Education and training program in the hospital APR.pptx
Comparison of Wills & Trusts: Holt 5-9-2012
1. Wills & Trusts
A Comparison
Holt Community Education
Jo Anne Hinds
Thank you for joining us today! A few things to Attorney at Law
note before we begin:
The presentation and written materials provided
today are intended for educational use only and do
not constitute legal advice.
While I encourage you to ask questions, please
keep in mind that you have no expectation of
privacy or confidentiality in the information you
may choose to share in class.
2. Will Terminology
A Will is formally known as a Last
Will & Testament.
If you are signing a Will, you are
known as a Testator.
The person you ask to settle your
estate with a Will is known as the
Personal Representative.
3. Trust Terminology
A trust is governed by a
Declaration & Agreement of
Trust.
If you are signing a Trust, you are
known as a Settlor.
The person you ask to settle your
Trust is known as the Trustee.
4. Terminology Review
Last Will & Testament Declaration & Agreement of
Trust
Last Will & Testament Declaration & Agreement of
Trust
Testator Settlor
Personal Representative Trustee
5. A Last Will & Testament
Tells the Probate Court:
- who you are
- who your natural heirs are
- who will raise your kids if
cannot
- who should settle your estate
- who should receive your
estate and how it should be
divided
6. 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
- anything else the trustee
might need to know to do
his or her job
7. Comparing by Cost
Wills generally cost less to
prepare, but much more to
administer after death.
Trusts generally cost more to
prepare, but usually less to
administer after death.
8. Costs with a Will
Preparation – in many cases a will is
easier to prepare, so attorney fees
to prepare a will are less.
Filing for safekeeping with court –
current cost is $25 per will.
Probate after death for typical estate
- $150 filing fee, inventory fee of +/-
$1000, certified copy fees, attorney
fees ($2500 - $10,000 or more).
9. Costs with a Trust
Preparation – attorney fees will be 3-4x
higher, or more
Trusts are not filed with the court for
safekeeping, but can be registered (not
common).
Administration after death for typical
trust – NO filing fee, NO inventory
fee, NO certified copy fees, attorney
fees ($0 - $10,000 or more, but
generally much less than with probate).
10. Cost Review
Last Will & Testament Declaration & Agreement of
Trust
Attorney Fees to Prepare Attorney Fees to Prepare
Generally Less Generally 3-4x More
$150 Probate Court Filing NO Probate Court Filing Fee
Fee at Death
$12 x ? Certified Copy Fees NO Certified Copy Fees
+/- $1000 Court Inventory Fee NO Inventory Fee
Attorney Fees to Administer Attorney Fees to Administer
Generally Higher Generally Less
11. Purpose of a Simple Will
Set forth evidence of competence.
State burial/cremation wishes.
Nominate personal representative.
Nominate guardian and/or conservator
for children who may be minors at
parent’s death.
Make gifts of cash/personal property.
Direct payment of claims.
State beneficiaries of remaining estate.
12. Purpose of Declaration &
Agreement of Trust
Confirm existence of trust.
Confirm rights reserved.
Nominate successor trustees.
Set forth rules for using trust assets.
Make gifts of cash/personal property.
Direct payment of claims.
Direct distribution of remaining trust,
including contingent gifts.
13. Exclusive Purposes
Exclusive to Will Exclusive to Trust
Setting forth evidence of Confirm existence of trust
competence
Statement of burial/cremation Confirm rights reserved
wishes
Nominate personal Nominate successor trustees
representative
Nominate guardian for minor Set forth rules for using trust
children assets, including making
contingent gifts
14. 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.
15. 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.
16. You may have to visit your banks, credit
unions, and other financial institutions to
“fund” or “transfer” your assets into your
trust.
17. 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.
18. 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!
19. 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.
20. If you are unable to care for
yourself, your successor
trustee may take over the
role of administering the
trust for your benefit.
21. The Timeline Illustration
Understanding the Role of Potential Documents in Your Estate Plan
Today Incapacity Death
For this illustration, let’s say that we are meeting to sign some
typical estate planning documents today. On the timeline, you’ll
see three points:
1. today,
2. a point representing the possibility of your incapacity,
3. and death.
22. The Timeline Illustration
Understanding the Role of Potential Documents in Your Estate Plan
LIFETIME POST-DEATH
Last Will & Testament
Today Incapacity Death
Document: Last Will & Testament
Use: the probate process is a “notice” system requiring
delivery and filing of paperwork within strict timelines
set forth by the court, an inventory fee is charged by
the court based upon the value of the assets
passing through the probate process.
23. The Timeline Illustration
Understanding the Role of Potential Documents in Your Estate Plan
LIFETIME POST-DEATH
Last Will & Testament
Today Incapacity Death
Revocable Living Trust
Document: Revocable Living Trust
Use: effective immediately when created, but dependent
upon trust funding to accomplish its objectives.
holds ownership of assets to avoid probate,
provides additional control over assets, reduces
costs & stress on surviving family members
24. The Timeline Illustration
Understanding the Role of Potential Documents in Your Estate Plan
LIFETIME POST-DEATH
Trustee Administers for OTHERS
Trustee Administers for YOU
You Create & Fund Trust
PR Stands in YOUR Legal Shoes
Today Incapacity Death
Revocable Living Trust
25. Environmental Impact
Probate of Will (Notice Administration of Trust =
System) = More Paperwork Less Paperwork
More frequent, heavier Less frequent, lighter mailings
mailings to more people (or email)
More printing, copying, filing Less printing, copying, filing
More paperwork clogs up an Courts typically not involved
already busy court system
26. My Role as Your Attorney
I offer guidance and advice on how
to accomplish your plan.
I advise you of the consequences of
your choices, offering you
alternatives when appropriate.
I prepare documents which
simply, accurate and thoroughly
accomplish your plan.
27. The traditional style…
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 APRIL 21, 2012, 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.
28. …vs. writing trusts for today
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 April 21, 2012.
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.
29. Thank you from Jo Anne Hinds
18 Years Experience Advising Families Like Yours
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