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Truist Perspectives magazine Ensure your legacy Learn the 4 pillars of a successful estate plan. Protect yourself online Our expert explains how to shield your assets from cyberfraud. Champions of philanthropy 3 NASCAR drivers inspire by giving back to the community. December 2021
Table of
contents
06
COVID-19 has spurred
Planning for a bright many of us to think about
a long-term-care plan.
and purposeful future
The winter holidays are all about togetherness. They offer us a chance to gather
around the table with friends and family, celebrate, and reflect on our many blessings.
And as we approach the end of 2021, it is also an opportunity to consider what
matters most to us, to take stock of what drives us and gives us a sense of purpose,
and to consider how we can deliver on that purpose in the year ahead.
In this issue, Erich Holmes, senior vice president of our Business Transition Advisory
Group, recommends taking some time for a year-end systems check to reflect on your
core values and “reevaluate what you truly want to accomplish this coming year for
yourself, your business, your family, and your community.” I couldn’t agree more.
Safeguarding what’s meaningful to you
The end of the year is also a time to step back and make sure your assets are well
protected. You can’t be too careful when it comes to protecting yourself online.
In “Protect yourself from cybercrime,” learn about the latest sophisticated, often
targeted cyberfraud activities you might encounter, according to our cybersecurity
expert. And more importantly, find out how to protect yourself, your family, and your
business.
Another way to secure your legacy for future generations is with an airtight estate
plan, as senior wealth strategist Jacqueline Parks explains in “The 4 pillars of a
successful estate plan.” In our feature story, we delve into the importance of creating
a will and trust that are customized to your needs, as well as having open, transparent
discussions with your family about your plans.
Family and community
The holidays bring out the best in us: a sense of gratitude and a spirit of giving. Our
holiday gift guide offers six great ideas for unique experiences you can give to friends
and family—all of which can be enjoyed from the safety of home. And finally, in
“Beyond the winner’s circle,” read how three NASCAR racing stars and their families
are living their purpose and embodying the holiday spirit by giving back to their
communities in some truly amazing ways.
We wish a happy, healthy holiday season to you and your family,
04 06 12
Pulse Insights Feature
Joe Thompson
News and Cybersecurity, The benefits
Chief Wealth Officer tactical tips from leading through of a customized,
Truist Financial Corporation the Truist team. a reset, and more. flexible estate plan.
18 20 22
Community Lifestyle Inspire
Three NASCAR Our unique gift Words that
stars give back to guide to virtual offer a fresh
their communities. experiences. perspective.
Investment and Insurance Products:
4 | Truist Perspec tives Copyright © 2021 Truist Financial Corporation, 214 N. Tryon St., Charlotte, North Carolina, 28202. Find us online at Truist.com/wealth. December 2021 | 3
• Are not FDIC or any other Government Agency Insured • Are not Bank Guaranteed • May Lose Value
Pulse: News Pulse: Expertise
What’s new from Truist
The new 2022 Annual Outlook, a purposeful Our take:
read, and a strategic media partnership. Tips from the Truist team
The end of the year is a perfect time to assess the past 12 months and to plan ahead for
The Annual Outlook is here what 2022 will bring. Right now, you have a lot on your mind, including the COVID-19
The Truist 2022 Annual Outlook offers realistic-yet-positive expert analysis on what you can expect variants, political turmoil, and possible tax code changes. We turn to our Truist advisors
in the year to come from strong equities, the somewhat volatile bond market, and the continually for wisdom amid uncertainty and complexity.
growing economy. For a deeper understanding and key takeaways, download the full PDF.
Prepare for uncertainty
There is always uncertainty in the markets, even during bull Hilary Kosloske
market periods. Today, we feel uncertainty surrounding Senior Managing Director/
A prosperous partnership COVID-19, the threat of inflation, possible tax hikes, and the Financial Advisor
political landscape—domestic and worldwide. As we head into Winston-Salem, NC
Truist is excited about a content partnership with Bloomberg Media.
the new year, it is important to remind clients that the market
Bloomberg proudly states that it aims to “change the world for the better” will have continued volatility. Each client has a unique comfort
through its products and its people. It’s not surprising, then, that Truist is level; I work with my clients to develop a proactive instead of
partnering with Bloomberg Media to create a series of in-depth articles aimed reactive investment strategy, openly discussing how much
at the Wealth sector under the banner of “The Winding Road to Prosperity.” market exposure they are comfortable with during turbulent
times in the market.
Topics include:
• Splurging and saving • Building wealth equality
• The lure of alternative investments • Tax anxieties and strategies Do a year-end systems check
I would encourage everyone to reflect on your core values and Erich Holmes
Check out this exceptional content today across the Bloomberg ecosystem, Senior Vice President/
reevaluate what you truly want to accomplish this coming year
including digital, mobile, and print. Business Transition
for yourself, your business, your family, and your community.
Engage stakeholders and trusted advisors in these discussions Strategist
so they are aligned with your vision. In addition to assessing Business Transition
your current financial state (cash flow needs, estate planning Advisory Group
documents, etc.), assess your nonfinancial state—health, Cleveland, OH
The story of Truist education, happiness, relationships— to understand where you
are currently as well as what barriers may be standing in the
The book “On Purpose” shows how organizations can uncover their purpose and drive positive change. way of achieving your goals.
