- 1. Holt Community Education January 21, 2012 This class is
intended for educational purposes only and should not be deemed
legal advice. Anyinformation you choose to share in this classroom
setting is not subject to attorney-client privilege.
2. Wills vs. Trusts Whats the Difference?Last Will &
TestamentLiving Trust Agreement Assets passing through will Assets
passing through trustsubject to probate not subject to probate
Court costs No court costs Public court file Private agreement Less
control of assets More control of assets Provides for distribution
of Provides for your care foryour assets at death your lifetime and
distribution of your assets at death 3. Apple Trees & Estate
Plans 4. Congratulations on your new apple tree! 5. Important
Care/Watering Instructions:AT HARVEST TIME, DISTRIBUTE FRUIT
EQUALLY TO CHILDREN. 6. To create a Will, youll need to supply
someinformation about yourself and your family.Some law firms will
request that you complete a fill-in-the-blank form about your
wishes. 7. A Last Will & TestamentTells the Probate Court:- Who
You Are.- Who Your Natural Heirs Are.- Who Will Raise Your
MinorChildren and/or Manage theChildrens Inheritance UntilAge 18.-
Who Should Settle Your Estate.- Who Should Receive Your Estate,And
How it Should be DividedUpon Your Death. 8. At Your Death:With a
Will, yourpersonal representativeadministers your assetsthat are
subject toProbate. 9. At the death of the Testator, the job of the
Personal Representative(formerly known as Executor) under a Will is
to Probate the Estate. 10. Probate requires a serious of documents
to be filed with the Courtand mailed to all Interested Parties.
There are significant costs toprobating a Will, including Court
Costs and Fees, Inventory Fees andAttorney Fees. 11. Probate takes
a minimum of 8 months to a year, but can take as longas two- three
years or many more, depending on the circumstances. 12. Once the
Personal Representative has complied with all probaterequirements,
the Estate may be distributed to those entitled to it, inthe shares
or portions set forth in the Will. 13. Congratulations on your new
apple tree! 14. Important Care/Watering Instructions:See Enclosed
15 Page Booklet for SitePreparation, Staking, Fertilization,
Watering, Protection Against Deer, Avoiding Pests, Pruning Tips to
Maximize Yield, Proper Harvesting,Fruit Packaging, Storage &
Delivery. Added Bonus Apple Recipes for Success! 15. A Well-Drafted
TrustAgreement States:- Who You Are- Who is Responsible
forAdministering Your Trust- Who Receives Your TrustEstate, At What
Time & ForWhat Purpose-What the Trustee Needs toKnow to Do
Their Job 16. A Trust Agreement Takes A Little Extra WorkYoull
typically do more work to SET UP a TRUSTthan you would with a
WILL.Youll gather information about your assets, sothat your trust
can be funded. 17. You may have to visit your banks, creditunions,
and other financial institutions tofund or transfer your assets
into your trust. 18. You can now do some of the work online.Be
thorough. Double-check to make sure eachasset has been correctly
funded to the trust. 19. You dont lose control over the assets
inyour trust in fact, with a typicalrevocable trust, youll be
serving asyour own trustee for your competentlifetime.So for
example, when you go groceryshopping, you are using your powers
astrustee to expend trust funds for yourbenefit.And there are no
limits! 20. You can change banks or financialadvisors, you may sell
your homeand buy a new one or even sellyour home and travel
theworld, spending every last dime.Just because your assets are
heldby a revocable trust doesntrestrict your ability to do whatyou
please with your assetsduring your lifetime. 21. If you are unable
to care foryourself, your successortrustee may take over the roleof
administering the trust foryour benefit. 22. At Your Death:With a
Trust, YourTrustee AdministersYour Estate Subject tothe Rules of
the Trust. 23. By avoiding probate, your Trust minimizes costs
andexpenses, saving more of your estate for your beneficiaries. 24.
Trusts are often used to maintaincontrol of a
beneficiarysinheritance, providing funds for acollege education, to
buy a home orstart a business. 25. Same Apple Tree.Different
Instructions.Which Estate Plan Would You Rather Have? 26. The
Timeline IllustrationUnderstanding the Role of Potential Documents
in Your Estate PlanToday IncapacityDeath Lets pretend that today we
are meeting to sign some typical estate planning documents. You may
recognize the names of some of these documents, as they may be part
of your estate plan. 27. The Timeline IllustrationUnderstanding the
Role of Potential Documents in Your Estate PlanToda
IncapacityDeatyDPOA Eff. Immediately h DPOA Eff. on Incapacity One
of the most simple, yet powerful documents is the General Durable
Power of Attorney. There are two types of General Durable Powers of
Attorney. The first is Effective Immediately. The second is
Springing, or Effective Upon Your Incapacity. The person you
nominate for this role is called your agent or attorney-in-fact.
