THE LEGAL ASPECTS OF RETIREMENT PLANNING

How God Would Have Us Steward Resources

For Our Needs And Those Of The Next GenerationProverbs 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.

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 that manifests in a

Spiritual and natural inheritance that

endures

Importance of Legacy Planning

Why Legacy Planning? It Can:

Encourages Godly principles Minimizes family disputes Controls management of

resources Keeps family informedControls legal costs Avoid court involvement Helps to avoid the nursing home

Your Key Objectives

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

2. Identify Your Trusted Assistant

3. Identify Your Needs

4. Identify The Needs Of The Next Generation

5. Set A Time Table For Completing Your Legacy Plan

6. Take Decisive Action!

Meet With An Attorney Get Your Documents Drafted Have A Family Meeting Update Existing Documents

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 writingAn adult can name their guardian in a Power of AttorneyA person or someone interested in the person can bring a court petitionA spouse can name the other’s guardian in a Will

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

WHEN IS A GUARDIAN NECESSARY?

oWhen a child you know needs helpoWhen your adult loved one is disabled and has an estate oWhen your adult loved one needs help and does not have a POA

HOW IS A CONSERVATORSHIP ESTABLISHED?

A Conservator Can Only Be Appointed By A Judge After A Petition Is Filed In The

County Probate Court

WHO CAN BECOME A GUARDIAN OR CONSERVATOR?

FOR AN ADULT:• Attorney in fact1. Spouse2. Adult child3. Parent4. Caregiver5. Close relative6. Court’s choice

FOR A CHILD:•The parent’s choice1.The child’s choice 2.The Caregiver3.A close relative4.The Court’s choice

TRUSTS

A. Trust Characteristics

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 conditions3. Allows transfer of assets on a schedule4. Can control overall cost of asset transfer5. Beneficiaries have a right to know their

stake in the Trust

6. Beneficiary can be eliminated if they contest trust without probable cause

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. )

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.

 

TRUSTS

1. Give notice of trust existence & its terms to beneficiaries

2. Maintain adequate records and provide annual accountings to beneficiaries who ask

3. Post a bond if required 1. Obtain Employer Identification number from

IRS 5. File tax returns and pay taxes1. Keep trust assets separate from personal

assets7. Invest trust assets carefully & protect them

C. Duties of Trustee

Lady Bird Deeds

1.Announces intention of owner to transfer to another at death but

not before

1.Eliminates the need for a Will to transfer real estate

2.Is safer than a Quit Claim Deed

3.Avoids property becoming subject to the grantee’s debts

In Trust For Financial Accounts

1.Allows Transfer of Financial Assets Without A Will

2.Limits Recipient’s Access To Asset Until After Your Death

3.Can Be established at no cost

2.Does not limit your control of the asset

POWER OF ATTORNEY1. 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

1. It can be revoked by you at anytime2. A patient advocate designation only

delegates medical decisions 

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:

1. Detroit Area Agency on Aging

2. Detroit Wayne County Community Mental Health Agency

3. Michigan.gov/mdch4. Macombcountymi.gov/

probate court5. Oakgov.com/courts/

probate6. Wcpc.us7. Legislature.mi.gov/

basicsearch8. M.C.L.A. 700.1101 et.

seq.