Estate Probation

Most assets are reviewed through probate administration following a person’s death, to determine inheritors.

When someone dies, it kicks into motion a number of legal processes. Except in certain cases, the transferring of assets through a court proceeding is one of these.

The short answer? Yes. Probate, at its most basic definition, is the process of authenticating a will before the deceased person’s assets are transferred to loved ones.  

Probate laws are complicated

However, there are several exceptions. Some assets and special situations that don’t require estate probation in Michigan include:

• Small estates: If the entire estate is worth less than $15,000, probate can typically be avoided or may qualify for a simpler legal process.

• Jointly owned property: If your house, car and other large assets are jointly owned, these can pass directly to your spouse or other co-owner.

• Retirement accounts and insurance policies: 401k plans, individual retirement accounts, pension plans and life insurance proceeds are assets that can pass directly to the designated beneficiary.

• Living trusts: These give you the most control over your estate by placing your assets into a legal entity – and avoiding probate court proceedings for these assets. However, they are typically more expensive to create and manage.

The Probate Process

• Submitting the will: If the deceased left a will or other estate plan, this is submitted to the probate court. If not, the estate is known as “intestate,” and the process is altered slightly throughout.

• Appointing the personal representative: This is the executor, the person named in the will who takes charge of the estate throughout all remaining steps, and who must keep careful records. If there is no will, then the court will choose the personal representative, which is typically a spouse or other family member.

• Collect the assets: If there’s a will, this process can be streamlined. If not, some research may be necessary. Certain assets may also need to be appraised.

• Collect any debts owed to the deceased: This may include any remaining paychecks or other benefits, or other outstanding debts owed to the deceased.

• Pay all taxes and debts: Once the value of the estate is established, the personal representative will use the estate’s assets to pay any remaining taxes owed as well as any other debts.

• Distributing remaining assets: Once all taxes and creditor claims have been settled, the personal representative distributes the remaining assets to any beneficiaries named in the will. If there was no will, then the probate court uses a special process to determine who receives the remaining assets.  

Do you need a probate attorney?

Michigan does not require that you hire an attorney for probate, and some people choose to manage this process on their own. However, especially in cases that have added complexity (for example, when there is no estate plan or there are disputes involved), it’s best to consult a probate attorney.