28. The Timeline IllustrationUnderstanding the Role of Potential
Documents in Your Estate PlanToda Incapacity DeatyDPOA Eff.
ImmediatelyhDPOA Eff. on IncapacityHealth Care Power ofAttorney A
Health Care Power of Attorney is effective only upon your
incapacity. The person serving under a health care power of
attorney is your patient advocate. Michigan law provides that 2
physicians or a physician and a licensed psychologist must
determine in writing that an individual lacks the mental capacity
to make their own medical treatment decisions before the document
can be used. 29. The Timeline IllustrationUnderstanding the Role of
Potential Documents in Your Estate PlanLIFETIME
DOCUMENTSTodaIncapacity DeatyDPOA Eff. Immediately h DPOA Eff. on
Incapacity Health Care Power of Attorney Last Will & Testament
These documents appear on the LIFETIME side of the timeline. Next,
lets take a look at another commonly used estate planning document,
this time on the POST-DEATH side, the Last Will & Testament.
The person who administers your will is called a personal
representative. 30. The Timeline IllustrationUnderstanding the Role
of Potential Documents in Your Estate
PlanLIFETIMEPOST-DEATHTodaIncapacityDeatyDPOA Eff. ImmediatelyhDPOA
Eff. on IncapacityHealth Care Power ofAttorney Last Will &
Testament Revocable Living TrustUnlike the Last Will &
Testament, a typical Revocable Living Truststarts on the LIFETIME
side of the timeline, during which you maytransfer assets into your
trust, and perhaps even serve as your owntrustee.The person
administering your trust is called your trustee. This maybe you, or
the person who takes over as your successor due to yourresignation,
incapacitation or death. 31. The Timeline IllustrationUnderstanding
the Role of Potential Documents in Your Estate
PlanLIFETIMEPOST-DEATHTodaIncapacityDeaty DPOA Eff. Immediately
hDPOA Eff. on IncapacityHealth Care Power ofAttorney Last Will
& Testament Revocable Living Trust You serve as your own
trustee for your lifetime, as long as you are competent to do so. A
successor trustee or here, due to your may take over heredeath. due
to your incapacity 32. Not all trusts are created equally JO ANNE
HINDS REVOCABLE LIVING TRUST NO. 1 JO ANNE HINDS, currently
residing at 999 MAIN STREET, ANYTOWN, MI 49999 hereby makes and
establishes this revocable living trust, to be known as the JO ANNE
HINDS REVOCABLE LIVING TRUST NO. 1 DATED MAY 12, 2010, reserving
unto herself the exclusive right to amend or revoke the trust at
any time during her lifetime, with JO ANNE HINDS as Settlor
(hereinafter referred to asSETTLOR) and JO ANNE HINDS as trustee
(TRUSTEE), for the purpose of providing asset management assistance
during the lifetime of Settlor and to effect the distribution of
the trust estate upon Settlors death. 33. Declaration and Agreement
of Trust Jo Anne Hinds Trust1. My name is Jo Anne Hinds. My address
is 999 Main Street, Anytown, Michigan 49999.2. I am the creator of
this trust. Under Michigan law, the creator of the trust is known
as the Settlor. I also serve as the initial trustee of my trust.3.
The name of my trust is the Jo Anne Hinds Trust.4. The date of this
trust agreement is October 11, 2010.5. I may change (amend) or
cancel (revoke) my trust at any time during my lifetime, as long as
I remain competent.6. I create this trust agreement to provide my
trustee with instructions about how to manage my trust during my
lifetime and how to administer my trust and distribute my assets at
my death. 34. What Can You Do Yourself to Prepare? Make a list of
yourbeneficiaries Note if there are stringsattached to the gifts
Make a list of people youtrust to carry out your wishes(with at
least one alternate) Make a list of special itemsyoud like to give
Make a list of your assets real estate, financialaccounts, stocks,
investments, businesses 35. Jo Anne Hinds - Attorney at LawAdvising
Families Just Like Yours Since 1994 Wills, trusts, powers of
attorney Estate planning for clients of all ages House calls
exclusively, at no additional charge Weekday evening and Saturday
consultations Free 30 minute initial telephone consultationsThank
you for attending this community education class. Please complete
the survey and be sure to include your email address!