Executor or as Trustee in a new will, the applicable RJTNA Language is Last Will and Testament shown on page 14. Sample Codicil: If RJTNA is to serve as Personal Representative/Executor or as Trustee in an existing will, the applicable RJTNA Language is Sample Codicil shown on page 15. PG 6 FI REQUESTED LANGUAGE AND SCENARIOS If

7 POWERS OF CORPORATE TRUSTEE The following is language we request be used if we are to serve as Trustee (or Successor Trustee) in a new or existing trust. Should you have questions or concerns about this language, require a copy of our fee schedule, need additional copies of this guide or other materials, please contact us. REQUESTED LANGUAGE FOR POWERS OF CORPORATE TRUSTEE Raymond James Trust, N.A., as Trustee, shall have the following authority and powers in addition to the authority and powers granted by law and those enumerated in this Trust Agreement: (A) (B) (C) (D) (E) To invest and reinvest the Trust fund in its discretion. It is acknowledged that the Trustee is an affiliate of Raymond James Financial, Inc. and that when Trustee exercises such discretion, Trustee is authorized to engage the services of Raymond James Financial, Inc. or any of its affiliates and to compensate them from the Trust fund. Such services include, but are not limited to: investment management or advice with respect to investments in mutual funds, bonds, stocks and other securities or accounts offered or managed by affiliates; acting as broker/dealer to execute transactions at retail rates of commission and purchasing any securities underwritten and/or offered or issued by affiliated corporations, including those offered as a principal. To execute securities transactions without providing written confirmation thereof to any beneficiary and to execute securities transactions through any broker/dealer, including an affiliate of the Trustee, at normal retail rates of commissions. To employ and compensate from the Trust fund, investment counsel or advisors, custodians, brokers (including any who are affiliated with the Trustee), agents or attorneys, which compensation or fees shall not be charged against the compensation of the Trustee and shall be paid from the Trust. To vote directly or by proxy at any election or stockholder s meeting any shares of stock held hereunder, including shares of any mutual fund for which Trustee, or one or more of its affiliates, is the advisor. To hold any or all securities or property in Trust s name, in the name of the Trustee, or in the name of a nominee or a nominee of an affiliate, and in accounts or deposits administered in any location by Trustee or any affiliate of Trustee. In the event the same are held in its own name or in the name of a nominee or nominees, suitable designation is to be made upon the books and records of trustee that such securities or property are so held as part of any trusts hereunder. The Trustee may use an affiliate, even though the costs associated with a particular service rendered by an affiliate may not be the lowest and the trustee shall incur no liability as a result thereof. FI POWERS OF CORPORATE TRUSTEE If PG 7

8 ACCOUNTING AND COMPENSATION The Trustee shall render an accounting of receipts and disbursements at least annually to the Grantor, if living, otherwise to each beneficiary who is sui juris, or to the guardian of the beneficiary if the beneficiary is not then sui juris, for such beneficiary s share. The Corporate Trustee shall be reimbursed for all reasonable expenses incurred in the administration of the Trust and may retain payment for its fees as such fees are adopted in its schedule of fees by the Board of Directors, in effect when such compensation is payable. The Grantor understands that affiliates of the Raymond James Trust, N.A. may receive payments from investments including but not limited to stock, bonds and mutual funds, in which the Trustee has invested, including payment for investment advisory or management fees, brokerage fees and commissions, and payments for other administrative services. The Grantor agrees that these payments will not offset such fees as the Corporate Trustee may receive from the Trust property as an expense of administration. Trustee shall be entitled to receive, out of the income and principal of the Trust fund, compensation for its services hereunder, to be determined from time to time by the application of the schedule of fees published by Trustee and in effect at the time such fees are charged for trusts of similar size and character, and in the event that Trustee shall be called upon to render any extraordinary services, it shall be entitled to additional compensation therefore. Receipt of a Fee Schedule, effective on the date of this instrument is acknowledged. It is further acknowledged that the Board of Directors may, from time to time adjust, its Schedule of Fees and services and that this Trust shall be subject to such adjustment. REVIEW OF PRIOR TRUSTEE ACTIONS No Successor Trustee hereunder shall be under any duty or responsibility to audit or review the actions or accountings of any predecessor Trustee and any Successor Trustee hereunder is expressly relieved and discharged from any liability or responsibility from any actions or failure to act of such Predecessor. RESIGNATION The Trustee shall have the right to resign thirty days (30) after providing written notice to the grantor or beneficiary of such intent to resign. PG 8 FI POWERS OF CORPORATE TRUSTEE If

