FAQ

Estate planning involves determining how an individual’s assets will be preserved, managed, and distributed after death. It also takes into account the management of an individual’s properties and financial obligations in the event that they become incapacitated.
Assets that could make up an estate include real estate, vehicles, stocks, art, collectibles, life insurance, pensions, debt, and more…
Without adequate estate planning, state laws could determine how your assets are distributed, potentially conflicting with your wishes. An effective plan provides a clear roadmap for asset distribution, reducing the likelihood of disputes among heirs. It also streamlines the process, saving time and reducing administrative costs and fees associated with probate.
It is a common misconception that estate planning is only for the wealthy. In reality, estate planning is a crucial aspect of financial planning that applies to everyone, regardless of their wealth. For instance, if you have minor children or dependents, creating an estate plan is essential. It allows you to appoint guardians and ensure financial support for those who rely on you, such as minor children.
Seeking the assistance of a skilled Michigan estate planning attorney is crucial to ensure that your estate plan not only reflects your wishes but also adheres to all legal standards. A major drawback of a do-it-yourself estate plan is the potential for mistakes or legal uncertainties, which often come to light only when it is too late. These issues can lead to costly court proceedings that drain the estate’s assets. Consequently, beneficiaries and heirs might receive significantly less—or nothing at all—when the estate is finally settled. Moreover, an estate plan is not only about death; it also safeguards you during your lifetime in cases of temporary or permanent incapacity. Given the vital importance of your health and well-being, relying on a do-it-yourself estate plan is a risk that can have significant consequences.

It is never too early to plan your estate. Everyone should have an estate plan in place, especially those with significant assets or minor children.

Common documents include Revocable Trust, Will, Durable Power of Attorney, Healthcare Power of Attorney, and Living Will. The exact number and type of documents generally depends on your individual situation.

A “Revocable Trust” is an arrangement you establish while you are alive. As the creator, or “settlor,” you typically act as the trustee, managing the property transferred into the Trust. Upon your death, a designated successor trustee steps in to manage the Trust’s affairs according to your wishes.

A Trust package comprises various documents tailored to your individual needs. These assets typically include a Revocable Trust, a Pour-Over Will, a Durable Power of Attorney, a Medical Power of Attorney, and a Living Will. The specific composition and structure of the Trust Package depend on the unique circumstances and assets involved.

Both a Will and a Trust are designed to distribute your assets after your death, but a Trust offers the distinct advantage of bypassing the probate court process. This can save your loved ones a significant amount of time and money.

The Trustee manages the Trust and its assets. If you set up a Revocable Trust, you act as trustee and retain control of the Trust assets during your lifetime. After your death, a successor trustee (named by you) will step into your shoes and manage the Trust assets according to your wishes.

When selecting individuals for roles, such as trustee, it is important to choose those who you trust implicitly—people whose judgment you value and who will honor your wishes. Consider the nature and volume of assets in your Trust, as well as the complexity of your wishes. For complex Trusts, especially those with substantial assets, naming someone with experience in handling large assets, or with knowledge in finance or investments, might be more appropriate for the trustee role.

Assets that can be placed in Revocable Trusts include bank accounts; real estate property; insurance policies; stocks, bonds, and other investment assets; tangible personal property; limited liability companies (LLCs); and cryptocurrency. However, whether you should place these assets in your Revocable Trust depends greatly on your individual situation.

Assets that you should typically not place in your Revocable Trust are retirement assets (such as IRAs, 401(k)s, and 403(b) accounts), Health Savings Accounts (HSAs), assets situated in foreign countries, vehicles, and cash.

Regardless of the amicability of your family or the simplicity of your situation, the external perspective of an experienced Michigan attorney can be invaluable. They can foresee potential issues or conflicts among beneficiaries that the person creating the Will might not anticipate.

A will is a legal document that communicates your final wishes pertaining to possessions and descendants. A will outlines what to do with your possessions, whether they are left to family, friends, or donated to charity. A will also directs what happens to other things that you are responsible for, such as naming a guardian for minor children and the management of accounts and interests.

A Will provides for the distribution of specific property that you own at the time of your death, and typically allows you to distribute your property as you wish. However, it is important to note that Michigan law generally restricts the ability to disinherit a spouse.

If you die intestate (without a will), the State of Michigan’s laws of descent and distribution will determine who receives your property by default. Generally, distribution is made first to your spouse and then to your children. If you die without a spouse or children, distribution would be made to your parents (if alive). Finally, if you are not survived by any spouse, children, or parents, distribution would be made to your siblings.

