All Planned Giving & Trust Services personnel who have been performing any discretionary trust/estate management or development functions for at least one year have been certified. (1984 North American Division Annual Council)

Current signed conflict of interest statements are on file for all appropriate individuals. (NADWP S 47 10 and 20)

All Planned Giving & Trust Services personnel are adequately covered by a fidelity bond. (NADWP S 04 47)

All trusts, wills, charitable gift annuities, and all other legal documents are prepared by, or under the supervision of, legal counsel in such a manner that the attorney accepts responsibility for the documents. (NADWP S 40 05, S 40 20 and 1983 NAD Annual Council)

The Professional Ethics for Corporate Legal Counsel policy is being complied with including:

a. A written opinion has been obtained from the attorney regarding the activities Planned Giving & Trust Services personnel may properly engage in and the risks that may be involved.

b. The denominational organization and the donor(s) are represented by separate independent legal counsel unless the attorney representing both the organization and the donor(s) has provided the organization with a legal opinion stating that the attorney may represent both parties concurrently in harmony with good professional ethics and applicable law and rulings.
The opinion, which shall be updated at least every five years, shall provide legal citations where appropriate (e.g., statutes, court opinions, ethics opinions and rulings, etc.), and shall address the following:
i. Estate planning documents that may be prepared under dual representation (e.g., will, trust, durable financial power of attorney, health care power of attorney, living will, etc.);
ii. Source of the legal fees for the various documents and manner of payment (e.g., partial or full payment by donor(s), partial or full payment by the organization directly to the attorney or by reimbursement to donor(s)); iii. The party to whom the attorney’s primary duty is owed; and iv. Any other issues deemed relevant by the attorney.

c. If the above attorney is engaged in the drafting of wills, trusts, or other estate planning documents for the donor(s), there is:
i. An engagement letter setting forth the basic financial arrangement of who pays the fee, and
ii. A full disclosure statement and conflict of interest waiver are provided to and signed by the donor(s).

NOTE: The foregoing Standard 5 is not intended to preclude a situation where disclosure is made to the donor(s) that the attorney represents only the denominational organization, and the donor(s) decline(s) a recommendation to obtain independent legal counsel.

A written opinion has been obtained from legal counsel regarding the appropriate method of holding title to trust assets, and the attorney’s recommendation is being followed. If legal counsel has indicated that the existence of the trust should be disclosed, such legal counsel has indicated the appropriate method of disclosure such as “Trustee for….”

All denominational investment policies are complied with. (NADWP S 40 16 and S 85)

All revocable trusts are separately invested at the specific written direction of the trustor(s). Written directions from the trustor(s) are obtained for all investments of specifically invested revocable trusts. (NADWP S 40 16)

No loans of trust/estate assets are made to any denominational entity or fund other than the Union Revolving Fund. (NADWP S 40 16)

Assets held in a fiduciary capacity are kept separate from and not commingled with other assets held by the organization in a non-fiduciary capacity.

Gift annuity rates are in accordance with denominational policy. (NADWP S 40 10)

The fiduciary has appropriate documents of title or ownership for all trust and estate assets.

Receipts are issued whenever any cash, non-cash assets, or other documents are received by Planned Giving & Trust Services personnel.

Procedures are in effect to assure that all necessary tax reports are accurately filed on a timely basis and qualified tax counsel is obtained when appropriate. (This includes Federal, provincial, and state tax reports.)

Taxpayer identification numbers have been obtained for all trusts and estates, where required.

All non-cash assets are consistently recorded in the accounting records as follows:

a. All non-cash assets held in irrevocable trusts (e.g. unitrusts, annuity trusts, matured revocable trusts or estates) are consistently recorded in the accounting records at fair market value when the asset is placed in the trust or the estate.

b. All non-cash assets held in revocable trusts (or other grantor trusts) are consistently recorded at either:
i. Fair market value when the asset is placed into trust, or
ii. Trustor’s income tax (cost) basis. (A signed statement from the trustor is acceptable for this purpose.)

