Pub. 2 2013 Issue 8

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 16 T HE 2013 KBA TRUST DIVISION Conference was held in the elegant backdrop of the Oread Hotel in Lawrence, Kansas. The well-attended event opened with a presentation from Troy Davig, SVP and Director of Research, Federal Reserve Bank of Kansas City. The talk titled “The US Outlook” provided an analysis of the GDP with a sustained growth rate of 2% over several years. The rate was largely attributed to shaky consumer confidence due to multiple debt ceiling and fiscal cliff debates, the European crisis and natural disasters in Japan. Davig discussed unemployment rates and how the Bureau of Labor Statistics builds its analysis as well as how this recovery compares to past cycles. Sequestration and broader fiscal tightening has had an effect on the economy but the full effect probably has not been seen yet. After reviewing the factors impacting the housing markets, he concluded with his view of the greatest risks to our economy. The debt ceiling debate and continued sequestration effects on interest rates are among Davig’s risks to an outlook decline. He also discussed the effect of rising commodity prices, reintensification of the financial crisis in Europe and slowed growth in emerging markets as areas to monitor. Co-founder of JanSport, Skip Yowell provided an entertaining look at the story behind his business start-up and amazing success. He was able to share his experiences of expeditions to Nepal and Africa where he would test backpacks, the first dome tents and other products while interacting with local culture. “Understand your customer,” stated Yowell. Through many action shots from his self-proclaimed hippie revolution of mountaineering equipment, he shared his secret to success. “I take our business seriously but I don’t take myself seriously, you have to know how to have fun.” A panel of experienced trust officers, Daryl Craft, Shane McCall, John Thaemert and moderator Martha Linser, provided a view of the “Past, Present and Future of Trust Business.” Following the panel discussion, Shon Robben, Arthur-Green, LLP, gave a talk titled “Planning Alternatives for Farming and Non-Farming Heirs.” Shon shared various considerations for a farming estate plan with fewer liquid assets and uncertain land values among others. He had many pointers to tax planning, exemptions, and recommendations for business classifications. Cindy Hermes, Director of Public Outreach for the Kansas Insurance Department, shared details about the new health plans available in Kansas as a result of the Affordable Care Act. She listed the various plans available as well as levels of care and premium structure. With a unique perspective on investment strategies, William Ehling, Federated Investors, shared many decision tools for the fixed income investor. He addressed the concerns of debt growth that exceeds GDP, the lackluster economic recovery and bonds versus stocks in this economy. Stan Haithcock, “Stan the Annuity Man,” explained the pitfalls and benefits of various types of annuities. Annuities don’t have to be a forbidden route but understanding how to purchase them for the contractually guaranteed benefits and not falling for the sales oriented hype is essential to making a good annuity choice for your clients. He warned that fraudulent internet sales are likely to increase with the boomer generation looking for “guaranteed” income. Comparing annuities for their features, fees and for their financial strength is an essential part of the analysis. The financial strength can be compared by using Comdex ratings. The conference was wrapped up with a presentation by Matthew Bish, Foulston Siefkin, LLP, titled “More Expensive by the Dozen: Twelve Frequent Estate Planning Mistakes which Cause Most Estate Plans to be Flawed.” His presentation and solution strategies are supportive of clients using professional fiduciaries to avoid some of these mistakes. The KBA Trust Division officers and members provided a heartfelt farewell to Elaine Martin. Elaine has provided 12 years of support to the Trust Division and will be missed. We wish her well in her retirement. TRUST CONFERENCE