THE ESTATE PLANNING COUNCIL MOVEMENT
An Estate Planning Council (hereafter called simply a "Council" for brevity) is an association of life underwriters, representatives of trust institutions, attorneys, and accountants in a city, area or state, organized for the purpose of mutual education, better understanding of the estate planning process, pooling of knowledge, and the ultimate betterment of service to the public. Some Councils limit their life underwriter membership to life underwriters who have attained the Chartered Life Underwriter (CLU) designation and the majority limit their accounting members to Certified Public Accountants (CPA). A smaller number of Councils include selected individuals from related fields such as investment counseling, securities dealers or others who are deemed to have a legitimate interest in estate planning. Local conditions and the desires of members of the local Council should govern requirements for membership, but the essential element is a representation of the four basic estate planning disciplines: trust banking, insurance, accounting, and law.
Objectives
While there are many ways to state the objectives for which Councils are formed, the following quotation of the objectives set out in the by-laws of one of the larger Councils gives a succinct sample objective:
“ 1) To foster intelligent cooperation and a cordial understanding among members as to the proper relationship between the function of the attorney, certified public accountant, life underwriter, and trust officer in the field of estate planning; and
“ 2) To assist its members in keeping abreast of laws and conditions affecting business and personal taxation and the problems of estate accumulation and conservation so as to improve the knowledge of each member within his sphere; and with these objectives.
“ 3) To encourage its members to have as their ultimate goal the rendering of the best professional service to the public.”
However intangible the benefits of participation in a Council may sound, there has been a surprisingly universal consensus among those who have experienced such participation. The consensus is that splendid results have been obtained and that both the members and the public benefit from the existence of an Estate Planning Council in the community.
Activities of Councils
Most Councils hold regular meetings ranging in number from four to twelve during the year. The meetings held throughout the autumn, winter and spring are usually luncheon or dinner meetings with discussions by qualified experts on a wide variety of subjects of direct or general interest to the group. Such topics include administration of estates and trusts, estate planning, legal problems, life insurance problems, pension and profit-sharing plans, property rights, taxation problems, wills, etc. Some Councils have enjoyed considerable success by using breakfast meetings, particularly during the tax season, and others have operated well with a format which dispenses with meals for some meetings by having a late afternoon program followed by a social hour. At some time during the year, most Councils hold social gatherings to foster good fellowship and enable members to get better acquainted. Among the social activities are picnics, golf tournaments, clambakes, and group attendance at night baseball and football games. Spouses of members are often invited to these social events and humorous speakers are often well received. There is nothing of greater importance to Councils than that their members should know each other on a first-name basis and social activities provide the best possible means of accomplishing this end. Social activities develop a marvelous esprit de corps among Council members. Through such activities each member gains a better understanding of the other's business, so as to recognize when his expert advice is needed. All know and agree that trust officers, underwriters, attorneys, and accountants should work together to analyze an estate properly. With mutual respect members know they can work harmoniously on the problems and needs of their customers and clients.
HISTORICAL INFORMATION REGARDING NAEPC
Formed in 1962 and incorporated in 1963 as a non-profit business league by 13 estate planning leaders from nine Councils, NAEPC is rapidly growing to maturity. Though numerous objectives have been pursued over the years the abiding conviction is that the team approach to estate planning is essential to the creation of the estate plan to which each client is entitled.
Purpose
The founders of NAEPC held two fundamental convictions:
· Estate planning, effectively done, is of paramount benefit to the community as a whole.
· The most successful way to develop effective estate planning is through Estate Planning Councils. The team approach will produce the best results.
The initial concept for Estate Planning Councils began with bank trust officers and life underwriters in the early 1930's. In 1937 the Trust Division of the American Bankers Association and the National Association of Life Underwriters adopted Companion Resolutions which endorsed the establishment of Life Insurance-Trust Councils. A Guide for Forming Life Insurance - Trust and Estate Planning Councils was published jointly by these organizations between 1937 and 1959. This guide enumerated six purposes for the Estate Planning Council movement:
