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Wills & Trusts Class - Rockford Public Schools

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Powerpoint presentation from Wills & Trusts class hosted by Rockford Public Schools Community Education at the Freshman Center April 21, 2010.

Powerpoint presentation from Wills & Trusts class hosted by Rockford Public Schools Community Education at the Freshman Center April 21, 2010.

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  • Parents today want to ensure that resources in their estate would be used for their children to continue extracurricular pursuits, to go to camp, travel with extended family and attend college – even if Mom and Dad weren’t here to look after them.Rules can be set that allow funds earmarked for education to be used very broadly for educational pursuits of any kind - or very narrowly, such as only for tuition and books at an accredited university it’s your choice.It’s important to carefully balance your desire for control against the possibility that your trustee may encounter future circumstances you may not have considered. Giving your trustee some discretionary authority ensures that he (or she) will have the authority to do whatever is necessary to ensure your wishes are carried out in the best interests of your children.
  • Transcript

    • 1. Wills & Trusts for a New Generation
      A Busy Family’s Guide to Wills & 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 seminar participant and Attorney Jo Anne Hinds.
      Jo Anne Hinds
      Attorney at Law
      Rockford Public Schools
      Community Education
      April 21, 2010
    • 2. Families today are making smarter choicesfor the road ahead.
      Tonight we’ll learn how to…
      • simplify your estate
      • 3. reduce administrative costs
      • 4. reach your goals
    • …and what can happen if you don’t.
      Would you want
      a JUDGE to decide?
      • who will raise your children, if they are under the age of 18
      • 5. who will administer your estate
      • 6. who will receive your estate
      • 7. who will make medical decisions for you if you can’t make them yourself?
    • 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
    • 8. With a Living Trust…
      You can simplify the administration of your estate
      You can reduce administrative costs.
      You can have an estate plan that accomplishes your objectives.
      Let’s find out how…
    • 9. 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.
    • 10. 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.”
    • 11. 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.
    • 12. 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.
    • 13. 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)
      • 14. A minimum of 6-8 months, longer in many circumstances
      • 15. 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.
    • 16. 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.
    • 17. A living trust is
      like a basket.
    • 18. You can simplify your estate.
      Be organized!
      Get it done right.
      Choose the right people for the right roles.
    • 19. You can reduce administrative costs.
      Choose your
      legal counsel wisely.
      Avoid unnecessary
      court proceedings
      during your lifetime.
      Avoid probate at death.
    • 20. You can have an estate plan that accomplishes your goals.
      Identify your expectations
      and priorities.
      Clearly communicate your goals to your attorney and carefully review your documents before signing.
      Review your estate plan every 3-5 years to make sure your plan remains on target.
    • 21. What if the future brings unforeseen changes?
      Keep trust agreements
      funded correctly
      Amend or restate trust
      terms that are no longer
      appropriate/accurate
      Update fiduciary roles
      whenever necessary
    • 22. The New Michigan Trust Code
      Effective April 1, 2010
      New Code (MTC) based upon Uniform Trust Code (UTC)
      UTC has been adopted in some form by 22 states and District of Columbia
      In Michigan:
      MTC serves as default in most circumstances.
      MTC assumes all trusts are revocable.
      MTC remains a part of EPIC.
      MTC creates uniform standard of competency.
      MTC stated purposes: to establish a comprehensive trust code permit expansion of trust practices
      and provide certainty.
    • 23. What Can You Do Yourself to Prepare?
      Make a list of your beneficiaries
      Note if there are strings attached to the gifts
      Make a list of people you trust to carry out your wishes (with at least one alternate)
      Make a list of special items you’d like to give
      Make a list of your assets – real estate, financial accounts, stocks, investments, businesses
    • 24. Jo Anne Hinds Advising Families Just 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!

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