As the leaders of two financial insti- their companies, their impact on those
tutions based in the South, Kelly King communities would be even greater. Consider life insurance
of BB&T and Bill Rogers of SunTrust
connected in many ways. But what How they made that vision a reality is As we consider planning strategies, we cannot ignore the Rajeev Dhillon
the focus of “On Purpose,” a new book importance of asset protection. More clients who are seeking Wealth Advisor
really lit a spark between them was
their shared purpose: that financial about the origin story of Truist, one of tax-efficient solutions are turning to life insurance because of New York, NY
institutions should change people’s lives the world’s first purpose-driven banks. the tax-deferred growth in a life insurance policy, and also for
for the better. It shows how decisions become easier potential living benefits during the life of a policy. The cash
when made through the lens of purpose. value derived in a life insurance policy can be distributed during
Both believed that future success would As Truist CEO Bill Rogers says, “Purpose a lifetime, often tax-free, and used as an alternative to other
belong to companies and organizations doesn’t lend itself to Monday morning retirement solutions. Speak to your wealth advisor for more
willing to disrupt tradition—in particular, quarterbacking.” Each chapter ends with information and to ensure it’s in line with your overall planning
banks that pursued the purpose of lessons on purpose that readers can goals and objectives.
building better lives and communities. apply to their lives, work, family,
And they realized that by combining or community.
To learn more about how This communication does not, nor should it be construed to, provide tax advice. Tax consequences resulting from transactions described herein are dependent on the particular facts and circumstances.
to find your purpose, read No direct or indirect recipient of this communication should rely on any portion of this communication for the protection from penalties related to any tax. Likewise no direct or indirect recipient of this
the “On Purpose” e-book communication shall promote, market, or recommend to another party any transaction or matter addressed herein.
or listen to the audiobook.
Any comments or references to taxes herein are informational only. Truist and its representatives do not provide tax or legal advice. You should consult your individual tax or legal professional before
taking any action that may have tax or legal consequences.
4 | Truist Perspec tives Hilary Kosloske, Registered Representative, Truist Investment Services, Inc. December 2021 | 5
Insights: Family Insights: Family
3 keys to an effective Here’s how each of these
categories can guide
long-term care plan your planning.
1
Long-term care planning can help preserve your legacy Choice: Keep your options open
and ensure you can live out your life in an atmosphere Location questions
There are more choices to make than you might
where you have choice, dignity, and control. think (see sidebar). “When you’re facing an emer-
to consider
gency, expediency takes precedence over rationality,” There are many layers to long-term
says Beard. And the sooner you start planning, the more care discussions. Here are a few
options you’ll have. Many companies now offer hybrid issues related to the question of
plans, such as a universal life insurance policy with an where you want to receive care:
The pandemic has decades. According to Genworth.com, 70% of LTC rider—which pays out unused LTC funds as a death
caused us to come people over the age of 65 will need LTC support at benefit—but these are costlier as you age. Your financial Do I prefer in-home care,
to terms with the some point, and the likelihood increases with age. advisor can help you explore levels and types of care, as assisted living, or a
unexpected. More The cost of a room in a nursing home has risen 62% well as how you’ll pay. private room?
people have been since 2004 and is being driven higher by pandemic
2
spurred to update issues like rising demand, labor shortages, and
Dignity: Make your own decisions
o I want to be able to room
D
vital documents regulatory changes for care facilities. In terms of with my spouse if we need
such as wills, powers of dollars, a private room in a nursing home ran about
attorney, and living wills—open- $106,000 for the year 2020, but if you consider When you’ve spent your whole life being indepen- different levels of care?
ing up the conversation to an what that money could have made if invested, the dent—and having others depend on you—it can be
often-overlooked topic: net cost becomes even greater. difficult to let go of the reins. Long-term care planning ow close do I want to be
H
long-term care (LTC).
It’s not (just) a matter of money
allows you to make your own decisions in advance, so to my family? Am I willing
you’re not relying on someone else. It also allows you to to move?
It may be difficult to imagine Harms notes that most of her clients still choose to control the dignity with which you are treated when you
needing 24/7 care at some point, says self-fund LTC, but Kristin Beard, regional director of need care. Documents outlining your long-term care plan
Amanda Harms, senior vice president and Advice and Planning for Truist Wealth, asserts that can help ensure your wishes will be met.
hat services do I need to
W
trust advisor for Truist Wealth. That’s why it’s finances aren’t always the most important part of maintain a sense of home
3
helpful to talk with your financial advisor before this conversation. “Money isn’t what most people or community?
broaching the topic with family. “No matter what talk about,” she says, when she asks them, “If you’re Control: Know what you’re willing to give up
long-term care plan you choose,” she says, “it’s my going to need long-term care, what do you want that
job as your advisor to help you figure out what’s
These are just a few
to look like?” Being in a long-term care facility has always involved
important to you and how to get there.” things you can cover
“People’s concerns really revolve around three giving up some measure of control, but that has
been magnified over the past two years. Now, concerns
in long-term care
For Harms, the biggest hurdle is often convincing things: choice, dignity, and control—and the
clients that they need a plan. For this, she turns to intersection of these,” she says. “That’s the richest like “Will I be safe? Can I have visitors?” are right up there planning with your
Genworth’s Cost of Care Trends & Insights data, part of the conversation around planning, not the with “How nice are the rooms and grounds?” Making your financial advisor.
which has been tracking LTC stats for almost two break-even.” own choices and conveying them to family can also help
prevent family from squabbling over what you “might”
have preferred.