Reports to the trustor(s), which include all trust assets, are issued at least annually and include both a statement of trust assets and a statement of trust income/activity. At least one report should be a composite report reflecting total assets held in the trust and all income activity for the year. These reports should be sent, where appropriate, to beneficiaries of irrevocable trusts and estates after consultation with legal counsel.

For all parcels of real estate, the files include one of the following:

a. A recorded deed, or

b. A statement, approved by legal counsel, signed by the trustor(s) of a revocable trust, asking the trustee to not record the deed and agreeing to release the trustee from, and to indemnify the trustee for, all liability, if any, as a result thereof, or

c. A written opinion from legal counsel recommending that the specific deed not be recorded and explaining the reason therefore.

When real properties are accepted into trust or in other instances where legal title is taken (either in a fiduciary or non-fiduciary capacity) on behalf of Planned Giving & Trust Services on or after January 1, 1993, an investigation is made regarding hazardous waste. The organization’s legal counsel shall approve an appropriate form and designate the individual who is to complete it. (NADWP S 05 46)

All insurable real property held as an irrevocable trust/estate asset is insured. For revocable trusts, all insurable real property assets should be insured unless a signed statement, approved by legal counsel, is obtained from the trustor(s) of a revocable trust indicating that the asset is not to be insured and agreeing to release the trustee from, and to indemnify the trustee for, all liability as a result thereof. (Insurable real property of revocable trust assets should always be insured if the trustor(s) so desire(s), and it is practicable to do so. Insurable real property trust or estate assets include improved or unimproved real property whether the deed is recorded or not. Coverage should include fire and casualty, where applicable.)

In the event legal counsel determines it is impracticable to comply with the above requirements, an alternate procedure may be implemented for revocable trusts, if written approval from the organization’s legal counsel states that the alternate procedure adequately fulfills the trustee’s fiduciary responsibility. This legal opinion shall be updated at least every three years or upon change of legal counsel.

Insurance coverage is reviewed periodically (at least every three years) to verify that coverage appears to be adequate. Where coverage does not appear to be adequate, a “Hold Harmless” agreement approved by legal counsel is signed by the trustor(s) of a revocable trust stating that the trustor(s) is/are not relying upon the trustee to determine the adequacy of the insurance coverage and agreeing to release the trustee from, and to indemnify the trustee for, all liability as a result of any inadequacy of insurance coverage. This same procedure is followed when the trustor(s) does/do not wish this periodic review to determine the adequacy of insurance.

In the event legal counsel determines that it is impracticable under the circumstance to comply with the above requirements, an alternate procedure may be used for revocable trusts, if written approval by the entity’s legal counsel states that this procedure adequately fulfills the trustee’s fiduciary responsibility in this regard. This legal opinion shall be updated at least every three years or upon change of legal counsel.

In the case of revocable trusts, when it has been determined that the trustor has obtained insurance covering the real property, the trustee is named as an “additional insured” except in the following circumstances:

a. If the deed is to be recorded, evidence is contained in the trust file indicating that contact has been made with the trustor(s) or the insurance company, and that naming the trustee as an “additional insured” is impossible or impractical for the trustor(s). In this case, a “Hold Harmless” statement approved by legal counsel is signed by the trustor agreeing to release the trustee from and to indemnify the trustee for, all liability as a result.

b. If the deed is not to be recorded (at the written request of the trustor(s)), the trustor shall have the option of choosing not to have the trustee named as an “additional insured.” In this case, a “Hold Harmless” agreement approved by legal counsel is signed by the trustor(s) agreeing to release the trustee from, and to indemnify the trustee for, all liability as a result.

In the event legal counsel determines it is impracticable to comply with the above requirements, an alternative procedure shall be approved in writing by the entity’s legal counsel in regard to (a) or (b) above, stating that this procedure adequately fulfills the trustee’s fiduciary responsibility in this regard. This legal opinion shall be updated at least every three years or upon change of legal counsel.

All trusts are specifically authorized by the appropriate board or committee. (NADWP S 40 15)

Trust agreements are written only when the denomination will substantially benefit from such agreements, with the nature of the assets, size of the estate, cost of servicing the trust, and other factors being considered in determining the feasibility of entering into such agreements. (NADWP S 40 15)

A checklist of procedures to be followed in establishing new trusts is consistently utilized.

