Michigan’s probate law covers the process of administering a deceased person’s estate and guarantees that the person’s assets are divided in accordance with either the will or, in the absence of a will, state law. Covering the basics of probate can make the law more accessible for executors, heirs, and beneficiaries of an estate.
However, failure to plan properly can leave the decision-making up to state officials, and your wishes may not be followed.
The experts at CF Legal in Michigan put together this brief but informative guide about the process:
Step 1: Determine the Necessity of Probate
Some estates in Michigan can avoid probate. Small estates with a value less than $27,000 (a figure that is periodically adjusted for inflation) can use a simple process involving a few legal documents and signatures to sidestep the process.
Property jointly owned with another person, assets held in a trust, life insurance proceeds paid to named beneficiaries, and payable-on-death bank accounts are also excluded from probate.
Step 2: File the Petition
If probate must occur, the first step is to file a petition with the local probate court in the county where the deceased lived. This petition asks that the court approve the appointment of a personal representative (executor) to administer the estate. The court then holds a hearing to consider the petition.
Step 3: Notify Interested Parties
After the court appoints a personal representative, the representative must give notice to all interested parties. These parties include:
- Heirs
- Beneficiaries
- Creditors
Under Michigan law, notice to creditors is especially important. After all, many estates contain debts that must be settled before any assets can be distributed to heirs or beneficiaries. Notice allows creditors to file claims against the estate.
Step 4: Inventory and Appraise Assets
The deceased’s assets must be counted and valued. This is done by the personal representative, who must then submit the information to the court. This inventory will include several different types of assets, such as real estate, bank accounts, personal property, and any number of investments. Law firms like CF Legal in Michigan are very familiar with this process.
Step 5: Settle Debts and Taxes
The personal representative must pay any owed debts and taxes before distributing assets to beneficiaries. Michigan law allows creditors a four-month period from the date of notice to make claims. The estate, too, is accountable for any last income taxes and, if applicable, federal estate taxes.
Step 6: Distribute Assets
When the debts are paid and the court gives the go-ahead, the personal representative hands out what’s left based on the departed person’s written instructions, also called a will. If there is no will, Michigan has laws that tell the representative how to divide the remaining assets.
CF Legal in Michigan Can Help You with Planning Your Estate
The probate process in Michigan makes certain that a deceased person’s assets are distributed in an orderly manner to creditors and beneficiaries. Although probate can seem overwhelming, it is a lot simpler if you understand the individual steps. People who are involved with an estate should consider hiring a lawyer to ensure that they comply with all Michigan laws and that they probate the estate in a timely fashion.