Get the conversation started
Harms says that it’s wise to review LTC plans as part of
your yearly portfolio review. That means sharing infor-
mation on anything that can impact future needs, such as
A room of one’s own how long your grandparents lived, what conditions run in
the family, and how your health is today. Then, if you’d like,
your advisor can refer you to a licensed insurance agent for
quotes on various options. “We can run the numbers and
$105,850 62.38% 70% see what makes sense for you,” says Harms.
Once you have a plan in place, share it with your family,
The median yearly cost for a private The amount that cost Percentage of people she adds. “The sooner you do, the better they’ll be able to
room in a nursing home in 2020 increased between 2004 over age 65 who will respect and go along with the plans you put into place.”
and 2020 need long-term care
Ask your advisor about Truist’s ‘Survivor’s Guide,’ a
comprehensive tool to help you navigate after the loss
Source: Cost of Care Trends & Insights, Genworth.com
of a loved one.
6 | Truist Perspec tives December 2021 | 7
Insights: Risk management Insights: Risk management
Perez says the best thing you can do popular avenue for attack and is used on Truist, so go back to the source,
Protect yourself
is to limit your “attack surface.” “The by 65% of all known cyber fraud the institution, and contact an
more things you ‘touch,’ the more groups.2 advisor with that information,” says
vulnerable you are on the internet.” Perez. “If you have any doubts, always
How to protect yourself: Perez says
Practicing good cyber hygiene is be willing to say, ‘I need to call you
from cybercrime important: Doing things like running
antivirus programs to catch malware,
only visiting reputable websites,
if you receive a suspicious or unusual
email, get offline and pick up the
phone. “Call your boss or whoever’s
back,’ and then look up the contact
information by calling Truist, or
whatever financial institution it is.”
emailing you and say, ‘Hey, did you
using a spam/ad blocker, keeping
mean to send this? Are you serious? It’s important to educate yourself
This year, it’s estimated that there will be your computer system up to date—
What’s going on?’ That typically so you can identify suspicious cyber
these are all steps that will limit your
a ransomware attack on businesses every cyberattack surface.
catches a lot of this, because the per- behavior, Perez says, but know that
11 seconds—and that doesn’t include son on the other end won’t recognize Truist has a whole team dedicated
Another tip from Perez is to not the request if it’s illegitimate.”
attacks on individuals, which occur even use an account with administrator
In terms of personal banking, many
more frequently.1 permissions in your day-to-day
banks—including Truist—offer
computer work. “A lot of people set
dual approval for large transfers of
up their PCs on default settings, as an With damages predicted
money. With dual approval, you need
administrator,” he says. “That means
two parties to approve a financial to hit $6 trillion this year,
we can install anything we want to.
transaction to a third party. The first
But in your day-to-day work, you if it were measured as
person creates the transfer, while the
typically don’t need that. If you just
second authorized person checks and a country, cybercrime
create a general account that’s not
approves the activity. This can add
an administrator and use that, you’ve would be the world’s
an extra layer of protection against
severely limited the attack surface.”
When you do click a bad link on a
cyber fraud, and even if the transfer third-largest economy
is legitimate, it can cut down on
nonadministrator account, this will
mistakes. after the U.S. and China.4
severely limit the damage an attacker
can do because they don’t have the Advisor impersonation
required permissions. Cybercrime Magazine,
Because of COVID-19 and the shift
November 13, 2020
Business Email Compromise (BEC) to more phone and virtual meetings
with financial advisors, there has
In BEC, hackers will carefully craft an
been a huge increase in financial
email pretending to be an executive
advisor impersonation, says Perez.
or a position of authority that you
Fraudsters will impersonate real
know (like your CEO), asking you to to preventing fraud. If you notice
investment professionals with
wire or move money into another suspicious activity in your account,
spoofed websites, fake profiles
account. There is no compromise “Reach out to us and we will investi-
on social media, and more.3 And
of your network, but the sense of gate and see what corrective actions
while they’re using the likeness and
urgency (or emergency) can make we may need to take.