9 ENVIRONMENTAL ANALYSIS The Trustee shall have the right to use and expend the trust income and principal to (1) conduct or cause to be conducted environmental investigations of the trust property, including environmental audits, assessments, site monitoring, laboratory analyses, testing, title histories, aerial photographs, public and private records reviews, and any related inquiries arising out of or in any way related to liability or claims under federal, state or local environmental statutes, regulations, ordinances, requirements, demands of government authorities or policies or under common law ( environmental laws ); (2) take appropriate remedial action to contain, clean up or remove any actual or threatened environmental hazard, including a spill, release, discharge or contamination, and conduct site restoration work on the trust property and notify the appropriate federal, state or local authorities either on its own accord or in response to an actual or threatened violation of environmental laws; (3) institute legal proceedings, claims and demands concerning environmental hazards, contamination or condition of the trust property, or contest, pay, compromise, settle or comply with legal proceedings, claims, demands, orders, penalties, fines and damages brought or imposed by federal, state or local government authorities or by a private litigant; and (4) employ agents, consultants and legal counsel to assist with or perform the above undertakings or actions. Any expenses or costs incurred by the trustee under this subparagraph may be charged against income or principal as the trustee shall determine. FI POWERS OF CORPORATE TRUSTEE If PG 9

10 SAMPLE AMENDMENT TO REVOCABLE LIVING TRUST The following sample amendment contains the language we request be used if we are to succeed the current Trustee as Trustee of a Revocable Living Trust. Should you have questions or concerns about this language, require a copy of our fee schedule, need additional copies of this guide or other materials, please contact us. SAMPLE AMENDMENT TO REVOCABLE LIVING TRUST WHEREAS, on (Date), I executed a revocable trust agreement ( Agreement ) establishing the ( Trust ); and WHEREAS, pursuant to the provisions of Article of the Agreement, I reserve the right to alter, amend, revoke or modify such Agreement; and WHEREAS, I wish to amend the Agreement by naming Raymond James Trust, N.A. to succeed ( Current Trustee ), as Trustee, NOW THEREFORE, I, this day of, 20 (Date), hereby: First, Amend the Agreement to appoint Raymond James Trust, N.A. as Trustee to act in place and instead of the Current Trustee. Second, Direct the Current Trustee transfer the Trust s assets as outlined by instructions, annexed hereto, to Raymond James Trust, N.A.. Third, Amend Article by adding the following subparagraphs thereof numbered, to provide that: Raymond James Trust, N.A., as Trustee, shall have the following authority and powers in addition to the authority and powers granted by law and those enumerated in this Trust Agreement, the following: (A) To invest and reinvest the trust fund in its discretion. It is acknowledged that the Trustee is an affiliate of Raymond James Financial, Inc. and that when Trustee exercises such discretion, Trustee is authorized to engage the services of Raymond James Financial, Inc. or any of its affiliates and to compensate them from the Trust Fund. Such services include, but are not limited to: investment, management or advice with respect to investments in mutual funds, bonds, stocks and other securities or accounts offered or managed by affiliates; acting as broker/dealer to execute transactions at retail rates of commission and purchasing any securities underwritten and/or offered or issued by affiliated corporations, including those offered by the affiliates as a principal. (B) To execute securities transactions without providing written confirmation thereof to any beneficiary and to execute securities transactions through any broker/dealer, including an affiliate of the Trustee, at normal retail rates of commissions. PG 10 FI SAMPLE AMENDMENT TO REVOCABLE LIVING TRUST If

