Many times, clients will contact our office saying they need a simple will to handle their estate. While a will may cover many of their basic needs, I always like to discuss the Michigan probate process to help guide them in making the best choice for their situations. More times than none, the client usually ends up deciding to create a living trust instead of a will following the consultation.
A will is an important part of your estate plan. The will is where parents of minor children select who will be the guardian/conservator for their children. When it comes to your property, however, a will does not offer certain protections that a trust provides.
One of the most important issues to keep in mind is the will does not prevent your estate from going through probate, while a properly funded trust does. A will allows you to choose who will handle your estate when you die, but any assets that are in your name at the time of your death will need to be processed by probate before they can be distributed. The probate process lasts at minimum six months, and it can be costly. Not only are filing fees required, but legal fees are usually incurred. The probate court will assess an inventory fee that must be paid prior to the case being closed. This fee is approximately three to five percent of the total amount listed on the inventory sheet that is filed, which can be hundreds or even thousands of dollars, depending on the size of the probate estate. To avoid this hassle and cost, the living trust may be the best route for the client. While the costs of preparing the trust are somewhat higher than a will, this amount is far less than what would be charged by probate court later.
Additionally, when clients have minor children or children who are young adults, they may want to structure when their children receive their shares of the estate. With a will, children receive their shares upon turning 18 years old. However, a trust allows clients to be more creative in how they distribute the estate. They can divide it into percentages based on the child’s age. They can also limit how the money is spent or even give the trustee discretion, in the event funds need to be distributed sooner.
A trust is unique in that this legal document goes into effect while the client is alive. A will goes into effect upon the testator’s death. Clients are usually the initial trustees in their trusts, meaning they handle their own affairs, but in the event of incapacity or death, then the successor trustee steps in and handles financial affairs for the client. This gives the client an extra layer of protection, as well as comfort. Irrevocable trusts are often used as tools to protect the client’s assets in the event of illness and the need to go into nursing care or assisted living.
In the event the client does not want to write a trust, other options are available to protect the client’s assets from probate. 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.
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!