• Blended Families Present Special Wealth Challenges
• The Right Trustee Creates Security for the Aged and their Families
• Idaho Trust Clients Report Superior Levels of Satisfaction

Over the last thirty years divorce rates have doubled in the United States. Estimates suggest that 50 percent of marriages do not last, but people are still marrying - and remarrying. Consequentially, clients are likely to be a part of such relationships and advisors are likely to be working with clients of blended families in their wealth-based practice.

While there are no specific legal documents that apply exclusively to blended families, traditional wealth and estate planning strategies must be handled in different ways. One of the major considerations in estate planning for blended families is the relationship between the children of the first marriage and the step-parent. This is especially true if the children were older at the time of the marriage. The relationship may be friendly, but not parental. With the death of the biological parent, strong emotions can be triggered such as anger and greed - and can lead to litigation.

Whether a blended couple works with a corporate advisor, an attorney, a financial planner, or a combination thereof, it is essential to spend time explaining the function of each estate document. It is also important to give each spouse the opportunity to describe what he or she believes the plan will accomplish.

Idaho Trust, a private national trust bank, encourages clients to use their TriVantage service for estate planning. With TriVantage, the client's legal or accounting professional stays involved - at no additional cost to the client - to assist in strategic planning and provide ongoing wealth counsel. The bank also provides Wealth Counseling to ensure that families are communicating and understand how to handle wealth responsibly for multiple generations.

With blended families, estate planning objectives must be addressed in greater detail and more attention must be given to special situations: What if the stepmother needs more money than first expected? What if the stepchild/trustee and the stepmother disagree on the investment strategies for the assets in a trust?

The answers to basic estate planning questions are not that complicated when dealing with a parent and his or her biological children. However, they need to be considered in a different context when dealing with a blended family. Different strategies include:

• A prenuptial agreement
• Revocable Living Trusts
• Asset Registration
• Qualified plans
• Lifetime Gifting

There are also several types of Trusts to consider to achieve the best strategy for a blended family. Trusts to consider include:

• Family or Unified Credit Shelter Trust
• Qualified Terminable Interest Trust (QTIP)
• Marital Unitrust (MUT)
• Irrevocable Life Insurance Trusts
• Charitable Remainder Trust (CRUT)

Idaho Trust specializes in wealth management including complex estate planning. When preparing the right strategy for a blended family's estate they recommend a carefully drafted trust as a key component. A trust plays a much greater role for a blended family because it is the only place where a number of issues can be addressed.

Its first purpose is to recognize some previously unacknowledged feelings the children may be experiencing. In preparing a trust for a blended family, good planning is essential and requires that the biological parent be very precise about his or her children's wishes for items that came from the original marriage. The division of property in the trust may well set the tone for what will follow and should not be overlooked as a strategy to bring about continued harmony. This attention to detail will make each family member feel as if he or she has been personally considered. It will also give the trustee the guidance needed to fulfill his or her responsibilities without undue pressure from any family member.

Thomas Prohaska, the Founder of Idaho Trust, recommends that blended families in particular think about using an outside trustee. In fact, Idaho Trust often acts as trustee for many blended families. He underscores that issues may arise when families choose one child to act as trustee, which can pit the two sides of the family against each other. As an unbiased third party, a corporate trustee such as Idaho Trust can speak and act from the perspective of the deceased spouse/parent and can clarify wishes and direction, and may well be able to defuse a difficult situation.

It can be hard to discuss this situation with a couple that feels they have a caring and loving blended family. Nonetheless, the documents in an estate plan must assume the worst in order to protect both sides adequately. Only then can all parties feel that their best interests are being represented fairly - and that the decedent had each party's best interest at heart.

Idaho Trust is the perfect partner to work with Attorneys and clients to plan and implement wealth strategies for blended families. Idaho Trust is highly skilled in estate planning and best of all, they are impartial professionals. Providing neutral assistance cuts down on the chance of conflict and litigation and leaves the door open for supportive relationships after the death of a key family member.

