Powerpoint presentation from January 21, 2012 Wills & Trusts Class offered by Holt Community Education, Holt, Michigan. Instructor: Jo Anne Hinds, Attorney at Law

1. Holt Community Education
January 21, 2012
This class is intended for educational purposes
only and should not be deemed legal advice. Any
information you choose to share in this classroom
setting is not subject to attorney-client privilege.

2. Wills vs. Trusts – What’s the Difference?
Last Will & Testament Living Trust Agreement
 Assets passing through will  Assets passing through trust
subject 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 for
your 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, you’ll need to supply some
information 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 & Testament
Tells the Probate Court:
- Who You Are.
- Who Your Natural Heirs Are.
- Who Will Raise Your Minor
Children and/or Manage the
Children’s Inheritance Until
Age 18.
- Who Should Settle Your Estate.
- Who Should Receive Your Estate,
And How it Should be Divided
Upon Your Death.

8. At Your Death:
With a Will, your
personal representative
administers your assets
that are subject to
Probate.

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 Court
and mailed to all Interested Parties. There are significant costs to
probating a Will, including Court Costs and Fees, Inventory Fees and
Attorney Fees.

11. Probate takes a minimum of 8 months to a year, but can take as long
as two- three years or many more, depending on the circumstances.

12. Once the Personal Representative has complied with all probate
requirements, the Estate may be distributed to those entitled to it, in
the 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 Site
Preparation, 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 Trust
Agreement States:
- Who You Are
- Who is Responsible for
Administering Your Trust
- Who Receives Your Trust
Estate, At What Time & For
What Purpose
-What the Trustee Needs to
Know to Do Their Job

16. A Trust Agreement Takes A Little Extra Work
You’ll typically do more work to SET UP a TRUST
than you would with a WILL.
You’ll gather information about your assets, so
that your trust can be funded.

17. You may have to visit your banks, credit
unions, and other financial institutions to
“fund” or “transfer” your assets into your trust.

18. You can now do some of the work online.
Be thorough. Double-check to make sure each
asset has been correctly funded to the trust.

19. You don’t lose control over the assets in
your trust – in fact, with a typical
revocable trust, you’ll be serving as
your own trustee for your competent
lifetime.
So… for example, when you go grocery
shopping, you are using your powers as
trustee to expend trust funds for your
benefit.
And there are no limits!

20. You can change banks or financial
advisors, you may sell your home
and buy a new one – or even sell
your home and travel the
world, spending every last dime.
Just because your assets are held
by a revocable trust doesn’t
restrict your ability to do what
you please with your assets
during your lifetime.

21. If you are unable to care for
yourself, your successor
trustee may take over the role
of administering the trust for
your benefit.

22. At Your Death:
With a Trust, Your
Trustee Administers
Your Estate Subject to
the Rules of the Trust.

23. By avoiding probate, your Trust minimizes costs and
expenses, saving more of your estate for your beneficiaries.

24. Trusts are often used to maintain
control of a beneficiary’s
inheritance, providing funds for a
college education, to buy a home or
start a business.

25. Same Apple Tree.
Different Instructions.
Which Estate Plan Would You
Rather Have?

26. The Timeline Illustration
Understanding the Role of Potential Documents in Your Estate Plan
Today Incapacity Death
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.

27. The Timeline Illustration
Understanding the Role of Potential Documents in Your Estate Plan
Toda Incapacity Deat
y DPOA – 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 Illustration
Understanding the Role of Potential Documents in Your Estate Plan
Toda Incapacity Deat
y DPOA – Eff. Immediately h
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.

29. The Timeline Illustration
Understanding the Role of Potential Documents in Your Estate Plan
LIFETIME DOCUMENTS
Toda Incapacity Deat
y DPOA – 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, 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.

30. The Timeline Illustration
Understanding the Role of Potential Documents in Your Estate Plan
LIFETIME POST-DEATH
Toda Incapacity Deat
y DPOA – Eff. Immediately h
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.

31. The Timeline Illustration
Understanding the Role of Potential Documents in Your Estate Plan
LIFETIME POST-DEATH
Toda Incapacity Deat
y DPOA – Eff. Immediately h
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 …or here, due to your
may take over here death.
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 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.

33. Declaration and Agreement of Trust
Jo Anne Hinds Trust
1. 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 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, investment
s, businesses

35. Jo Anne Hinds - Attorney at Law
Advising 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 consultations
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