1. Enabling life underwriters, trust officers, attorneys, and accountants to become better acquainted;
2. Developing mutual trust and understanding;
3. Learning to cooperate - confident that there is no competition among the groups;
4. Learning more about each others’ business;
5. Knowing experts in each others' fields and having the confidence and trust to call on them for their services;
6. Giving, through this cooperation and study, much improved service to clients.
History
The Boston Estate Planning Council records its formation date as September 11, 1930 and seems to be unchallenged as the Estate Planning Council with the longest history of continuous operation. Other Estate Planning Councils have antecedents in the 1930's but have not been active continuously since then. Many of these were reestablished in the late 1940's and early 1950's. Ten Estate Planning Councils list their formation in the 1930's:
1930 Boston, Massachusetts
1934 Rochester, New York
1936 Denver, Colorado; Eastern New York (Albany); Connecticut (New Haven)
1937 Atlanta, Georgia; Baltimore, Maryland
1938 Chicago, Illinois; St. Louis, Missouri
1939 Pittsburgh, Pennsylvania
Another 25 Councils began in the 1940's:
1940: Buffalo, New York; Cleveland, Ohio; Milwaukee, Wisconsin; Seattle, Washington; Washington, DC
1941: Indianapolis, Indiana; Los Angeles, California, Philadelphia, Pennsylvania
1942: Northern New Jersey
1944: Cincinnati, Ohio
1945: Charlotte, North Carolina; Dallas, Texas; Detroit, Michigan; Tacoma, Washington
1947: Fort Wayne, Indiana; Houston, Texas; Western New York (Buffalo)
1948: Beaumont, Texas; Des Moines, Iowa; Louisville, Kentucky; Richmond, Virginia; Roanoke, Virginia
1949: Corpus Christi, Texas; Long Island, New York; Miami, Florida
In the early 1960's the leaders of the Eastern Estate Planning Councils saw the need for a national association to stimulate the spread of the Estate Planning Council idea and to provide assistance to the formation of new Estate Planning Councils. Hy P. Forest, a distinguished attorney in Miami, provided the dynamic leadership and dedicated the time to implement the incorporation of the National Association of Estate Planning Councils. He served as the first president of the new association with John G. Khouri, CLU; Joseph E. Teirney, Jr., CPA; and Frederick C. Rozelle, Jr., TO, rounding out the first slate of officers. Each of these founders later served as President of the NAEPC.
Council Boards continue to be structured so that the four Officers represent each of the four estate planning disciplines - an attorney, an accountant, a life underwriter and a trust officer. Therefore each president has contributed a minimum of four years of dedicated effort, largely at his own expense, to sustain the momentum of the organization.
The Board of Directors of NAEPC is very much a "working" Board. With three members representing each discipline, the twelve member board is composed of eight directors, three officers and the immediate past president.
PRACTICAL STEPS IN ORGANIZING A COUNCIL
Experience in many cities has shown that it is not difficult to organize a Council.
Step 1
One or more trust officers, life underwriters, attorneys, and accountants who are interested in establishing a Council can invite several of their colleagues who are members of these same professions to a preliminary meeting to discuss the project.
Step 2 - Preliminary Meeting
Hold a preliminary meeting. Topics for discussion include the structure of the organization to be formed, its goals, and its geographical or other limitations on membership. Those present at the preliminary meeting generally constitute themselves as a Committee on Organization. Four co-chairmen of this Committee on Organization, one from each of the four disciplines, should be named to proceed with the steps necessary to form a Council.
A preliminary decision, which needs to be made, is to decide the legal form that the organization will take and the initial degree of formality to be observed. Although many of the better established Councils are now organized as non-profit organizations, most Councils come into being as less formal, unincorporated associations. This Guide will deal only with the formation of organizations of this less formal type.
When general agreement is reached on these basic issues, a list of persons who are to be invited to attend the formal organization meeting should be prepared. The importance of careful selection in the preparation of this list cannot be overstated.
Step 3 - Organizational Meeting
The Committee on Organization should call an organization meeting by sending a letter to the list of prospective founding members prepared at the preliminary meeting. In this letter a definite response to the invitation should be requested.
A copy of this Guide should be forwarded to those who accept the invitation to attend the organization meeting. The cover letter should call attention to the articles of association or by-laws of the Council, such as the sample enclosed that has been used by many member Councils. This procedure can result in a considerable saving of time at the meeting itself. An agenda for the organizational meeting, such as this sample might also be furnished.
Agenda for Organization Meeting
a) Adopt articles of association or by-laws, citing;
Name of Council Objectives of membership
Board of directors Officers
Quorum Nominations and elections
Annual meetings Board of directors meetings
Committees Meetings of members
Treasury Expenses and dues
Advertisement Amendments
b) Elect officers and directors; so as to provide for representation of life underwriters, representatives of trust institutions, attorneys, and accountants on the board of directors and among the officers. For example, if the president of the newly organized Council is to be a trust officer, the vice-president should be a representative for one of the other groups; the secretary a representative from a third group; and the treasurer from the fourth group. Although practices vary, most Councils have provided that the president should be elected for a one-year term and be succeeded by the vice-president.