Having an outstanding Trustee in charge of a personal or family Trust is critical for long-term financial goals - and often the security of the beneficiaries. Many people don't realize their Trustees are unreliable until it is too late and they run into trouble.

Allison Meyer, an Idaho Trust client based in California, was confronted with this exact situation. Allison's father had set up a trust in West Virginia. When he passed away Allison's mother, who was the beneficiary of the trust, moved to California to be with her daughter. Allison and her mother quickly discovered out that the local bank responsible for the trust was not able to handle their needs. Allison found an Attorney to help rectify the problem. The Attorney also recommended that Allison consider Idaho Trust as the Trustee.

"I spoke with several of the Idaho Trust staff during the interview process," states Allison. "They were so intelligent, really knew investing and Trusteeship, and had such a high level of personal services. I was impressed and transferred the Trust over."

Another large benefit with Idaho Trust is that Allison's Attorney has stayed involved as an outside advisor, ensuring the Trust is well managed. This service, known as TriVantage®, puts the client's best interests first. "My Attorney and I have quarterly meetings focused on making sure the Trust is on track financially," adds Allison. "My position is that my wealth team is there to ensure the value of the Trust and protect the assets."

Security and Peace of Mind
With a fiduciary account, clients need to know that their funds are safe and that sound investment practices will be combined with excellent service.

According to Allison Meyer, "Trust is a huge issue - the one word summary of what we were looking for. With Idaho Trust we know that follow through happens. We feel secure. In fact, I don't have to blink and they are there and have accomplished what was requested. One really gets the best of both worlds at Idaho Trust - personal service and fast response time combined with outstanding investment professionals."

"One of the best things is that my mother feels very confident now about her future," concludes Allison. Originally she was very nervous and wondered if the Trust was safe, if her monthly funds would come through, and how she would pay her medical expenses. "After working with Idaho Trust she has developed complete trust and confidence in her financial security. That kind of peace of mind is so important at my mother's age."

May 31, 2002 - Annual reviews at Idaho Trust have yielded important client information. Customers place high value on receiving individual support, having their own Attorneys or CPAs assess their Wealth Plan progress, and the convenience of online access to their financial data.

"I love that me or my husband can call our Idaho Trust representative any time," states Janice Good, an Idaho Trust investment client. "She is always available to help us and answer questions."

TriVantage® Sets New Standards
With Idaho Trust, clients get TriVantage® service, which has been cited as a major improvement over the standard offerings at other national investment and trust providers. TriVantage brings clients' independent investment team, legal advisor, and other wealth related professionals together. Each professional stays involved to guide clients through financial, tax, and estate planning.

"We have an Attorney, Monty Donahew, who has seen us through challenging times and we really trust him," explains Janice. Monty is part of Idaho Trust's Wealth Advisor Network ^SM (WAN) and recommended the bank to Janice and her husband Dale. Monty explained to Janice and Dale how he would stay involved as an independent advocate and help review progress on their Wealth Plan and money management decisions.

"Our Attorney meets with us quarterly to see how our Wealth Plan is proceeding. We make sure we are on track and comfortable with our financial decisions and time line. Monty reviews Idaho Trust's progress too, but really it is so much more. We work as a team to make sure that our life plan unfolds correctly. This is really about peace of mind," states Janice.

Web Services Provide Convenience
Janice Good, and many other Idaho Trust clients find Idaho Trust's new Web site extremely helpful. "All we need is online," states Janice. "We have continuous access to all our accounts as well as useful documents. In fact, the website and tools are wonderful."

Idaho Trust President, Thomas Prohaska, reported being delighted with the client feedback. "Our TriVantage service is key to our vision of putting the clients' best interests first," said Mr. Prohaska. "We are also very pleased that our Web site and services are meeting, and even exceeding, our clients' needs."

"We are very happy with Idaho Trust," concludes Janice Good. "They were the clear choice when compared to other services and they made it easy to get started. We get convenience and outstanding service, excellent money management, and online access to our accounts. Best of all we get to have our trusted Attorney as part of our wealth team."