Rockford Community Education: Tools for Success with Trusts

725 views

Published on

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.

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
725
On SlideShare
0
From Embeds
0
Number of Embeds
8
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Rockford Community Education: Tools for Success with Trusts

  1. 1. Toolsfor Success with Trusts<br />This presentation is intended for educational purposes only. <br />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.<br />Jo Anne Hinds<br />Attorney at Law<br />Rockford Public Schools <br />Community Education <br />June 1, 2011 <br />
  2. 2.
  3. 3. A Few Things You Need to Know<br />I am not here to sell you anything.<br />This is not a lecture! Good estate planning starts with a good conversation.<br />Creating a trust is a choice you may make to simplify your estate, but trusts (or wills)aren’t legally requiredfor anyone.<br />
  4. 4. Let’s do a little background research<br />
  5. 5. What is a trust?<br />A trust is created when legal ownership is separated from equitable ownership.<br />
  6. 6. Wills vs. Trusts – What’s the Difference?<br />Last Will & Testament<br />Assets passing through will subject to probate<br />Court costs <br />Public court file<br />Less control of assets<br />Provides for distribution of your assets at death<br />Living Trust Agreement<br />Assets passing through trust not subject to probate<br />No court costs<br />Private agreement<br />More control of assets<br />Provides for your care for your lifetime and distribution of your assets at death<br />
  7. 7. The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan<br />Today<br />Death<br />Incapacity<br />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.<br />
  8. 8. The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan<br />Today<br />Death<br />Incapacity<br />DPOA – Eff. Immediately<br />DPOA – Eff. on Incapacity<br />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.”<br />
  9. 9. The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan<br />Today<br />Death<br />Incapacity<br />DPOA – Eff. Immediately<br />DPOA – Eff. on Incapacity<br />Health Care Power of Attorney<br />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.<br />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.<br />
  10. 10. The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan<br />LIFETIME DOCUMENTS<br />Today<br />Death<br />Incapacity<br />DPOA – Eff. Immediately<br />DPOA – Eff. on Incapacity<br />Health Care Power of Attorney<br />Last Will & Testament<br />These documents appear on the LIFETIME side of the timeline. <br />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.<br />
  11. 11. The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan<br />LIFETIME <br />POST-DEATH <br />Today<br />Death<br />Incapacity<br />DPOA – Eff. Immediately<br />DPOA – Eff. on Incapacity<br />Health Care Power of Attorney<br />Last Will & Testament<br />Assets passing through a Last Will & Testament are subject to Probate. Your family can expect the following if your assets are subject to probate:<br /><ul><li>Filing fees and court costs ($150 + $12 + Inventory Fee)
  12. 12. A minimum of 6-8 months, longer in many circumstances
  13. 13. Attorney fees, paperwork and timelines to be met</li></li></ul><li>The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan<br />LIFETIME <br />POST-DEATH <br />Today<br />Death<br />Incapacity<br />DPOA – Eff. Immediately<br />DPOA – Eff. on Incapacity<br />Health Care Power of Attorney<br />Last Will & Testament<br />Revocable Living Trust<br />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. <br />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.<br />
  14. 14. The Timeline IllustrationUnderstanding the Role of Potential Documents in Your Estate Plan<br />LIFETIME <br />POST-DEATH <br />Today<br />Death<br />Incapacity<br />DPOA – Eff. Immediately<br />DPOA – Eff. on Incapacity<br />Health Care Power of Attorney<br />Last Will & Testament<br />Revocable Living Trust<br />You serve as your own trustee for your lifetime, as long as you are competent to do so.<br />A successor trustee may take over here due to your incapacity…<br />…or here, due to your death.<br />
  15. 15. What basic tools make one trust more successful than another?<br />
  16. 16. People Plan Paperwork<br />
  17. 17. THE RIGHT PEOPLE<br />
  18. 18. THE RIGHT PEOPLE<br />Settlor<br />Agent<br />Patient <br />Advocate<br />Successor <br />Trustee<br />Beneficiaries<br />Trustee<br />
  19. 19. Trust Lawyer’s Role<br />Guide<br />Advisor<br />Writer<br />
  20. 20. A Carefully Designed Plan<br />
  21. 21. A Carefully Designed Plan<br />…requires your input. <br />What are your goals?<br />… your expectations?<br />… your priorities?<br />…your wishes?<br />
  22. 22. A living trust is<br />like a basket.<br />
  23. 23. A Carefully Designed Plan<br />…a plan for all assets<br />Funding your trust<br />… with real estate?<br />… with life insurance?<br />…with retirement accounts?<br />
  24. 24. Well-Prepared Paperwork<br />
  25. 25. VS<br />
  26. 26. Not all trusts are created equally…<br />JO ANNE HINDS REVOCABLE LIVING TRUST NO. 1<br />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.<br />
  27. 27. Declaration and Agreement of Trust<br />Jo Anne Hinds Trust<br />My name is Jo Anne Hinds. My address is 999 Main Street, Anytown, Michigan 49999. <br />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. <br />The name of my trust is the Jo Anne Hinds Trust. <br />The date of this trust agreement is October 11, 2010. <br />I may change (amend) or cancel (revoke) my trust at any time during my lifetime, as long as I remain competent.<br />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. <br />
  28. 28. Toolsfor Success with Trusts<br />The Right People<br />A Carefully <br />Designed Plan<br />Well-Prepared <br />Paperwork<br />
  29. 29. Thank you from Jo Anne Hinds Advising Families Like Yours Since 1994<br />Wills, trusts, powers of attorney<br />Estate planning for clients of all ages<br />Estate administration and mediation services<br />House calls exclusively, at no additional charge<br />Weekday evening and Saturday consultations <br />Free 30 minute initial telephone consultations<br />Please complete the survey and be sure to include your email address<br />for a copy of my helpful and informative e-newsletter.<br />Thank you!<br />

×