Understanding Asset Ownership and Transfers: Core Skills for Trusts & Estates Practice

James A. Gillis | Law Office of James A. Gillis

My practice is and has always been focused on estate planning and estate and trust administration—wills, trusts, and estates.

I help clients create efficient and well-designed estate plans, customized to reflect their intentions. One chief concern of estate planning is how assets will be transferred in the future. Therefore, I advise clients on how their assets should be titled and how their beneficiaries should be designated to ensure the plan works as intended. This includes preparing and recording deeds for real estate nationwide.

Once an estate plan has been established, I advise and assist clients who are interested in gifting to reduce transfer taxes and accomplish other goals, such as seeing their beneficiaries enjoy assets now. Assets can be transferred to beneficiaries outright and free of trust, or in continuing trusts designed to suit the purpose of the transfer, including grantor trusts, life insurance trusts, and other types of trusts. Funds can alternatively be loaned to beneficiaries with appropriate documentation and minimum interest.

Chris is also passionate about advancing the legal profession through leadership and advocacy. He is the Secretary of the American Bar Association’s Science and Technology Section and serves in the leadership of numerous bar organizations, including the Giles Rich American Inn of Court, the Federal Circuit Bar Association, Intellectual Property Owners Association, and the American Intellectual Property Law Association. He is also active in the Leadership Council on Legal Diversity (LCLD) and a member of Steptoe’s Diversity and Inclusion Committee, where he has served as the leader of Steptoe’s Latin American Lawyers Affinity Group.

Beyond IP, Chris maintains a robust pro bono practice where he represented criminal defendants before the US Court of Appeals for the Fourth Circuit, K-12 students facing educational injustices under the Individuals with Disabilities Education Act (IDEA), and federal employees under the employment discrimination and civil service laws. His federal employee representations have included successful representations of employees afflicted with psychiatric disabilities and brain injuries, including the Havana Syndrome, as well as whistleblower cases on behalf of federal employees who have served our country in the US Department of Labor, Department of State, Department of the Navy, and the Patent and Trademark Office.

Chris is a former elected official and public-school board member and has served on several nonprofit boards in both DC and Northern Virginia.

Mark R. Parthemer | Glenmede

Mark R. Parthemer, JD, AEP, ACTEC Fellow, is Glenmede Trust Company’s National Chief Wealth Strategist and Florida Regional Director. He is responsible for developing and communicating Glenmede’s position and strategy concerning tax, estate planning and fiduciary matters pertinent to clients and their advisors, as well as cultivating growth and operations of Glenmede throughout Florida.

Mr. Parthemer also is Adjunct Faculty, University of Florida College of Law Graduate Tax Program.

Prior to joining Glenmede, Mr. Parthemer served as Managing Director for TIAA and Managing Director and Senior Fiduciary Counsel for Bessemer Trust, working with ultra-high-net-worth clients to deliver sophisticated tax and estate planning advice and provide tailored guidance. His previous roles include law partner at Duane Morris, LLP, and Senior Tax professional at PricewaterhouseCoopers.

Mr. Parthemer is a Fellow of the American College of Trusts Estates Counsel and an Accredited Estate Planner. He is on the Board of Directors of the Florida Bankers Association, and Immediate Past President of its Trust and Wealth Management Division. He is also Group Vice Chair for the American Bar Association, RPTE Trusts and Estate Practice Group. He earned a Bachelor of Arts and a Bachelor of Science from Franklin & Marshall College and Juris Doctor from The Dickinson School of Law, Penn State University.

Mr. Parthemer is a nationally recognized speaker and a frequently published author. He is an editor and columnist for both the Journal of Financial Services Professionals and the ABA’s Probate & Property magazine. He is often quoted on tax and estate planning matters in publications such as the Wall Street Journal, CNBC, Barron’s, Bloomberg Tax, Crain Currency, and Kiplinger’s.

Session I – Funding a Revocable Trust | 1:00pm – 2:00pm

• Transferring real estate
  • Acceleration
  • Title insurance
  • Local recording and transfer taxes
  • General warranty deed
  • Revocable transfer-on-death deed
  • Other state law considerations
• Transferring interests in closely held businesses
  • Shareholder
  • Partnership
  • Operating agreements
  • Tax elections, including S-election
  • Post-mortem business controls
• Transferring other assets, including retirement accounts
  • Beneficiaries under SECURE Act
  • Practical considerations

Break | 2:00pm – 2:10pm

Session II – Pro Tips for Transferring Assets into Irrevocable Trusts | 2:10pm – 3:10pm

• Practical strategies including for non-traditional, “hard to transfer” and alternative investment assets, such as private equity interests
  • Valuation procedures
  • Assignment versus re-registration
  • Transfer restrictions
• Considerations based on recipient trust types
  • Life Insurance Trusts (ILITs)
  • Grantor Retained Annuity Trusts (GRATs)
  • Directed trusts
  • Dynasty trusts (irrevocable, multi-generational trusts)
• Tax and reporting considerations
  • Gift tax returns (Form 709)
  • Ensuring compliance with IRS requirements for alternative assets, such as schedule K-1 coordination
  • Potential deemed gift issues if transfer restrictions reduce asset value after the transfer
• Liquidity planning
  • Funding trusts with illiquid assets presents challenges in covering expenses, annuity payments in GRATs, and taxes for non-grantor trusts
  • Options include maintaining side accounts, combining liquid and illiquid assets, or structuring sales to the trust
• Administrative realities
  • Ensuring alignment between transfer documents and trust provisions
  • Coordination with custodians, insurance carriers, and fund managers who may have concerns about trust ownership
  • Common oversights include neglecting to update stock certificates, not amending operating agreements, failing to admit assignees, and failing to coordinate state UCC filings
• Practice tips to minimize mistakes
  • Develop checklists for each asset class
  • Confirm record holders, consent requirements, and income distribution processes for trusts