Introduction

The Certified Trust and Financial Advisor (CTFA) credential is awarded by the American Bankers Association (ABA) to professionals who demonstrate comprehensive knowledge and expertise in trust services, estate planning, and wealth management. This 5-day intensive training course is designed to provide participants with the foundational skills and in-depth knowledge required to excel in the CTFA exam and serve as trusted advisors in managing personal wealth, estates, and trusts. From understanding trust administration to navigating tax laws, this course prepares participants to meet the challenges of working with high-net-worth individuals and families, while ensuring compliance with legal and regulatory standards.

Course Objectives

By the end of this training, participants will:

1. Understand the key concepts of trust and estate planning, including fiduciary duties, asset management, and trust administration.
2. Gain proficiency in the legal and regulatory frameworks that govern trusts, estates, and wealth management.
3. Develop the ability to advise clients on estate planning, tax strategies, retirement planning, and investment management.
4. Learn how to manage fiduciary responsibilities and provide objective, comprehensive wealth management advice.
5. Be fully prepared to take the CTFA certification exam and advance their career as a trust and financial advisor.

Who Should Attend?

This course is ideal for:

• Financial advisors, trust officers, and wealth managers looking to obtain the CTFA credential.
• Professionals involved in trust and estate administration, tax planning, and investment management.
• Attorneys, accountants, and other financial professionals who wish to expand their knowledge of trust services and estate planning.
• Individuals seeking to transition into trust and financial advisory roles or enhance their expertise in trust management.

Day 1: Introduction to Trusts, Estates, and Fiduciary Responsibilities

• Session 1: Overview of the CTFA Certification

  • CTFA exam structure and eligibility requirements
  • Key competencies: Trust administration, estate planning, fiduciary duties, tax planning
  • The role of a Trust and Financial Advisor in managing wealth, estates, and trust services

• Session 2: Types of Trusts and Their Uses

  • Understanding different types of trusts: Revocable vs. irrevocable, living trusts, charitable trusts, special needs trusts, etc.
  • The purpose of a trust: Estate planning, asset protection, tax reduction, charitable giving
  • How trusts are established, administered, and terminated
  • Key concepts: Grantor, trustee, beneficiary, and the role of each in trust management

• Session 3: Fiduciary Duties and Ethical Responsibilities

  • Defining fiduciary duties: Duty of care, duty of loyalty, duty to act in the best interests of beneficiaries
  • Understanding the legal and ethical obligations of fiduciaries
  • Managing conflicts of interest and ensuring impartiality
  • The role of compliance and ethics in trust and estate administration

Day 2: Estate Planning and Taxation

• Session 4: Estate Planning Fundamentals

  • The role of estate planning in managing wealth and ensuring smooth asset transfer
  • Key estate planning tools: Wills, trusts, powers of attorney, advance healthcare directives
  • Understanding the probate process and avoiding probate through trust planning
  • The role of an advisor in estate planning: Collaborating with attorneys and accountants

• Session 5: Taxation of Trusts and Estates

  • Understanding tax implications for trusts: Income taxes, estate taxes, gift taxes, and capital gains taxes
  • Overview of the federal estate tax system and exemption thresholds
  • Tax advantages of different types of trusts: Charitable remainder trusts, grantor retained annuity trusts (GRATs), etc.
  • Estate tax planning strategies and minimizing tax liabilities for clients

• Session 6: Gift and Estate Tax Planning

  • Understanding annual gift exclusions, gift tax exemptions, and lifetime exemptions
  • Techniques for reducing estate taxes: Use of lifetime gifts, charitable contributions, and trusts
  • Tax strategies for high-net-worth clients: Strategies to avoid estate tax traps
  • Planning for future generations and multigenerational wealth transfer

Day 3: Trust Administration and Investments

• Session 7: Trust Administration and Responsibilities

  • The process of trust administration: Acceptance, accounting, distributions, and reporting
  • Trustee responsibilities: Managing trust assets, making distributions, handling tax returns
  • Key administrative issues: Recordkeeping, reporting to beneficiaries, and dealing with disputes
  • Reviewing and understanding trust documents: Reviewing trust agreements, powers of trustees, and beneficiary rights

• Session 8: Investment Management for Trusts

  • Investment goals for trusts: Preservation of principal, income generation, and growth
  • Understanding asset allocation and diversification in trust management
  • Evaluating risk tolerance and investment strategies in trust portfolios
  • Role of the trust advisor in selecting and monitoring investment managers

• Session 9: Trust Distributions and Taxation

  • Determining distributions from trusts: Income vs. principal distributions and their tax consequences
  • The impact of distributions on beneficiaries and taxes owed
  • Tax strategies for minimizing the tax burden of trust distributions
  • Legal considerations in making trust distributions in accordance with the trust document

Day 4: Retirement Planning, Risk Management, and Client Relationships

• Session 10: Retirement Planning Strategies

  • Types of retirement accounts: IRAs, 401(k)s, and other employer-sponsored retirement plans
  • Retirement planning strategies: Tax deferral, Roth conversions, and income generation in retirement
  • How to integrate retirement plans with overall estate planning
  • Required Minimum Distributions (RMDs) and managing tax implications for retirees

• Session 11: Risk Management in Trust and Estate Planning

  • Identifying and mitigating financial, legal, and tax risks in trust and estate planning
  • The role of insurance in wealth protection: Life, disability, long-term care, and liability insurance
  • Managing liquidity needs in trust portfolios and estate plans
  • Planning for incapacity: Power of attorney, healthcare directives, and asset protection

• Session 12: Building Client Relationships

  • Effective communication with clients about their estate and financial plans
  • Managing client expectations and providing objective financial advice
  • Creating a collaborative approach with attorneys, accountants, and other professionals
  • The importance of building trust and maintaining long-term client relationships

Day 5: Review, Case Studies, and Exam Preparation

• Session 13: Case Studies in Trust and Financial Advisory

  • Analyzing real-world case studies of trust administration, estate planning, and financial advising
  • Key lessons from trust and estate management: Successes, challenges, and ethical considerations
  • Understanding client profiles and how to customize financial strategies for different needs

• Session 14: CTFA Exam Review

  • Review of key concepts covered in the CTFA certification exam: Trust administration, estate planning, tax planning, fiduciary duties, investment strategies
  • Practice exam questions and discussion of answers
  • Tips and strategies for taking the CTFA exam: Time management, question analysis, and exam readiness
  • Final Q&A session to address remaining questions and reinforce learning