Probate is required in Michigan when the assets are solely owned. For example if someone passes away and they are the only owner on the property title of their home, then the home would need to pass through probate.
Although there is no specific deadline in Michigan to probate an estate, this does not mean that you should not act quickly to complete the process. Acting promptly avoids potential complications and helps ensure smooth completion of the Michigan probate process.
In Michigan, estates valued at less than $24,000 (as of 2021) may qualify for a simplified, smaller estate process. Estates above this value generally require formal probate proceedings. This threshold can change, so it's advisable to consult current legal standards or an attorney for the latest information.
First and foremost, there are a number of asset types that typically do not pass through probate. This includes life insurance policies, bank accounts, and investment or retirement accounts that require you to name a beneficiary.
Personal possessions should not be distributed before probate is completed, as they are part of the estate that must be inventoried and appraised. Distributing items prematurely could lead to legal disputes, especially if they are intended for specific beneficiaries.
In Michigan, you can make a living trust to avoid probate for virtually any asset you own—real estate, bank accounts, vehicles, and so on. You need to create a trust document (similar to a will), naming someone to take over as trustee after your death (called a "successor trustee").
State laws typically govern the specific timeframe for keeping an estate open after death, but the average is about two years. The duration an estate remains open depends on how fast it goes through the probate process, how quickly the executor can fulfill their responsibilities, and the complexity of the estate.
Failing to file a will within the time limit mandated by the state can have serious consequences. A person who fails to deposit the will with the probate court can be sued by anyone who was financially hurt by their failure to file. That persona can also be held in contempt of court for failing to file the will.
If the house is included in the probating of an estate, you may not be able to take anything out of it until the probate process is complete. The personal representative or executor of the estate must take inventory of all the assets, including the contents of the house.
Technically, no, you do not have to file probate when someone passes away. There are no laws that require an Executor or Administrator of an estate to file probate documents with the court.
Personal property.
Household items go through probate, along with clothing, jewelry, and collections. The inventory should include the decedent's personal belongings that remain after death.
Non-Probate Assets
If the deceased designated a beneficiary to receive an asset upon the deceased's death, it is known as a non-probate asset. It may not require any type of estate administration or court filings. These assets pay directly to the named beneficiary and are not transferred under the deceased's will.
Yes, But it's Time to Start Making Other Arrangements
However, if one beneficiary lives in the property to the exclusion of others who also inherit the property, litigation may result between them. In California, any property owned by an individual is subject to probate, including real estate.
Although most property is required to go through probate, there are certain cases where probate isn't necessary. Examples of assets that don't need to go through this process include: Assets that are held within a trust (i.e Revocable Living Trust)
Estate OVER $24,000: If a Wayne County resident has died leaving property in their name only and the property is over $24,000, the closest relative or person named in the will may file a petition to have the estate probated.
The average executor fee in Michigan is 2% to 4% of the gross estate value but can vary depending on the individual's experience and level of responsibility.
Establish a living trust: This is a common way for people with high-value estates to avoid probate. With a living trust, the person writing the trust decides which assets to put into the trust and who will act as trustee.
The services of a probate attorney are considered to be a benefit to the estate. That means that they are generally payable from estate assets, not out of the personal representative's pocket. Just because an attorney bills an estate doesn't mean the entire bill will be chargeable to the estate, however.
If your primary home constitutes most of your net worth, the Lady Bird deed cost will be much less than the cost of having a revocable trust created. If you have a significant amount of property of any type in addition to your primary home, a revocable trust may be a better way to go.
Your estate consists of all property and personal belongings you own or are entitled to possess at the time of your death. This includes real estate, personal property, cash, savings and checking accounts, stocks, bonds, automobiles, jewelry, etc.
Any assets that are titled in the decedent's sole name, not jointly owned, not payable-on-death, don't have any beneficiary designations, or are left out of a Living Trust are subject to probate. Such assets can include: Bank or investment accounts. Stocks and bonds.
The following are some of the most common assets with beneficiary designations, and therefore, such assets should not be included in your will: Retirement accounts, IRAs, 401(k)s, and pensions. Life insurance or annuity proceeds. Payable-on-death bank accounts.