The board of directors might be composed of eight members, divided equally among the four representative groups. Most Councils provide that the officers are members of the board of directors. However, if desired, the size of the board might be increased by electing two additional representatives from each discipline. In most Councils the immediate past president serves as an ex-officio member of the board of directors and some Councils have the two most recent past presidents serve as ex-officio board members.
At the first meeting, arrangements should be made for the election of officers to staggered terms. For example, if there are to be eight directors, four should be elected to a term of one year and four to a term of two years. At the succeeding annual meetings, four members should be elected for a term of two years.
c) Establish committees Provide a method for the president of the Council to appoint such committees as may be deemed desirable. The number of committees and their composition will depend on the size of the Council. Generally, the most important committees or functions are Programs, Meetings, and Membership. Additional committees that may be formed are Finance, Publicity, Education, Ethics, Cooperation, and Taxation.
d) Fix annual dues. The amount of annual dues varies from Council to Council. Some are as low as $10 and others are as high as $120. Even minimal dues should be sufficient to cover such costs as sending notices of meetings to members, supplying members with printed copies of the Articles of Association and the Membership Roster, paying speakers’ expenses, dues to the NAEPC, and so forth. The higher dues generally include the expense of meals and beverages at some or all meetings.
The philosophies regarding the amount of dues vary as widely as the range of amounts would indicate. Some Councils feel that charging high dues and including meals will stimulate interest and attendance, while other Councils feel that dues should be minimal and the cost of meals or beverages should be borne by those attending such affairs.
e) Fund attendance of representative to NAEPC It is also desirable to budget money to defray all or part of the cost of sending a representative to the annual meeting of the NAEPC. Many Councils find it desirable to send the President-elect or Program chairman-elect.
(SUGGESTED)
ARTICLES OF ASSOCIATION ESTATE PLANNING COUNCIL OF
_________________________
NOTE: The following suggested Articles of Association should not be used without careful scrutiny. Competent legal advice will be required to assure that all requirements of local law are met and that tax, liability, and other legal aspects of organization are appropriately considered. This format is generally satisfactory if an informal association is to be formed. However, if a non-profit corporation format is to be used, these articles are obviously inadequate. If a non-profit corporation is decided upon, these provisions may serve as a helpful checklist and provide useful language for further elaboration and refinement.
I. NAME
The name of the association shall be the "Estate Planning Council of ______________," (hereinafter called the "Council").
II. OBJECT
The objects of the Council shall be:
1. To foster intelligent cooperation and a cordial understanding among the members as to the proper relationship between the functions of the attorney, Certified Public Accountant, Chartered Life Underwriter, and trust representative in the field of estate planning;
2. To assist its members in keeping abreast of laws and conditions affecting business and personal taxation and the problems of estate accumulation and conservation so as to improve the knowledge of each member within his/her sphere; and with these objectives;
3. To encourage its members to have as their ultimate goal the rendering of the best professional services to the public.
III. MEMBERSHIP
The membership of the Council shall consist of:
1. Officers of trust companies or banks maintaining trust departments which are actively engaged in trust or estate operations and administration;
2. Chartered Life Underwriters;
3. Attorneys;
4. Certified Public Accountants.
All members must be interested in and actively practicing estate planning or related subjects in the Counties of ______________ [in the metropolitan area].
The Charter Members shall be those adopting and signing these Articles of Association on or before the first day of . Subsequent members, if any, of said group shall be elected by a majority vote of the Executive Committee after having been approved by the Membership Committee.
Officials of organizations collateral to the estate planning disciplines may become members by approval of the Membership and Executive Committees.
IV. EXECUTIVE COMMITTEE
All powers necessary for the government of the Council shall be vested in an Executive Committee composed of eight members, two of whom shall be elected from the members comprising each of the four groups of the Council. After the first year of Council operation, the Immediate Past President shall be an ex-officio member of the Executive Committee with full voting powers.
At the first meeting of the Council, four members of the Executive Committee shall be elected for a term of one year and four members for a term of two years. At the next annual meeting and at all other meetings for the election of members of the Executive Committee, four members shall be elected for a term of two years.
V. OFFICERS
The officers of the Council shall consist of a President, a Vice President, a Secretary, and a Treasurer. The Vice President shall be chairman of the Program Committee. The Treasurer shall be chairman of the Membership Committee. The officers shall hold office for one year (or until their successors are chosen and agree to serve.)
