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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.
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.
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.
Terminology Review
Last Will & Testament     Declaration & Agreement of
                          Trust

Last Will & Testament     Declaration & Agreement of
                          Trust

Testator                  Settlor


Personal Representative   Trustee
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
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
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.
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).
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).
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
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.
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.
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
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.
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.
You may have to visit your banks, credit
unions, and other financial institutions to
“fund” or “transfer” your assets into your
trust.
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.
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!
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.
If you are unable to care for
yourself, your successor
trustee may take over the
role of administering the
trust for your benefit.
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.
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.
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
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
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
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.
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.
…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.
Thank you from Jo Anne Hinds
18 Years Experience Advising Families Like Yours




  Please complete the survey
 included with your materials.

 Provide your email address
  to receive helpful updates
      and special offers.


        Thank you!

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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 Please complete the survey included with your materials. Provide your email address to receive helpful updates and special offers. Thank you!