Rockford Community Education: Tools for Success with Trusts

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Power point presentation from "Tools for Success with Trusts" a Rockford Public Schools Community Education Class offered June 1, 2011 at the Rockford Freshman Center. Instructed by Jo Anne Hinds, a …

Power point presentation from "Tools for Success with Trusts" a Rockford Public Schools Community Education Class offered June 1, 2011 at the Rockford Freshman Center. Instructed by Jo Anne Hinds, a Michigan attorney with 17+ years experience in trusts and estates.

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  • 1. Toolsfor Success with Trusts
    This presentation is intended for educational purposes only.
    The information contained herein does not constitute legal advice nor does it create an attorney-client relationship between the viewer or participant and Attorney Jo Anne Hinds.
    Jo Anne Hinds
    Attorney at Law
    Rockford Public Schools
    Community Education
    June 1, 2011
  • 2.
  • 3. A Few Things You Need to Know
    I am not here to sell you anything.
    This is not a lecture! Good estate planning starts with a good conversation.
    Creating a trust is a choice you may make to simplify your estate, but trusts (or wills)aren’t legally requiredfor anyone.
  • 4. Let’s do a little background research
  • 5. What is a trust?
    A trust is created when legal ownership is separated from equitable ownership.
  • 6. Wills vs. Trusts – What’s the Difference?
    Last Will & Testament
    Assets passing through will subject to probate
    Court costs
    Public court file
    Less control of assets
    Provides for distribution of your assets at death
    Living Trust Agreement
    Assets passing through trust not subject to probate
    No court costs
    Private agreement
    More control of assets
    Provides for your care for your lifetime and distribution of your assets at death
  • 7. The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan
    Today
    Death
    Incapacity
    Let’s 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.
  • 8. The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan
    Today
    Death
    Incapacity
    DPOA – Eff. Immediately
    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.”
  • 9. The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan
    Today
    Death
    Incapacity
    DPOA – Eff. Immediately
    DPOA – Eff. on Incapacity
    Health Care Power of Attorney
    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.
  • 10. The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan
    LIFETIME DOCUMENTS
    Today
    Death
    Incapacity
    DPOA – Eff. Immediately
    DPOA – Eff. on Incapacity
    Health Care Power of Attorney
    Last Will & Testament
    These documents appear on the LIFETIME side of the timeline.
    Next, let’s 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.
  • 11. The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan
    LIFETIME
    POST-DEATH
    Today
    Death
    Incapacity
    DPOA – Eff. Immediately
    DPOA – Eff. on Incapacity
    Health Care Power of Attorney
    Last Will & Testament
    Assets passing through a Last Will & Testament are subject to Probate. Your family can expect the following if your assets are subject to probate:
    • Filing fees and court costs ($150 + $12 + Inventory Fee)
    • 12. A minimum of 6-8 months, longer in many circumstances
    • 13. Attorney fees, paperwork and timelines to be met
  • The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan
    LIFETIME
    POST-DEATH
    Today
    Death
    Incapacity
    DPOA – Eff. Immediately
    DPOA – Eff. on Incapacity
    Health Care Power of Attorney
    Last Will & Testament
    Revocable Living Trust
    Unlike the Last Will & Testament, a typical Revocable Living Trust starts on the LIFETIME side of the timeline, during which you may transfer assets into your trust, and perhaps even serve as your own trustee.
    The person administering your trust is called your trustee. This may be you, or the person who takes over as your successor due to your resignation, incapacitation or death.
  • 14. The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan
    LIFETIME
    POST-DEATH
    Today
    Death
    Incapacity
    DPOA – Eff. Immediately
    DPOA – Eff. on Incapacity
    Health Care Power of Attorney
    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 may take over here due to your incapacity…
    …or here, due to your death.
  • 15. What basic tools make one trust more successful than another?
  • 16. People Plan Paperwork
  • 17. THE RIGHT PEOPLE
  • 18. THE RIGHT PEOPLE
    Settlor
    Agent
    Patient
    Advocate
    Successor
    Trustee
    Beneficiaries
    Trustee
  • 19. Trust Lawyer’s Role
    Guide
    Advisor
    Writer
  • 20. A Carefully Designed Plan
  • 21. A Carefully Designed Plan
    …requires your input.
    What are your goals?
    … your expectations?
    … your priorities?
    …your wishes?
  • 22. A living trust is
    like a basket.
  • 23. A Carefully Designed Plan
    …a plan for all assets
    Funding your trust
    … with real estate?
    … with life insurance?
    …with retirement accounts?
  • 24. Well-Prepared Paperwork
  • 25. VS
  • 26. 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 as“SETTLOR”) 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 Settlor’s death.
  • 27. Declaration and Agreement of Trust
    Jo Anne Hinds Trust
    My name is Jo Anne Hinds. My address is 999 Main Street, Anytown, Michigan 49999.
    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.
    The name of my trust is the Jo Anne Hinds Trust.
    The date of this trust agreement is October 11, 2010.
    I may change (amend) or cancel (revoke) my trust at any time during my lifetime, as long as I remain competent.
    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.
  • 28. Toolsfor Success with Trusts
    The Right People
    A Carefully
    Designed Plan
    Well-Prepared
    Paperwork
  • 29. Thank you from Jo Anne Hinds Advising Families Like Yours Since 1994
    Wills, trusts, powers of attorney
    Estate planning for clients of all ages
    Estate administration and mediation services
    House calls exclusively, at no additional charge
    Weekday evening and Saturday consultations
    Free 30 minute initial telephone consultations
    Please complete the survey and be sure to include your email address
    for a copy of my helpful and informative e-newsletter.
    Thank you!