credentials of a real advisor, their
you act fast. Perez says hackers do
contact information directs you to “In conjunction with the FBI, we’re
their homework, and typically “they
the hacker. “These days, you’re not monitoring changes in the cyber
figure out who the players are, who
The intent of almost all cyberattacks clients, and what you can do to not posting your information to the always meeting face-to-face, and fraud landscape on an hourly basis
they need to send this message to,
is to get money—either yours or protect yourself. dark web as well). Perhaps the most hackers are exploiting that trust,” to make sure we’re on top of it, and
what they need to say, and even the
your company’s. At Truist, we deploy notable ransomware event in recent he says. we’re looking at how to address those
Ransomware correct writing style in order to make
a layered, in-depth approach to history was the Colonial Pipeline it the most successful.” According to How to protect yourself: Do your threats within the wealth landscape
Ransomware is a form of malware and within portfolios, applications,
security measures to protect you and cyberattack in 2021. the cybersecurity software company homework on a potential advisor’s
designed to encrypt files on your and with our clients.”
your accounts. Symantec, this type of emailing, contact information. “Truist Wealth
device, rendering your computer “We’re seeing high-profile individuals
“One of the biggest trends we’ve systems unusable. and companies targeted, where the known as spear-phishing, is the most Advisors will have a published page
seen lately is attackers going after Here’s how it works. Cyberattackers attackers steal the most money in
clients and suppliers,” says Jorge send you an email getting you to the least amount of time,” says Perez.
Perez, divisional chief information either click on a link or download a “From that perspective, clients who
security officer for Truist Wealth. file that unleashes the malware. The may be executives, business owners,
Being aware of the evolving, sophis-
ticated way hackers are committing
malware then encrypts your files, or high-net-worth individuals are
a big target because of their status
Good digital hygiene checklist
making them inaccessible; typically
cyber fraud is the first—and often they also then take your information. within their companies and also Keep your information and finances secure by regularly utilizing these best practices for safety:
best—line of defense. Then, they demand ransom (often personally.”
in cryptocurrency) in exchange for • Double down. Utilize two-factor authentication • Save safely. Back up sensitive or important data
Perez explains what he sees as the How to protect yourself: When it when possible. regularly.
biggest threats for Truist Wealth release of your files (and often for comes to avoiding ransomware,
• Be complex. Use a variety of passwords; keep • Check in. Monitor your financial accounts and
track by using a password manager. credit activity.
1 “Global Ransomware Damage Costs Predicted To Reach $20 Billion (USD) By 2021,” Cybercrime 3 Fraudsters Posing as Brokers or Investment Advisers – Investor Alert, SEC.gov, July 27, 2021.
Magazine, October 21, 2019. 4 “Cybercrime To Cost The World $10.5 Trillion Annually By 2025,” Cybercrime Magazine, • Stay up to date. Keep your computer system and • Stay connected. Sign up to receive alerts for
2 Internet Security Threat Report, Symantec, February 2019. November 13, 2020. antivirus software updated. your bank accounts.
8 | Truist Perspec tives December 2021 | 9
Insights: Leadership Insights: Leadership
Leading from crisis to reset In addition, you can align your priorities according to
your leadership purpose. A leadership purpose is a
kind of core mission statement of who you are. Once
collaborate because of this tragedy. Working together,
we were able to create training and engagement to
support the families of these downed servicepeople
it’s established, it can be your North Star for dealing and help mitigate the trauma of future catastrophes.
Duane McClure of Truist Leadership Institute explains how, as leaders, with complexity and unpredictability. When you have
What would that kind of reset look like in the business
we can help turn the lessons and challenges of the pandemic into a a leadership purpose, you know who you are and what
world? This pandemic creates the opportunity for
chance to reset. you want to do when change arrives, and you know
entirely new ideas and collaborations that could end
you can deliver regardless of the obstacles.
up resulting in, among other possibilities:
• new products
The pandemic forced us to change overnight. In our
business and personal lives, we were dealing with
A positive reset won’t come about by chance, though.
It takes self-awareness and purposeful leadership.
Finally, unify • new kinds of delivery services
• new offerings to customers and vendors
rapid, intricate changes and instability. We were also Here’s how I think leaders can help their teams When an organization (or family) is faced with a major
figuring out how to interpret everything that was by prioritizing projects to actively slow down the crisis, it’s a natural time for greater unification and • efficient new processes
going on. And at the same time, we were still trying processes of the workday, exploring meaning and alignment. It can be a time for breaking down silos This is a unique moment we’re in. As leaders and
to achieve our day-to-day goals at work. purpose in the context of team and organizational among teams and departments, as well as rethinking change agents, we want to make sure we don’t get
success, and unifying through collaboration. “business as usual” in new ways. overwhelmed by challenges, and instead lead—and
lean into—a positive reset.
It was the perfect Just before COVID-19 hit, I was in Japan working as
First, set priorities a consultant with the Marines when two planes went
The time is right to ask ourselves, “Where
stress cocktail. A good leader can help teams (whether it’s your
down in a tragic refueling accident. Several pilots
were killed, and their families were devastated. Then I are we going? Who do we want to be?”