11 (C) To employ and compensate from the Trust fund, investment counsel or advisors, custodians, brokers (including any who are affiliated with the Trustee), agents or attorneys, which compensation or fees shall not be charged against the compensation of the Trustee and shall be paid from the Trust. (D) To vote directly or by proxy at any election or stockholder s meeting any shares of stock held hereunder, including shares of any mutual fund for which Trustee or one or more of its affiliates is the advisor. (E) To hold any or all securities or property in Trust s name, in the name of the Trustee, or in the name of a nominee or a nominee of an affiliate, and in accounts or deposits administered in any location by Trustee or any affiliate of Trustee. In the event the same are held in its own name or in the name of a nominee or nominees, suitable designation is to be made upon the books and records of trustee that such securities or property are so held as part of any trusts hereunder. The Trustee may use any affiliate, even though the costs associated with a particular service rendered by an affiliate may not be the lowest and that the trustee shall incur no liability as a result thereof. The Trustee shall have the right to use and expend the trust income and principal to (1) conduct or cause to be conducted environmental investigations of the trust property, including environmental audits, assessments, site monitoring, laboratory analyses, testing, title histories, aerial photographs, public and private records reviews, and any related inquiries arising out of or in any way related to liability or claims under federal, state or local environmental statutes, regulations, ordinances, requirements, demands of government authorities or policies or under common law ( environmental laws ); (2) take appropriate remedial action to contain, clean up or remove any actual or threatened environmental hazard, including a spill, release, discharge or contamination, and conduct site restoration work on the trust property and notify the appropriate federal, state or local authorities either on its own accord or in response to an actual or threatened violation of environmental laws; (3) institute legal proceedings, claims and demands concerning environmental hazards, contamination or condition of the trust property, or contest, pay, compromise, settle or comply with legal proceedings, claims, demands, orders, penalties, fines and damages brought or imposed by federal, state or local government authorities or by a private litigant; and (4) employ agents, consultants and legal counsel to assist with or perform the above undertakings or actions. Any expenses or costs incurred by the trustee under this subparagraph may be charged against income or principal as the trustee shall determine. Fourth, Amend Article by adding the following subparagraphs numbered, to provide: The Trustee shall render an accounting of receipts and disbursements at least annually to the Grantor, if living, otherwise to each beneficiary who is sui juris, or to the guardian of the beneficiary if the beneficiary is not then sui juris, for such beneficiary s share. The Corporate Trustee shall be reimbursed for all reasonable expenses incurred in the administration of the Trust and may retain payment for its fees as such fees are adopted in its schedule of rates by the Board of Directors of the Corporate Trustee and in effect when such compensation is payable. PROTECT YOUR FAMILY FI SAMPLE AMENDMENT TO REVOCABLE LIVING TRUST If PG 11

12 The Grantor understands that affiliates of the Raymond James Trust, N.A. may receive payments from investments including but not limited to stock, bonds and mutual funds, in which the Trustee has invested, including payment for investment advisory or management fees, brokerage fees and commissions, and payments for other administrative services. The Grantor agrees that these payments will not offset such fees as the Corporate Trustee may receive from the Trust property as an expense of administration. Trustee shall be entitled to receive, out of the income and principal of the Trust fund, compensation for its services hereunder, to be determined from time to time by the application of the schedule of fees published by Trustee and in effect at the time such fees are charged for trusts of similar size and character, and in the event that Trustee shall be called upon to render any extraordinary services, it shall be entitled to additional compensation therefore. Receipt of a Fee Schedule, effective on the date of this instrument is acknowledged. It is further acknowledged that the Board of Directors may, from time to time adjust, its Schedule of Fees and services and that this Trust shall be subject to such adjustment. Fifth, Delete subparagraph of Article of the Agreement in its entirety and adopt in lieu thereof the following subparagraph: Sixth, As of the Succession Date the Current Trustee shall thereafter function only as contemplated by this Agreement and or as it may reasonably determine to be necessary or advisable in order that the trustee succession contemplated herein may be accomplished in an orderly and expeditious manner. Seventh, I acknowledge that Raymond James Trust, N.A. shall not be liable at any time by reason or in consequence of any acts, omissions or defaults with respect to the administration of the Trust by the Current Trustee. Raymond James Trust, N.A. shall be responsible for the administration of such assets only from the date it actually receives such assets and acknowledges receipt of the assets delivered to it by and from the Current Trustee. Raymond James Trust, N.A. shall have no responsibility to conduct an examination in the acts or omissions of acts of the Current Trustee. Eighth, The Trustee shall have the right to resign thirty days (30) after providing written notice to the grantor or beneficiary of such intent to resign. PG 12 FI SAMPLE AMENDMENT TO REVOCABLE LIVING TRUST If

