Powerpoint presentation illustrating various points of February 24, 2010 community education class offered in Holt, Michigan.

1. This Old Trust: A Guide to Renovating Your Trust Agreement Jo Anne Hinds Attorney at Law Holt Community Education February 24, 2010

4. Don’t Let Your Trust End Up in Court! Avoiding Probate a Priority? Even with a trust agreement, your estate can end up in court when things go wrong!

5. Wills vs. Trusts – A Review of the DifferencesA Revocable Trust has become the “functional equivalent of a Will.” Last Will & Testament Assets passing through will subject to probate Court costs Public court file Less control of assets Only provides for distribution of your assets at death Revocable Trust Agreement Assets passing through trust not subject to probate Usually no court costs Private agreement More control of assets Provides for your care for your lifetime and distribution of your assets at death

6. 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.

7. 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.”

8. 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.

9. 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.

11. A minimum of 6-8 months, longer in many circumstances

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 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.

14. A living trust is like a basket. Understanding Trust Funding

15. 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

16. What Can You Do Yourself to Prepare? Review your trust agreement carefully, if you aren’t sure if it meets your expectations, consult with an attorney who can explain it to you. Express, in your own words, what you expect your trust to accomplish. Ask your attorney if your needs have been met by the document as it is currently written. Document changes in assets, beneficiary designations, births, deaths, divorces and other family events. Ask your attorney to explain any impact on your plan. Update your plan whenever needed and without delay.

17. 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.

18. Thank you from Jo Anne Hinds Advising Families 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!