It’s easy to feel overwhelmed by pandemic chal- work team or your family) slow down and step back saw the leaders of the two separate squadrons as well Then go for it.
lenges: Our kids are at home, we might get sick with by prioritizing and grouping the challenges as they as various officers across the base come together to
COVID-19, and the way we work has changed. All come. If I’m looking at 20 areas of complexity, I want
that stress can cause us to make quick decisions to ask, what are three things we can do right now to
even though we don’t have all the information. This help calm the chaos and clarify our mission?
is what we call a limbic system flood. The limbic
Think of it like the game Tetris: There are challenge
system—the part of the brain involved in behavioral
“blocks” coming toward us. We slow down the
process enough to select from the given options,
“
choose the proper fit, and use versatility and agility
to align with the organization’s purpose. When
another group of challenges comes, it’s OK because
When an organization we’ve slowed ourselves down enough, engaged
our rational and responsive approaches to begin
(or family) is faced with predicting or forecasting in ways that are more
a major crisis such as the manageable, preventing our limbic system from
being overwhelmed.
pandemic, it’s a natural
time for unification and
alignment.
Align with mission
Duane McClure, DM, LCMHC, LCPC “ and purpose
Executive Consultant When challenges come at us fast and furiously, how
do we set priorities? One way is to ask, “What can
we do now that’s crucial to our mission, vision, and
values? Something that’s going to be supportive of
customers, vendors, and stakeholders.” Your orga-
nization is more apt to align behind your decisions
and emotional responses and typically connected when priorities are set in a greater context.
to fight-or-flight responses—is telling you, “I don’t
know what to do next. There are too many decisions During the pandemic, many companies pivoted to
to make!” This fight-or-flight moment often leads support frontline workers and consumers in new
to a reactive approach rather than an informed ways. Commercial airlines started offering cargo
response. services, grocery stores became fulfillment centers,
and many retailers started offering curbside pickup.
But in times of stress, when the limbic system is At Truist Leadership Institute, we saw an opportunity
hijacked into reactive decisions, I have also seen how to expand our content delivery in innovative ways
leaders can help bring about a positive reset. In fact, to offer a virtual team optimization program of new
times of crisis can present an ideal moment for a course offerings to engage our clients. Now several
reboot—from immense challenges come new ideas, online offerings create more touch points to leader-
new technologies, and new collaborations. ship throughout the organization.
10 | Truist Perspec tives December 2021 | 11
The 4 pillars
successful
of a
estate plan
A customized,
flexible trust
means your
wealth goes
where you
intend it to.
W
ith the holiday season approaching, achieve their full potential because of the wealth and healthcare powers of attorney and often a The Center for Family
many topics will be up for discussion that they are going to receive down the road,” says revocable trust. The main difference between a will Legacy is here to help
around your dining table. One subject Emily Haenselman, director of family education for and a trust is that a will goes into effect after you’ve
that should be discussed among families Truist’s Center for Family Legacy. “Or they may feel died, whereas a trust is effective immediately upon
For more information on how to
but rarely is: wills and trusts. In fact, studies show that their beneficiaries and children would be taken signing and funding. The revocable trust is some- structure healthy, transparent,
that parents would rather discuss just about any- advantage of because of the wealth that they stand times called a “will substitute” because, like a will, and productive discussions
thing with their kids—even sex—instead of money. to inherit.” it expressly defines your wishes for the distribution around estate planning, read
You can multiply that aversion when it comes to of your property after your death. But unlike a will, it the white paper “Breaking the
Because of these worries, many choose to put off
wills and trusts, according to Carolann Grieve, can also delegate authority to someone to manage Silence” by Truist’s Center for
estate planning—or at least the family discussions
managing director of family governance for Truist’s your assets during your lifetime, in the event you Family Legacy.
surrounding it—which may breed uncertainty,
Center for Family Legacy. become incapacitated.
jealousy, and resentment among heirs.
“The heads of a family may have a lot of fears To be successful, your estate plan should: Truist’s Center for Family Legacy
To untangle some of these issues, it’s important to
surrounding their estate,” says Grieve. “Fear of end • Be customized works holistically to prepare
have healthy, candid discussions with your family
of life. Fear of losing control of their wealth.”
about the estate planning process. You can invite • Be flexible high-net-worth families to pass
In addition, there are substantive fears about the your financial advisor to facilitate discussions as an on wealth, in areas that include
heirs to an estate and how they will fare once they impartial participant, or organize them as you like. • Provide long-term asset protection for your heirs
financial education and family
inherit wealth. • Be entrusted to the right person or entity governance. For more informa-
Second, it’s crucial to work with an estate planning
“The matriarch and/or patriarch may worry that professional to create a plan that will be successful tion, read their white paper
their children will feel entitled, or that they will not for you. An estate plan consists of a will, financial > Continued next page “25 Best Practice*s for Families.”
12 | Truist Perspec tives December 2021 | 13
> The 4 pillars of a successful estate plan
children. If you had no will, under state law, they the beneficiary an unrestricted power
Customized for would each inherit a 25% share of your estate,
Provides long-term of withdrawal.
your family but that might not be what’s ‘fair’ for your family. asset protection “I like to think of a trust as a bucket,” Parks says.
