THE LEGAL ASPECTS OF RETIREMENT PLANNING

1. THE LEGAL ASPECTS OF RETIREMENT PLANNING • How God Would Have Us Steward Resources • For Our Needs And Those Of The Next Generation • Proverbs 13:22 • A good man leaveth an inheritance to his children's children: and the wealth of the sinner is laid up for the just.

2. LEGACY PLANNING WORKING DEFINITION: • A process of visionary urgency and deliberate actions … reasonably calculated to impact the next generation, or progeny, with Godly character, and impartation of wisdom, truth, and grace thatmanifests in a Spiritual and natural inheritance that endures

3. Importance of Legacy Planning • Why Legacy Planning? It Can: • Encourages Godly principles • Minimizes family disputes • Controls management of resources • Keeps family informed • Controls legal costs • Avoid court involvement • Helps to avoid the nursing home

4. Your Key Objectives 1. Organize Your Important Papers and Complete An Estate Plan Questionnaire

5. 2. Identify Your Trusted Assistant

6. 3. Identify Your Needs

7. 4. Identify The Needs Of The Next Generation

8. 5. Set A Time Table For Completing Your Legacy Plan

9. 6. Take Decisive Action! • Meet With An Attorney • Get Your Documents Drafted • Have A Family Meeting • Update Existing Documents

10. HOW IS A GURDIANSHIP ESTABLISHED? • A Guardianship can be established in several ways: • A parent can name their child’s guardian in a Will, or other signed writing • An adult can name their guardian in a Power of Attorney • A person or someone interested in the person can bring a court petition • A spouse can name the other’s guardian in a Will

11. WHAT IS A GUARDIAN REQUIRED TO DO? • A Guardian Must: • Visit the Ward regularly if not cohabitating • Secure basic needs for the Ward • Secure medical and social services for the Ward • See to the educational needs of a minor • Care for the Ward’s basic personal property

12. WHEN IS A GUARDIAN NECESSARY? • When a child you know needs help • When your adult loved one is disabled and has an estate • When your adult loved one needs help and does not have a POA

13. HOW IS A CONSERVATORSHIP ESTABLISHED? A Conservator Can Only Be Appointed By A Judge After A Petition Is Filed In The County Probate Court

14. WHO CAN BECOME A GUARDIAN OR CONSERVATOR? • FOR A CHILD: • The parent’s choice • The child’s choice • The Caregiver • A close relative • The Court’s choice • FOR AN ADULT: • Attorney in fact • Spouse • Adult child • Parent • Caregiver • Close relative • Court’s choice

15. TRUSTS 1. Not intended to be court supervised but, it can be for the life of the trust, or for a limited purpose 2. Allows transfer of assets with conditions 3. Allows transfer of assets on a schedule 4. Can control overall cost of asset transfer 5. Beneficiaries have a right to know their stake in the Trust 6. Beneficiary can be eliminated if they contest trust without probable cause • A. Trust Characteristics

16. LAST WILL AND TESTAMENT • Summary of what you have and who you want to have it • You can give assets away to individual people or, • You can give assets away to classes of people (my grandchildren, my siblings, etc. )

17. LAST WILL AND TESTAMENT • You can also execute a Holographic Will. It’s hand written and it does not need witnesses • Notarization of a Will is not required - but it is a good idea to eliminate claims of some technical defects - this is called a Self Proved Will • If there is no Will, the Michigan Intestate Succession rule governs.

18. TRUSTS C. Duties of Trustee • Give notice of trust existence & its terms to beneficiaries • Maintain adequate records and provide annual accountings to beneficiaries who ask • 3. Post a bond if required • Obtain Employer Identification number from IRS • 5. File tax returns and pay taxes • Keep trust assets separate from personal assets • 7. Invest trust assets carefully & protect them

19. Lady Bird Deeds • Announces intention of owner to transfer to another at death but • not before • Eliminates the need for a Will to transfer real estate • Is safer than a Quit Claim Deed • Avoids property becoming subject to the grantee’s debts

20. In Trust For Financial Accounts • Allows Transfer of Financial Assets Without A Will • Limits Recipient’s Access To Asset Until After Your Death • Can Be established at no cost • Does not limit your control of the asset

21. POWER OF ATTORNEY • A power of attorney will transfer responsibility for your business affairs to another trusted person while you are disabled • 2. The power of attorney is a private document created without court involvement • 3. It can be as limited or as broad as you desire • It can be revoked by you at anytime • A patient advocate designation only delegates medical decisions

22. WHERE CAN I GO FOR MORE INFORMATION? Many governmental/ non profit agencies and court systems provide a wealth of information. A few are listed below: • Detroit Area Agency on Aging • Detroit Wayne County Community Mental Health Agency • Michigan.gov/mdch • Macombcountymi.gov/probate court • Oakgov.com/courts/probate • Wcpc.us • Legislature.mi.gov/basicsearch • M.C.L.A. 700.1101 et. seq.