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 probate process 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. Anything co-owned with another individual or an asset that has a beneficiary tied to it does not get listed on the inventory form. 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. For these reasons, most clients seek to avoid probate.
There are several ways for an individual to avoid the probate process. One of the most popular ways to avoid probate is through a revocable living trust. A revocable living trust is especially common when someone has minor children and they wish to structure at what age their children receive their estate. Any properties which a person owns, and all their assets, would go into the revocable living trust and it would go into effect while the person is alive.
Other alternatives ways to avoid probate include a Ladybird Deed, Joint Tenancy or Tenancy by the Entirety, joint bank accounts, and including a beneficiary on assets. All of these options are discussed during that initial meeting between attorney and client.
Every client’s situation is vastly different. While a trust may be the best option for one client, it may not be for another.
Probate may not always be beneficial to avoid, there are a few circumstances which probate may be the best choice. If you are deciding whether or not it is best to avoid probate, it is best to first speak with an estate planning attorney regarding what is right for you.
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!