The more complex your estate, Maybe one of your children borrowed a lot from If you are a high-net-worth “You’re putting assets—cash, securities, real es-
the more desirable it is to have you, or you provided much more financial support individual, or if you own a tate, businesses, etc.—into the bucket. The trustee
an estate plan that is customized to them during your lifetime than you did for your business (or both), one of the is the person holding the bucket with the power
to your particular goals and other children. You might want to ‘equalize’ things most appealing aspects of a trust to pull funds out and distribute them to people.
desires. Each estate is different, by giving that child less than the others upon your is the long-term asset protection. The trust agreement is essentially a contractual
and so is each family. You want your will and trust death. Or, you might want them to get a bigger According to Parks, by including certain provisions agreement between you and the trustee (and
to reflect your specific circumstances, according to share, because you feel they need it more than in a trust for your spouse and/or other heirs—you all successor trustees), in which you spell out to
Jacqueline Parks, Senior Wealth Strategist, your other children. There’s no rule that everybody can protect the wealth from personal or business whom they may distribute the funds, and for which
Truist Wealth. has to be given an equal share. “What’s fair and lawsuits, bankruptcy, and even divorce that could defined purposes. The trustee must follow the
equitable for your family is up to you,” Parks says. otherwise diminish the wealth they inherit after
There is a difference, for example, between equity terms of the trust agreement. “If properly drafted,
your death. This is accomplished by granting the it can be an effective tool to protect the wealth
and equality, she explains. Perhaps you have four
trustee discretion to distribute the trust assets from future creditor claims.”
over the course of the beneficiary’s lifetime, rather
than having mandatory distributions or granting
> Continued next page
who can make changes to the plan and protect
Flexibility is built in assets for your heirs after you’re gone.” The trustee
How you would like to divide and can be granted discretion to distribute assets
distribute your assets, and what among a pool of several people in accordance with
makes the most sense for your their needs (such as your children and grandchil-
family may change over your life- dren). The beneficiaries themselves can be given
time. That’s where the flexibility what’s called “powers of appointment” that allow
comes in. “I often recommend them to redirect how remaining trust assets will
that my clients create a revocable trust,” says be distributed after their own death. The powers
Parks. The revocable trust is amendable—you can of appointment may be drafted very broadly (to
always update it. However, Parks notes that once any person or charity), very narrowly (for example,
you die, it becomes irrevocable. limited to your descendants), or anywhere in
between. As the grantor or creator of the trust, the
“For this reason,” says Parks, “if you want to build
choice is yours.
in flexibility, then you might design your revocable
trust to include granting powers to other people
Where there’s a will …
Some of us put it off. We don’t want to think about it. But we all must have a will (or a “pour-over will”
if you have a trust). That’s because if you die with no will (“intestate” in legalese), like Howard Hughes
and Prince, the probate court will need to determine who are your legal heirs, and distribute your
assets among them in accordance with state laws. Typically, this would be your spouse and children/
grandchildren (perhaps in proportions you would not prefer), but if you have neither a spouse nor
descendants, then it could be your parents, siblings, nieces/nephews, cousins, etc. The bigger your
estate, the more likely distant relatives will come forward to stake a claim.
Even with a will, you have to go through the probate process (tedious, open to
the public, sometimes expensive). The will is a document where you identify
who should inherit your assets and how much they get. The probate court
oversees the process, determining what assets are included in your estate at
your death, and dividing and distributing them in accordance with the terms
of the will.
A revocable trust, like a will, identifies who should inherit your assets and
how much, but it is managed privately by your trustee, without the additional
expense and procedural requirements that come with oversight of the probate court.
14 | Truist Perspec tives
> The 4 pillars of a successful estate plan
• You need an entity that will stick around. Your
Choosing the trust may be designed to provide for your
right trustee grandchildren, and even their heirs. No one
When it comes to something individual that you designate will still be around to
personal like overseeing a will administer the trust in 100 years, but a corporate
or trust, it’s understandable that professional entity (or its legal successors) can
many people opt for a family continue well beyond the lifetimes of your family
member—often someone within members.
the legal or financial profession. But there are times • You need professional investment management.
when it may be wiser to choose a corporate trustee Trustees may be very aggressive and invest all
such as Truist. Here are some reasons why: the assets in something unsound. A professional
• You can avoid conflict within the family. “If trustee would have to follow state and contractual
you’re choosing a family member, it can impact law and be a prudent investor.
family dynamics,” says Parks. Imagine one of your Preparing your heirs
children needing to request funds from their Your estate plan is your legacy. You want to have an
sibling who is serving as a trustee. His manage- open dialogue with your kids and heirs about your
ment of the funds, and whether he is liberal or plans. Part of this means “having the conversations
conservative with distributions, may put a strain around why you’re doing what you’re doing with
on their relationship. This is true if the trustee is your wealth and the estate planning process,
administering the trust terms correctly and even communicating a sense of seriousness around the
worse if they are not. A professional trustee can estate plan, with an emphasis on stewarding the
impartially administer the trust terms, keeping wealth,” according to Emily Haenselman of the
financial matters apart from personal matters and Center for Family Legacy. “You want to create this
limiting the risk of future disputes among family understanding with the next generation that with
members over the money. this wealth comes a responsibility—and it’s more
• You’re not saving money. Administering a complex than just the wealth.”
trust is a big job, and the trustee is entitled to be Keep close track of your assets. Update your estate
compensated for their work as a trustee. If your plan regularly. Keep it flexible, and make sure it
trustee, “Uncle Joe,” is a corporate attorney or provides the protection you need. In that way, the
CPA and is used to billing at a high hourly rate, next generation—and even the one after—can be
consider that she may be entitled to charge the sure to do the same.
same rate for her services to your estate or trust.