13 IRREVOCABLE LIFE INSURANCE TRUST The following is language we request be used if we are to be named as Trustee for a new or existing Irrevocable Life Insurance Trust. Should you have questions or concerns about this language, require a copy of our fee schedule, need additional copies of this guide or other materials, please contact us. REQUESTED LANGUAGE FOR IRREVOCABLE LIFE INSURANCE TRUST The Trustee may, to the extent the assets of the trust permit, pay the premiums which may become due and payable under the provisions of any policy of insurance forming a part of the trust estate. If the assets of the trust are insufficient to allow payment of any premiums, the Trustee shall be under no obligation to pay the premiums which may become due and payable under the provisions of any policy of insurance forming a part of this trust estate. In addition, the Trustee shall be under no obligation to make certain that such premiums are paid by the Grantor or others, or to notify any persons of the nonpayment of such premiums, and it shall be under no responsibility or liability of any kind in the event such premiums are not paid, except that it may apply any dividends received on any policy to the payment of premiums thereon. Upon written notice, at any time during the continuance of this trust, that the premiums due upon any policy are in default, or that premiums to become due will not be paid by the Grantor, the Trustee or any other person, the Trustee, in its sole discretion, may apply any cash values attributable to any policy to the purchase of paid-up insurance or of extended insurance, or may borrow upon any policy for the payment of premiums due thereon, or may accept cash values of any policy upon its forfeiture. If the Grantor (or the insured party, if Grantor is not the insured party) becomes totally and permanently disabled, within the meaning of any policy forming part of the trust estate, and as a result thereof the payment of premiums or any of them shall during the pendency of such disability be waived, the Trustee, upon receipt of such knowledge, shall promptly notify the insurance company which has issued any policy, and shall take any and all steps necessary to make such waiver of premium provision effective, but the Trustee shall have no duty to inquire, investigate, or determine whether the Grantor or the insured party has become totally or permanently disabled. In the event that insurance contracts of any kind are or become a part of the trust estate, the Trustee shall be governed in its administration of such contracts by Section (2)(a) of the Florida Statutes, and the Trustee intends to delegate the duties described therein by providing written notice to the beneficiaries as provided in Section (3). PROTECT YOUR FAMILY FI IRREVOCABLE LIFE INSURANCE TRUST If PG 13

14 LAST WILL AND TESTAMENT The following is language we request be used if we are to serve as Personal Representative/Executor or as Trustee of a new will. Should you have questions or concerns about this language, require a copy of our fee schedule, need additional copies of this guide or other materials, please contact us. REQUESTED LANGUAGE FOR LAST WILL AND TESTAMENT I appoint Raymond James Trust, N.A. as (Personal Representative/Executor) of this Last Will and Testament. Raymond James Trust, N.A., as (Personal Representative/Executor), shall have the following authority and powers in addition to the authority and powers granted by law and those enumerated in this Last Will and Testament: (A) To invest and reinvest the assets of my estate in its discretion. It is acknowledged that the (Personal Representative/Executor) is an affiliate of Raymond James Financial, Inc. and that when (Personal Representative/Executor) exercises such discretion, (Personal Representative/ Executor) is authorized to engage the services of Raymond James Financial, Inc. or any of its affiliates and to compensate them at customary retail levels from the estate assets. Such services include, but are not limited to: investment management or advice with respect to investments in mutual funds, bonds, stocks and other securities or accounts offered or managed by affiliates; acting as broker/dealer to execute transactions and purchasing any securities underwritten and/ or offered or issued by affiliated corporations, including those offered as a principal. (B) To vote directly or by proxy at any election or stockholder s meeting any shares of stock held hereunder, including shares of any mutual fund for which (Personal Representative/Executor), or one or more of its affiliates, is the advisor. (C) To hold any or all securities or property in the estate s name, in the name of the (Personal Representative/Executor), or in the name of a nominee or a nominee of an affiliate, and in accounts or deposits administered in any location by (Personal Representative/Executor) or any affiliate of (Personal Representative/Executor). In the event the same are held in its own name or in the name of a nominee or nominees, suitable designation is to be made upon the books and records of (Personal Representative/Executor) that such securities or property are so held. PG 14 FI LAST WILL AND TESTAMENT If

