Question 1

What is Probate, and How Does It Work?

Accepted Answer

Probate is the legal procedure for settling the estate of a deceased individual, encompassing tasks such as asset collection, debt settlement, and distribution of remaining assets to heirs or beneficiaries. In Michigan, probate is a court-supervised process that may become necessary upon a person's passing. The probate process can be complex, time-consuming, and emotionally taxing.

The probate process in Michigan follows these steps:

Filing a petition with the court to initiate probate.
Sending out notices to heirs and creditors.
The executor takes stock of the estate's assets and creates a comprehensive list.
The executor's responsibilities extend to filing any tax returns, clearing outstanding taxes, and settling debts.
Once all financial obligations are met, the executor distributes the remaining assets among the rightful recipients

Seeking the assistance of an experienced probate and estate administration lawyer can greatly streamline and optimize the entire process, even if formal proceedings are unnecessary. This ensures efficiency and cost-effectiveness throughout the probate proceedings.

Question 2

What Are My Duties As a Trustee?

Accepted Answer

As per the Michigan Trust Code, when a person accepts a trusteeship, they are required to manage the trust diligently and in good faith, adhering to its terms and objectives for the ultimate benefit of the trust beneficiaries. The trustee is also obligated to operate the trust in accordance with the law. Moreover, the trustee has a responsibility to keep the qualified trust beneficiaries adequately informed about the trust's administration, providing them with essential information necessary to safeguard their interests. At Creighton, McLean & Shea, PLC, we can assist you in all trust administration duties. Call us today to discuss the details of your case.

Question 3

Does an Estate Have to Go Through Probate in Michigan?

Accepted Answer

In Michigan, state statute mandates probate for the majority of estates. However, certain exceptions exist where the probate process can be largely avoided. For instance, if an estate's value is less than $24,000 after covering funeral expenses and does not include any real estate, it can largely bypass probate proceedings. Michigan also offers a simplified version of probate for estates that meet specific criteria, where the estate's value must be less than $15,000. If you aren’t sure, call the attorneys at Creighton, McLean, and Shea for thorough, expert counsel on these matters.

Question 4

What is the Difference between a Trustee & an Executor?

Accepted Answer

In Michigan, a key distinction between a trustee and an executor lies in their appointment process. A trustee is designated in a trust document, such as a living trust, to oversee the estate of the deceased individual. On the other hand, an executor, also known as a personal representative, is specifically named in a last will and testament.

Another significant difference between an executor and a trustee relates to the settlement process for the estate. Wills and trusts function differently, resulting in slightly distinct procedures that executors and trustees must follow when settling an estate.

The primary responsibility of an executor is to fulfill the provisions outlined in the will. This involves initiating probate, gathering assets, settling debts, and distributing assets to the beneficiaries named in the will. In contrast, a trustee's role centers on managing the assets held within the trust, exercising prudent investment strategies and distributing assets to beneficiaries in accordance with the trust agreement's terms.

Question 5

How Long Does the Probate Take in Michigan?

Accepted Answer

Probate is the lawful procedure for resolving the affairs of a deceased individual's estate. In the state of Michigan, probate can occur through either a formal or informal process, contingent upon the estate's complexity and the presence of any disputes. Typically, probate in Michigan lasts a minimum of 5 months, but it may extend further if the estate has federal estate tax obligations or if creditors submit claims.

The probate process commences with the filing of a petition with the county Probate Court. Generally, probate proceedings take around 6 months to a year to conclude. However, in cases where disputes are present, the process can be significantly prolonged.

Question 6

What Assets are Subject to Probate in Michigan?

Accepted Answer

In Michigan, assets that are typically subject to probate proceedings encompass the following:

Solely owned and jointly owned property
Business interests
Life insurance values
Retirement accounts
Assets held in trusts, including certain retirement accounts

Conversely, there are assets classified as non-probate assets, which bypass probate and directly pass to the named beneficiaries. These non-probate assets include:

IRAs (Individual Retirement Accounts)
401(k) plans
Life insurance policies
Annuities
Bank accounts owned jointly with rights of survivorship, ensuring a surviving co-owner receives the assets directly.

Furthermore, if the deceased had an interest in a business, the business's governing documents may facilitate the transfer of their interest without involving the court. Additionally, any assets held within a trust by the deceased are likely to avoid probate court involvement.

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