The governing board or appropriate committee is advised of all revocations of trust agreements. Such action is recorded in the minutes of the governing board or appropriate committee.

The governing board or appropriate committee is advised of each interim distribution from a matured trust or estate and is also advised of the final distribution and termination of each matured trust or estate. Such notification is recorded in the minutes of the governing board or appropriate committee. (NADWP S 40 25)

Signed receipts, releases or acknowledgments are requested and received, when practical, from all beneficiaries of matured trusts or estates. This means that the beneficiary signs a separate receipt or release, or signs an acknowledgment above the beneficiary’s endorsement on the check. Such receipt, release or acknowledgment shall verify that the distribution is a “partial” or “full and complete” distribution to the beneficiary in harmony with the trust or will. Any other method shall be approved in writing by the entity’s local legal counsel.

Appropriate documentary evidence is obtained whenever assets of revocable trusts are returned to the trustor(s). This means that the beneficiary signs a separate receipt or signs an acknowledgment above the distributee’s endorsement on the check. Such receipt or acknowledgment shall verify that the asset was withdrawn from the trust by the beneficiary in harmony with the trust document. Any other method shall be approved in writing by the entity’s local legal counsel.

Assets of matured trusts and estates are distributed and the trusts/estates are terminated within a reasonable period of time.

Written requests are obtained for all withdrawals from or revocations of revocable trusts.

A checklist of procedures to be followed in revoking a trust is consistently utilized.

A checklist of procedures to be followed in closing out a matured trust or estate is consistently utilized.

When a denominational employee/organization is named as attorney-in-fact under a Power of Attorney as a result of his/her employment:

a. The Power of Attorney is approved by the governing board or appropriate committee when the attorney-in-fact has the power to act. (NADWP S 40 31)

b. Significant acts (such as the disposition of major assets) are approved by the governing board or appropriate committee. (NADWP S 40 31)

c. All assets under the active control of the Power of Attorney are accounted for in a formal trust or estate accounting system with complete documentation which is available to the organization’s officers and auditors at all reasonable times. (NADWP S 40 31)

When a denominational employee/organization is named as Personal Representative/ Executor or Conservator as a result of his/her employment:

a. The designation as Personal Representative/Executor or Conservator is approved by the governing board or appropriate committee when the need to serve arises. (NADWP S 40 33)

b. Significant acts (such as the disposition of major assets) are approved by the governing board or appropriate committee. (NADWP S 40 33)

c. All assets under the current control or responsibility of the Personal Representative/Executor or Conservator are accounted for in a formal trust or estate accounting system with complete documentation that is available to the organization’s officers and auditors at all reasonable times.

A list of all Powers of Attorney held in an official capacity by persons employed by the organization, including the extent of, or limitations on, the powers is maintained.

When a trustor or testator dies, a copy of the death certificate or other appropriate evidence of death is obtained.

Documents held in a fiduciary capacity, and other related materials, are properly logged out when taken from the files.

All files held in a fiduciary capacity are properly organized and subdivided.

Files held in a fiduciary capacity are reviewed periodically (e.g., every 3 to 5 years) to verify that the files include all necessary documentation.

Original documents are never removed from the office except when an original document is required.

A summary (i.e. synopsis) is maintained for each trust which summarizes the pertinent provisions of the trust.

Securities held in a fiduciary capacity are physically inspected at least annually and the list of physically inspected securities is reconciled to the accounting records.

Files held in a fiduciary capacity and other legal documents are kept in properly secured fire-resistant files/vaults.

A tickler system is adequately maintained and utilized.

The General Conference Auditing Service Report on Planned Giving & Trust Services Operations is either:

a. Submitted to the Financial Audit Review Committee which sends the report along with the Committee’s response to the governing board, or

b. Submitted directly to the governing board. (NADWP S 71 35 and 36)

The report of the General Conference Auditing Service is carefully reviewed and appropriate action is taken to implement the recommendations.