When you lose a loved one, dealing with their estate can feel overwhelming during an already difficult time. Michigan’s probate process involves several steps to distribute assets properly.
The process typically begins by filing a petition with the probate court in the county where the deceased person lived, along with the death certificate and original will if one exists.
Probate can be challenging, expensive and complicated, so understanding how it works is vital. Here’s what you need to know about probate and how to handle potential complications confidently.
The basics of Michigan’s probate process
Probate is the legal process that takes place after someone dies, regardless of whether a valid will exists. In Michigan, the process varies depending on the estate’s size and complexity. In general, small estates under $22,000 qualify for an expedited process, called summary administration.
Not all assets must go through probate. Property held in trusts, jointly owned real estate with right of survivorship, life insurance policies with designated beneficiaries and certain bank accounts with payable-on-death designations bypass the process.
Assets that typically go through probate include:
- Real estate titled solely in the deceased person’s name
- Bank accounts with no co-owner and no beneficiary designation
- Real estate owned as tenants in common (rather than joint tenancy)
- Stocks and bonds in the deceased’s name only
- Tangible personal possessions, such as clothing, jewelry, furniture
- Vehicles registered only in the deceased’s name
These assets require probate because they are owned individually by the deceased, and there is no automatic transfer mechanism in place.
The four main steps of probate
Regardless of the size of an estate, families understandably focus on the emotional toll of losing a loved one. However, grief is often compounded when they find themselves unprepared for an unfamiliar legal process, especially if the deceased left no will or clear instructions. Michigan’s probate process follows four essential steps:
First, the court appoints a personal representative (executor) to manage the estate. If there’s a will, it typically names this person. Without a will, the court appoints someone according to state law, usually starting with immediate family members.
Second, the personal representative gathers all the deceased’s assets. This includes identifying bank accounts, real estate, vehicles, investments and personal belongings solely owned by the deceased.
The third step involves paying all legitimate debts and expenses, including funeral costs, outstanding bills, creditor claims and taxes. The personal representative must also handle administrative expenses related to managing the estate.
Lastly, after paying all debts and expenses, the estate distributes the remaining assets. With a valid will, distribution follows the deceased’s instructions. Without a will, Michigan’s intestacy laws determine who receives what, based on family relationships.
When probate becomes more complicated
Probate doesn’t always proceed smoothly, leading to estate litigation. Challenges can come from relatives, creditors or others. Common disputes involving family members include:
- Concerns about the validity of estate documents due to suspected dementia, undue influence or fraud
- Questions about the personal representative’s actions or competence
- Disagreements over asset distribution among beneficiaries
- Potential breaches of fiduciary duty
- Allegations of probate fraud
When issues arise, formal litigation may be necessary. This process typically involves gathering evidence, attempting mediation and potentially proceeding to court if necessary.
Avoiding probate through planning
Probate can be a lengthy and costly process, especially if litigation ensues. Families can avoid complications through comprehensive estate planning. If you or your loved one does not have a will or trust in place, consider these options:
- Create a revocable living trust containing major assets
- Use joint ownership with right of survivorship for real estate
- Designate beneficiaries on life insurance policies and retirement accounts
- Set up bank accounts with payable-on-death provisions
These actions simplify the process for your heirs during their time of grief, potentially reducing stress and costs while ensuring that others follow your wishes.
Turn to skilled probate attorneys for guidance
Michigan’s probate process requires understanding complex legal requirements during an emotionally challenging time. Kuiper Kraemer PC has guided individuals and families through probate for over 20 years, providing compassionate support while protecting your interests.
You can contact our firm by calling 616-537-1016 or using our online form to schedule a consultation about your probate or estate planning needs.