Share to surviving spouse:

http://www.legislature.mi.gov/(S(yfh5uiakrolxsf2fr3xdgetb))/mileg.aspx?page=getObject&objectName=mcl-700-2102

Share to heirs other than surviving spouse:

http://www.legislature.mi.gov/(S(yfh5uiakrolxsf2fr3xdgetb))/mileg.aspx?page=getobject&objectname=mcl-700-2103

If you pass away without a Will or other valid estate planning documents, and there are no surviving spouse or family members, your estate is transferred to the state, a process known as escheatment.

With a Will, you choose who you want to inherit your property after you pass away. With a Living Will, you outline your preferences regarding future healthcare treatments, in case you are ever unable to communicate your wishes to doctors and loved ones.

If you have a child who is under 18, it is important to have a Will in place to designate a legal guardian for your child in case of your passing.

Yes. An amendment to a Will is called a codicil and must be signed with the same formalities as a Will. Be cautious if you are creating your own codicil because if there are ambiguities between its provisions and the Will it amends, it will cause problems. It is always best to consult with an experienced Michigan attorney when changing a Will.

Yes, Michigan permits handwritten wills, but handwritten wills are not a good idea. To be valid, a handwritten will must be dated, and the material provisions in the will and the signature must be in your handwriting.

Yes, you should use your Will to name a personal representative who will manage your estate and ensure that the provisions in your Will are carried out after your death. If you do not name a personal representative, the probate court will appoint someone to be take on the job of winding up your estate.

You must be 18 years of age or older to create a valid will in Michigan.

A power of attorney is a document that allows you to give someone the authority to manage your financial affairs. This person is called your agent. Your agent can take care of your financial affairs as long as you are competent.

A “durable” power of attorney is a power of attorney that remains in effect when you are unable to make your own financial decisions (no longer competent). If you want your agent to have authority when you are unable to make your own financial decisions, your power of attorney document must be durable.

An agent can:

  1. Sign your checks,
  2. Make deposits for you,
  3. Pay your bills,
  4. Contract for medical or other professional services,
  5. Sell your property,
  6. Get insurance for you, and
  7. Do all the things you do to manage your everyday affairs.

You can give your Agent authority to do anything you could do, or you can limit your agent’s authority to do only certain things, such as sell your home.

You can name any adult or bank as your Agent. However, it is important to choose someone you trust and have confidence in. Ensure that your chosen Agent is willing and prepared to undertake this responsibility for you. You should also name successor agents who will act if your agent becomes unavailable or unwilling to act on your behalf.

Your Agent must follow your instruction and act in your best interest. The Agent must keep receipts and accurate records of your assets. The Agent must also keep a record of any actions taken on your behalf. If you ask your agent to keep you informed of his or her actions, then he or she must do so. If you ask your agent for an accounting—then your agent must provide you with one.

A Healthcare Durable Power of Attorney will name someone to make medical decisions if you are not able to make those decisions for yourself. The person named is known as the “Patient Advocate.”

The person that you name as your Patient Advocate should be a person you trust. It should be someone you would want to speak for you and that you trust to make medical decisions for you if you become permanently or temporarily unable to make your own decisions.

A Living Will states your desire regarding life-sustaining medical treatments.

The general recommendation is that you should review your estate plan every three to five years or when there is a live event. These live events may include (but are not limited to): the birth of a new child, marriage or divorce, and illness or death of a family member, beneficiary, or Agent named in your estate plan.

Probate is the court process for distributing the property of a deceased person. Estate administration involves:
  • Gathering the estate’s assets
  • Paying debts and final expenses
  • Distributing the remaining assets
An experienced probate attorney can assist with every aspect of estate administration.
There are several types of assets in which the deceased person may have owned an interest:
  • Solely owned assets
  • Jointly owned assets
  • Assets held in trust
  • Business interests
  • Life insurance proceeds
  • Retirement accounts
  • Open contracts
If the deceased person designated a beneficiary to receive an asset upon their death, it is known as a non-probate asset. These assets may not require estate administration or court filings, as they pay directly to the named beneficiary and are not governed by the deceased person’s will. Examples of non-probate assets include:
  • IRAs
  • 401(k) plans
  • Life insurance policies
  • Annuities
The current term for “executor” is personal representative. A will only nominates a personal representative. The personal representative does not have the power to act on behalf of the estate until the probate court grants power.
An insolvent estate is an estate in which debts exceed assets. Most personal representatives will benefit from hiring a lawyer who is experienced in insolvent estates.
A conservator has responsibility over the ward’s finances, whereas the guardian has responsibility over the wards health care and well-being.
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