VI. QUORUMS
Any five members of the Executive Committee shall constitute a quorum for the transaction of business. The Executive Committee shall have the power, by a concurrence of at least five members, to fill any vacancy, which may occur in their number for the unexpired term of such position. Likewise, any vacancy in any of the officer positions that occurs between annual meetings of the Directors may be filled by a concurrence of five members of the Executive Committee. members present at any regular meeting of the Council shall constitute a quorum for the transaction of business.
VII. NOMINATIONS AND ELECTIONS
At the meeting called for the organization of the Council and the adoption of Articles, the Executive Committee shall be elected by a majority vote of the members then present, and shall hold office until their successors are elected and qualified as hereinafter provided. At the organizational meeting, the initial officers shall then be elected from among the members of the Executive Committee by a majority of the members present at the organization meeting, and shall hold office until their successors are elected and qualified as hereinafter provided.
The President shall, fifteen days prior to the date of each annual meeting, appoint one member from each of the four disciplines as a Nominating Committee to submit a list of nominees for members of the Executive Committee to be voted upon at the annual meeting. Such Committee shall file the names of the nominees with the Secretary at least ten days before the date of the annual meeting. In addition, any nine members, by notice in writing filed with the Secretary at least five days before the meeting, may nominate candidates to serve as members of the Executive Committee. The members shall be entitled to vote for any candidate named by either one of the above methods at such meeting. The candidate for each position who receives the majority of votes cast by members present at such meeting shall be declared elected. If no majority is achieved on the first ballot, runoffs shall be held between the two candidates having the largest number of votes for each position until a majority of the votes cast for a given position is achieved by one candidate. Cumulative voting shall not be allowed, and no proxies shall be permitted.
Officers shall be elected by the Executive Committee from among their number, at the annual meeting of the Executive Committee.
VIII. ANNUAL MEETING
The annual meeting of the Council shall be held on the day of each year, beginning in 20 , at such time and place as may be selected by the Executive Committee. The Secretary shall mail each member a notice of the meeting at least five days prior to the date thereof. The notice shall state the names of the nominees for the Executive Committee.
IX. MEETINGS OF THE EXECUTIVE COMMITTEE
The annual meeting of the Executive Committee shall be held immediately following the annual meeting of the Council. Special meetings of the Executive Committee may be called by the President, at his discretion, or when requested to do so by three members of the Executive Committee. It shall be the duty of the Executive Committee to establish rules of procedure and practice for its meetings, subject to the approval of, or amendment by, the membership of the Council.
X. COMMITTEES
The President of the Council, or in his absence, the Vice President, and in the absence of both of them, the Treasurer, shall with the advice and consent of the Executive Committee, have the power to appoint committees on Programs, Membership, Ethics, Corporation, Education, Legislation, Publicity, and other such committees as shall be deemed advisable to further the interests of the Council and its members; and to delegate to such committees such power and authority as the Executive Committee shall deem advisable.
XI. MEETINGS
The Executive Committee may call meetings for the furtherance of the objectives of the Council at stated times, or from time to time, at their discretion. The Executive Committee and the Program Committee shall arrange the program of such meeting. Any member may, in writing addressed to the Secretary, request the Executive Committee to bring up for discussion at any meeting, except the annual meeting, any matter in which he may be interested.
XII. DUTIES OF OFFICERS
In addition to their other duties as set out herein, the duties of the officers shall be as follows:
1. The President shall preside at all the meetings of the Council and Executive Committee.
2. The Vice President shall perform the duties of the President in the absence of the President.
3. The Treasurer shall have the custody of all funds and property of the Council. He shall deposit all funds of the Council, in the name of the Council, in a bank account or trust company located in _________. The Treasurer or President shall sign all checks or orders for the withdrawals of such funds. He shall prepare and submit a Statement of Financial Condition of the Council at the annual meeting and at such times and in such manner as the Executive Committee may require. In addition, the Treasurer shall perform the duties of the President in the absence of the President and the Vice President.
4. The Secretary shall keep a record of the proceedings of all meetings of the Council and the Executive Committee and shall be responsible for the mailing of notices of meetings and other communications to the members of the Executive Committee and the membership.
XIII. EXPENSES AND DUES
The expenses of the Council [, except the cost of dinners,] shall be provided for by annual dues of each member, payable in advance on or before the date of the annual meeting in each year.
XIV. ADVERTISEMENT
No member of the Council shall use his membership therein in any form of advertisement or solicitation of business.
XV. AMENDMENTS
These Articles of Association may be amended at any annual or special meeting of the Council by vote of two-thirds of the members present; provided that notice setting forth the proposed amendment shall have been mailed to all members at least five days prior to the date of such meeting and provided further that the Executive Committee shall have theretofore approved such amendment in writing.
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