Probate Law in Michigan
What Is a Probate Law?
A probate is a legal process that determines the validity and administration of a last will and testament. When an individual leaves behind assets, the court appoints an executor (if one is not named in the will). In either case, the appointed official collects all remaining assets, pays off any remaining liabilities, and disperses the remaining assets to beneficiaries listed in the will or to beneficiaries designated by the executor (if no will is present), all according to Michigan probate law.
How Does Michigan Probate Law and the Probate Process Work?
Locating the Will
In most cases, the decedent leaves clear direction regarding the location of the last will and testament or files one with a primary attorney. However, sometimes people have to go digging for one. In other cases, there is no will and the Michigan court-appointed executor must handle all assets.
It is also possible that the deceased created a living trust instead. A living trust is a document that places all assets into a trust and transfer to a designated trustee upon death. Living trusts do not require any probation or courts. Many parties elect to go this route for the sake of convenience and avoiding drawn-out court battles.
Michigan has 78 Probate Courts with specific jurisdiction over estate matters. A probate case will typically be handled by the court in the county where the decedent resided.
Notifying the Court
Notifying the court to open the estate is the next step. The Michigan probate law court clerk can handle this step unless there is a named executor.
After the court receives notification, a scheduled hearing takes place. This officiates the executor appointee and grants him or her legal authority to operate on behalf of the last will.
If there is no will and no designated executor, the court chooses the executor. Generally, the surviving spouse is first in line. After that, any adult children, parents, or siblings receive consideration.
Consolidating Assets
The executor must identify the decedent’s remaining assets. To do this, she or he reviews any related banking or financial documents and any other personal documents that could lead them toward recovering assets. Some examples of documents to collect are insurance records, titles, stock portfolios, and tax returns or filings.
To freeze and later close accounts, the executor must notify any financial institutions with outstanding accounts of the individual’s death. If there are any physical valuables in the decedent’s property, it is not uncommon for the executor to collect these items to prevent theft or damage.
The executor then determines the valuation of each item of the estate. This can be a lengthy process depending on the ease of locating all assets, including real estate, stocks, bonds, etc. Notifying creditors is the next step.
Notifying Creditors
Generally, the executor notifies creditors associated with the estate so they can claim if they have outstanding balances. Creditors have a specific time frame in which to file a claim, and this window can vary depending on state law.
Under Michigan law, notice must be provided to known creditors by mail, giving them one month to make a claim. In addition, potential creditors must be notified by a publication in the local newspaper. Potential creditors then have 4 months from the date of publication to claim a Michigan estate.
Squaring Away Final Payments
The executor pays any funeral expenses (unless the family covers them) and any debts or taxes from the estate. The executor determines which creditor claims are accurate. Then, the executor squares away any outstanding debts to clear the estate of all obligations before being dispersed according to the will.
Proceeding With the Court
After valuing all the decedent’s assets and paying all outstanding debts, the executor submits a report detailing all estate spending to the Michigan court. At this point, a judge reviews the materials. Assuming everything was done correctly, they render a decision to clear the executor to move forward with the final step.
Executing the Last Will and Testament
At this point, the executor disperses the assets to the designated beneficiaries laid out in the will. Depending on how detailed the will is, this could either be a simple process or it may divide the remaining family. A Michigan probate law attorney can help you or a loved one avoid mistakes and counsel you on the best course in the event of a family estate battle.
Michigan legislation provides for two types of probate, informal and formal. Informal probate is common in Michigan, does not require a will, and is available when there are no disputes. The executor, once approved, can administer the estate without court oversight. If formal probate is needed, a judge will approve the actions of the executor and hear any disputed claims.
If there is no last will and testament, the executor assigns beneficiaries by Michigan state laws. Generally speaking, the surviving spouse is first in line to receive any remaining assets. After that, the decedent’s children come next. Any surviving siblings would be next. From there, the executor works down through the surviving family based on their direct relationship.
Is Probate Law Necessary?
No. There are alternatives to probating a will, but this depends on the circumstances surrounding the decedent. The larger, more complex estates require attention to detail and patience as the executor works through all the different assets. Smaller estates are straightforward, which means involving the Michigan probate law court may not be necessary to settle the estate.
Under Michigan statute, some small estates can be distributed without going through the probate process. Property from these estates can be transferred with just an affidavit and a death certificate. Michigan defines small estates as those containing no real property and with a total value under a certain amount. The State of Michigan adjusts this amount yearly for inflation, and in 2020 it was $24,000.
What Are the Differences Between a Living Trust and a Will?
Living trusts offer a way to avoid probate, but that’s just one of the key distinctions between a living trust and a will. A living trust is only effective if it’s properly funded with your assets during your lifetime. Without transferring assets into the trust, it essentially holds no value upon your passing.
In contrast, a will does not require funding. Instead, it directs where your assets should go after your death. Choosing between a living trust and a will depends on your unique circumstances, such as the likelihood of losing mental capacity or your proximity to end-of-life decisions. There’s no one-size-fits-all solution, so careful consideration is essential.
Setting up where your assets go after you die is an important decision. This is why you should consult with a Michigan probate law attorney to make the correct decision.
Work With an Experienced Local Probate Law Attorney in Michigan
Probate law attorneys assist with valuing your total assets and can provide insight into what the best move would be for you. Are you in need of a Michigan probate law attorney who can help you and preserve the future of your family? We can even help you connect with an attorney across Michigan state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced probate law lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.