Nominating someone as an executor or trustee is
not an honorary decision. There is a lot of work,
responsibility, and even risk of personal liability.
Executor versus trustee
An executor administers your will, whereas a trustee administers your trust.
For either one, you would have a list of parties in order of preference. It can
be an individual or more than one person (co-executors or co-trustees).
It could be a family member or someone unrelated to you whom you trust,
like your attorney or your CPA. And, for large or complex estates, it could
be an institution, like Truist.
16 | Truist Perspec tives December 2021 | 17
Community Community
Beyond the
winner’s circle
Checkered Flag our nation’s heroes who sacrifice so
selflessly to keep our country and
Foundation communities safe. While a simple
It began with a visit to Walter ‘thank you’ can mean the world,
Reed Medical Center. Visiting our goal is to go beyond that and
recuperating veterans was one way really make an impact in the lives
for NASCAR drivers to give back, of our servicemembers and their
but this visit was different. Brad families.”
These NASCAR drivers are champions of philanthropy off the track. Keselowski saw a friend getting For more information, go to
the crucial care he needed after checkeredflagfoundation.org.
Racing has given Kyle Busch, Brad Keselowski, and Martin Truex Jr. a lot to be grateful for, including having been injured in a war zone.
It prompted Brad to ask, “What can
money, fame, and a platform with legions of fans. In return, these NASCAR drivers and their partners I do to help?”
including elements such as reiki,
are using that platform to give back to the community in some pretty amazing ways. acupuncture, and art therapy—to
help patients through the process
and side effects of treatment.
process) and gives out grants of Every September, the foundation
up to $20,000 to couples in need. hosts a Catwalk for a Cause
“Many couples that we help are fundraiser in which NASCAR stars The Checkered
walk the red carpet with kids who
police officers, firefighters, former
military, public school teachers— have been diagnosed with cancer. Flag Foundation
people who choose jobs that serve
their community,” Busch says.
This year, the event raised more
than $600,000.
has raised more
Every year the fund invites its grant In November 2020, Sherry cut than $3.8 million
recipients—regardless of where
they are in their journey—to a big
the ribbon on the Sherry Strong
Integrative Medicine Oncology
for veterans and
family play date. Clinic in Novant Health’s medical
center in Charlotte, N.C. Sherry
first responders
“When we do the family play dates,
it’s a reminder we’ve been put hopes to open similar clinics across since 2010.
through this for a reason,” Busch the country. “This isn’t a hospital.
says. “It feels like, ‘OK, God, you This is a place to come to get well
had this all along.’ Because you and feel well,” Sherry says. “This is
Kyle and Samantha Busch see the joy of the parents and you a place of hope.”
Bundle of Joy Fund look at all these kids and it’s very Martin Truex Jr. For more information, go to
For Kyle and Samantha Busch, rewarding.” Foundation martintruexjrfoundation.org and And in 2010, the Checkered
supporting couples struggling with For more information, go to Since 2007, Martin Truex Jr. and sherrystrong.org. Flag Foundation began. Over the
infertility is an effort very close to bundleofjoyfund.org. longtime partner Sherry Pollex decade, the foundation’s focus has
home. The famed NASCAR driver have used their foundation to raise grown to include first responders
and his wife tried for a long time to money for underfunded childhood such as firefighters and police
get pregnant before going through and ovarian cancer initiatives. officers. But the mission remains
the process of in-vitro fertilization consistent—to give back to those
(IVF) to conceive their son, Brexton, For Martin and Sherry, their lives who risk their lives to serve us.
now 6 years old. changed forever in 2014 when
Some of the greatest moments
“I think most people realize IVF The Bundle of Sherry was diagnosed with stage
3C ovarian cancer. with Checkered Flag have been
is physically and emotionally
straining,” says Samantha Busch.
Joy Fund has “Cancer was the ultimate wakeup
through a program called the
Service Dog Fund. The foundation
call,” she says on her website,
awarded $1
Left page, left: Photo of baby courtesy
“But I don’t think they think about sponsors procurement and
sherrystrong.org. “It taught me Bundle of Joy Fund; left page, right:
the finances; just one round can training for certified service dogs Samantha and Kyle Busch (right) present
cost $20,000.” million in grants that I could use my voice and this
platform to help other women
for veterans who may be injured a grant to a happy couple (left); this page,
or have PTSD. At the end of the top: Martin Truex Jr. and Sherry Pollex at
The idea that lack of money may
prevent hopeful couples from
to almost 80 battling this horrible disease.” training, everyone attends an Catwalk for a Cause; this page, bottom
emotional ceremony called Hero’s left: kids walking the runway at Catwalk
becoming parents drove the couples. And that is what she and Martin
have done ever since. They Homecoming, in which the veteran for a Cause; this page, bottom right: Paige
Buschs to launch the Bundle of and Brad Keselowski present a service dog
expanded the foundation’s mission meets their dog for the first time.
