Probate is the process in which a deceased person’s estate is processed through the legal system. In the state of Michigan, when an individual dies without an estate plan or with a will, that person’s estate will go through probate court in the county where he or she lived at the time of death. During this process, creditors of the deceased are notified of the death and are given the opportunity to file a claim against the estate to have their debts paid.
The first steps in the probate process is determining if the deceased had a will and appointing the personal representative of the estate. If the deceased had a will, the personal representative is normally named there. However, if the deceased died without a will, if there was no personal representative named or the person named declined the role, another person will have to be named as personal representative of the estate. There is an order of priority that Michigan courts will use to determine who to appoint. Most commonly, if no one was named in the will, then a surviving spouse would be appointed as the personal representative. If there is no surviving spouse, then a beneficiary of the deceased is next to be appointed.
Next, all interested parties must be notified of the probate process. This may include several people, including: anyone taking under the will, anyone who takes intestate, a surviving spouse, and creditors.
The probate process usually takes a minimum of six months and can take up to a year to successfully complete. Several court forms must be filed with the probate court to process the person’s estate. The inventory form requires the person responsible for handling the estate to include assets that were in the deceased’s name at the time of his or her death. Probate property typically includes:
- Personal Property – cars, jewelry, furniture,
- Real Property — including homes
- Bank Accounts
- Debts
Non-probate property does not get listed on the inventory form. This includes anything co-owned with another individual or an asset that has a beneficiary tied to it. Non-probate assets do not need to go through probate and can avoid court. This would include:
- Joint property, bank accounts, and cars that are jointly owned or have a beneficiary listed
- Retirement accounts, pension accounts, and life insurance policies with a beneficiary listed
- Real property that is owned jointly with another person
An inventory fee is then calculated from that amount, which is roughly between three to five percent of the total value. This fee must be paid before the case can be closed and the estate distributed. This fee can be a significant sum of money depending on how much is on the inventory form.
After there is an inventory of all probate property, any bills of the estate will need to be paid. Those bills may include funeral costs, unpaid debts, taxes, or medical costs. Finally, once all the debts are paid for and the inventory fee is paid, the remaining assets can be distributed, and the estate can be closed.
At Sullivan Law, we offer estate planning packages at a flat and reasonable fee. We also offer free consultations to discuss what your needs are, what you would like to do, and how that can be best accomplished. Everyone’s needs are different, and your wishes should be clearly listed and understood.
Call us at 248.917.1351 or email at asullivan@sullivanlawonline.com to schedule your free consultation today. We look forward to working with you!