Estate Planning and How it Can Affect Your Family.

What is Probate?

• Probate is a legal process
• A Will still passes through probate
• The historical purpose of probate court
• Your family has no control

What causes Probate?

• Probate is a Latin derivative that means “to prove.”
• A will must be proven before the court.
• The existence of a will requires probate court.

The Probate Challenge

• Time: During the entire probate process your estate and its assets are frozen.
  • The average length of a probate proceeding is 6 months to 18 months.
  • The cost to maintain the property and pay court fees are passed on to your family.
• Contestability: Every estate probated in Michigan is required by state law to be open for creditors for a mandatory period of six months.
  • During that time any person may file a claim for assets in the estate. This causes a delay of closing the probate estate
  • A claim leaves your family with two options:
    • Pay the claim
    • Pay an attorney to fight it
  • Also encourages ugly disputes amongst heirs contesting what “you really wanted to have happened.”
• Loss of Privacy: Probate will cause your estate to have a public record that anyone can access or copy by going to the county courthouse, or possibly via the Internet.
  • What you are worth, to whom you gave your money and property, and how you distributed your legacy is now public knowledge.
• Fees: The average cost of probate is about 5% to 10% of the value of your estate.
  • This includes filing, and legal and inventory fees based on the gross value of the estate.

How Probate Will Affect You

• Loss of:
  • Money
  • Time
  • Control
  • Privacy
• A Process that will be costly
• A probate judge will determine how your legacy is passed on to your heirs

What is Living Probate?

• What is a guardian?  A guardian is a person appointed by the probate court and given the power to make some or all decisions about the care of another person.
• What is a conservator?  A conservator is a person or corporation appointed by the probate court to manage another person’s property and financial affairs.

The Value of Your Estate

• Home
• Vacation or rental property
• Investments
• Bank Accounts
• Savings Accounts
• Personal Property
• Collections (Guns, antiques, Cars, etc.)

Revocable Living Trust

• Holds title of your property
• You are the primary trustee
• You retain control of all your assets
• You determine how your assets will be distributed.

Advantages of a Revocable Living Trust

• Bypass the Probate Court Process
• Estates in Trusts can be settled quickly
• Saves time, probate costs, and legal fees

Why People Get Trusts

• 6 Major Reasons for creating a Trust
  • Maintain control
  • Flexibility
  • Privacy
  • Quick transition
  • Preserve estate value
  • Peace of mind

Customizing Your Trust

• You maintain control
• A Trust is flexible
• Easy to set up and maintain
• Provides for minor children

Who Is Involved With Your Trust

• Settlor: You
• Trustee: Controls the trust (You)
• Beneficiary: Who the trust benefits
• Successor Trustee: Whomever you choose
  • Must follow your wishes
  • Trust becomes “Irrevocable”

What’s Placed in Your Trust?

• Real estate and financial assets
• You have total control over these assets
• Our experienced team will help
• Placing assets in your trust is vital to avoid the probate court process

Beyond A Living Trust

• A comprehensive Estate Plan includes:
  • Certificate of trust & notarized summary
  • Durable Power of Attorney for Financial
  • Durable Power of Attorney for Health Care
  • H.I.P.A.A Medical Information Release Form
  • A pour-over Will
  • Final Funeral Instructions
  • Transferring assets into the trust (funding)
  • Life Insurance and Financial Investments assessment

How A Trust Will Help You

• Allows you to maintain control
• Designed to fit your specific needs
• Maintains privacy
• Saves your family time and money during an emotionally difficult time
• Avoids legal expenses
• Peace of mind for you & your family

Creating Your Personal Estate Plan

• Complete attorney retainer agreement and client information sheet
• List people who will be involved with your trust
• List real estate, financial investments and personal valuables
• Sign the documents and submit a deposit
• Schedule trust delivery & review
• Friends & family who may need estate planning help

How To Take The Next Step

• Will a Trust preserve your estate?
• Is a Trust affordable vs. Probate Court?
• Do you understand how a trust works?
• Any questions or concerns.

Here Are Your Options

• A Will / No Plan
• Cost of Probate and Attorney Fees
• Long Probate Delays (6 to 18 months)
• No Privacy: Public
• Less Control: Courts Have Control
• No Guardianship
• A Revocable Trust
  • Funding Assistance
  • Estate Settlement Assistance
  • No Probate Delays
  • Completely Private
  • No Executor Fees
  • No Probate Fees
  • Complete Control
  • Guardianship Included