15 SAMPLE CODICIL The following is language we request be used if we are to serve as Personal Representative/Executor or as Trustee in an existing will. Should you have questions or concerns about this language, require a copy of our fee schedule, need additional copies of this guide or other materials, please contact us. SAMPLE CODICIL WHEREAS, on (Date), I executed a Last Will and Testament; and WHEREAS, I wish to amend my Last Will and Testament by naming Raymond James Trust, N.A. as (Personal Representative/Executor), NOW THEREFORE, I, this day of, 20 hereby amend my Last Will and Testament dated by striking Article and substituting in its place the following: I appoint Raymond James Trust, N.A. as (Personal Representative/Executor) of this Last Will and Testament. Raymond James Trust, N.A., as (Personal Representative/Executor), shall have the following authority and powers in addition to the authority and powers granted by law and those enumerated in this Last Will and Testament:: (A) (B) (C) To invest and reinvest the assets of my estate in its discretion. It is acknowledged that the (Personal Representative/Executor) is an affiliate of Raymond James Financial, Inc. and that when (Personal Representative/Executor) exercises such discretion, (Personal Representative/ Executor) is authorized to engage the services of Raymond James Financial, Inc. or any of its affiliates and to compensate them at customary retail levels from the estate assets. Such services include, but are not limited to: investment management or advice with respect to investments in mutual funds, bonds, stocks and other securities or accounts offered or managed by affiliates; acting as broker/dealer to execute transactions and purchasing any securities underwritten and/or offered or issued by affiliated corporations, including those offered as a principal. To vote directly or by proxy at any election or stockholder s meeting any shares of stock held hereunder, including shares of any mutual fund for which (Personal Representative/Executor), or one or more of its affiliates, is the advisor. To hold any or all securities or property in the estate s name, in the name of the (Personal Representative/Executor), or in the name of a nominee or a nominee of an affiliate, and in accounts or deposits administered in any location by (Personal Representative/Executor) or any affiliate of (Personal Representative/Executor). In the event the same are held in its own name or in the name of a nominee or nominees, suitable designation is to be made upon the books and records of (Personal Representative/Executor) that such securities or property are so held. PROTECT YOUR FAMILY FI SAMPLE CODICIL If PG 15

16 Raymond James Trust N.A. Main Office 880 Carillon Parkway I St. Petersburg, FL I Toll-Free: , Ext I raymondjamestrust.com Chicago Trust Office 8770 West Bryn Mawr Avenue, Suite 1300 I Chicago, IL I Toll-Free: Florida East Coast Trust Office 200 East Broward Boulevard, Suite 1220 I Ft. Lauderdale, FL I Toll-Free: Orlando Trust Office 200 Colonial Center Parkway, Suite 170 I Lake Mary, FL I Toll-Free: Tacoma Trust Office 1498 Pacific Avenue, Suite 500 I Tacoma, WA I Toll-Free: International Headquarters: The Raymond James Financial Center 880 Carillon Parkway I St. Petersburg, FL I Toll-Free: I raymondjames.com 2011 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC 2011 Raymond James Financial Services, Inc., member FINRA/SIPC RJT /11 LA