Joy Fund. Working closely with the to Navy Veteran Matt Wheeler, Brittany
REACH Fertility Center in Charlotte, to focus on both childhood and Says Brad’s wife Paige Keselowski, Butterworth Photography.
N.C., the fund takes applications ovarian cancer, with an emphasis vice president of the foundation,
(there is an extensive vetting on integrative medicine— “For us, it’s all about giving back to
18 | Truist Perspec tives December 2021 | 19Lifestyle Lifestyle
A MasterClass membership
Holiday gift guide: 1.
MasterClass offers courses in thought-provoking and popular areas,
from screenwriting to negotiation, taught by masters in their field: Gordon
Ramsey serves up cooking advice. Malcolm Gladwell offers writing tips.
Anna Wintour teaches creativity and leadership. The list goes on and on.
6 virtual experiences
With this gift, subscribers can dive deeper into a skill they already know or
pick up something new that they’d never considered (wilderness survival,
anyone?). $180 for a one-year subscription, masterclass.com
to give this season Cooking classes
Give the gift of fun and experimentation in the kitchen as well as
2.
instruction from top-tier chefs with cooking classes like the ones from
Sur la Table. Plus, Sur la Table’s live Zoom classes are fully interactive, with
90- to 120-minute classes during which participants can ask questions
as they follow along step by step. Fresh pasta, classic cocktails, and much
more are on the menu—all from the comfort of your kitchen. Starting at
$29 per class plus cost of ingredients, surlatable.com
A virtual wine tasting
For the oenophiles on your list, Wine.com offers live virtual tastings—from
3. the acidic tastes of Germany to the bold flavors of Argentina—hosted by
winemakers, wine critics, and other experts spanning the globe. There is
no cost to join the tastings, but for a more interactive experience you can
buy the bottles that will be discussed in the class beforehand—with prices
ranging from around $10 to $60 directly from Wine.com. wine.com
An art subscription
A truly unique gift for the passionate art lover, Saatchi online art gallery
offers an art subscription. First, the gift recipient collaborates with an
4. expert art curator to identify their tastes, preferences, and styles. Then
they select original pieces, which they will receive monthly over the
course of a year, from a curated collection to hang in their home. This
gift is an experience the recipient can feel, see, and appreciate every day.
Starting at $30,000, saatchiart.com
A digital fitness subscription
If someone on your list would like to focus on their well-being in the new
T 5.
year, an online fitness program may be just the motivation they need. Much
his year, give friends and family an experience to remember. Many more than just spinning, a Peloton digital subscription provides access to
studies have shown that experiences can make us happier for thousands of classes, from yoga to strength training and outdoor running,
all taught by its world-class, famously positive instructors. You can stack
longer than material items, as we feel joy before, during, and long classes into themed workouts according to difficulty level, instructor, or
after the event takes place. even your favorite music. $12.99 per month plus tax, onepeloton.com
And with the COVID-19 pandemic still lingering, these virtual expe-
riences were purposely chosen to be enjoyed at home. We’ve curated A Rosetta Stone lifetime membership
a list of exceptional experiential gifts for this holiday season that Give the gift of 25 languages, from Greek to Hindi, with a lifetime Rosetta
Stone membership. Members can learn any (or all) of the languages in the
includes something for everyone, from the wine connoisseur to the
art lover and the lifelong learner.
6. Rosetta Stone program at their own pace. It’s the perfect present to give
in anticipation of (or in addition to) a trip to Istanbul, Paris, or Stockholm.
And it’s not only a gift of language, but also of confidence and connection.
$299 for lifetime membership, rosettastone.com
20 | Truist Perspec tives December 2021 | 21Inspire
Having the conversations
with your family around
your wealth and the estate
planning process, … with an
emphasis on stewarding the
wealth is crucial. You want
to create an understanding
with the next generation
that with this wealth comes
a responsibility—and it’s
more than just the wealth.
Emily Haenselman,
Director of family education
for Truist’s Center for Family Legacy
(from "The 4 pillars of a successful
estate plan," p. 12.)
Find our latest market commentary at
truist.com/wealth/insights
Disclosures: Truist Bank, Member FDIC. © 2021 Truist Financial Corporation. Truist, the Truist logo, and Branch Banking and Trust Company, both now Truist Bank, and Truist Delaware Trust Company.
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try (NMLS), which promotes uniformity and transparency throughout the residential real estate industry. LLC, and Precept Advisory Group, LLC, each SEC registered investment advisers. Sterling Capital Funds
Search the NMLS Registry. are advised by Sterling Capital Management, LLC.
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individual investment objectives, financial situations or the particular needs of any specific person. provide tax or legal advice. You should consult your individual tax or legal professional before taking any
Nothing in this material constitutes individual investment, legal or tax advice. Investments involve risk action that may have tax or legal consequences.
and an investor may incur profits or losses. Claims made may not be representative of the experience of
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