What If the Gift You Leave in Your Will No Longer Exists?

Imagine leaving your vintage car to a loved one in your will—only to sell it years before your passing. What happens to that gift?

This scenario is known as ademption. It occurs when a specifically gifted asset no longer exists at the time of your death. In most cases, if the item is gone, the gift fails and the beneficiary receives nothing. However, there are exceptions depending on how the gift was described and whether it still exists in some form.

Learn more about understanding lapse and ademption in estate planning here.

If your assets change frequently, your estate plan should too. A qualified estate attorney in Ann Arbor can help you update your will to reflect your current wishes. Reach out today for expert support in keeping your legacy intact.

What Happens if a Beneficiary Passes Away Before You Do?

When planning your will, it’s easy to assume that everything will go exactly as written. But life is unpredictable—and sometimes, a named beneficiary may pass away before the will-maker does. This is what’s known as a lapse in estate law.

A lapsed gift typically fails unless an alternate beneficiary is named in the will. However, under Michigan’s Section 46, if the deceased beneficiary was a sibling or direct descendant, their own descendants might still be entitled to the gift.

Learn more about understanding lapse and ademption in estate planning here.

To ensure your wishes are carried out clearly and without confusion, it's essential to review your estate plan regularly and include contingency plans. Questions about your current will? Contact our estate attorneys in Ann Arbor at (734) 665-4441 for personalized guidance.

The Basics of Trust Taxation in Michigan

Understanding trust taxation can help ensure proper compliance and avoid unnecessary penalties. While a grantor is alive, a revocable living trust does not require a separate tax return; the IRS taxes the trust's income as part of the grantor’s personal return. However, once the grantor passes, the trust retains its assets, and tax implications shift. At that point, the estate executor must file the grantor’s final tax return and may need to obtain an Employer Identification Number (EIN) for the trust.

For those managing trusts, special circumstances—such as mental incapacity of the grantor—can further complicate tax obligations. Consulting with a knowledgeable trust attorney can simplify the process and ensure compliance with Michigan tax laws.

 

Learn more about filing a Michigan Fiduciary Income Tax Return here.

 

Don’t Let Trust Taxation Overwhelm You

 

If you have questions about an existing trust, consult a trust attorney in Ann Arbor who can provide tailored legal advice. We’re here to help you navigate trust taxation and estate planning. For personalized guidance, call us at (734) 665-4441 or submit a contact form.

Understanding Michigan Fiduciary Income Tax Returns

When managing a trust or estate in Michigan, understanding fiduciary income tax obligations is essential. The IRS mandates that trusts earning more than $600 annually must file Form 1041, the fiduciary income tax return. In Michigan, trustees or personal representatives must also submit Form MI-1041, even if no tax is owed.

However, some trusts are exempt, including tax-exempt trusts, common trust funds, and certain grantor trusts. Fiduciaries need to be cognizant of filing deadlines.  

 

Learn more about filing a Michigan Fiduciary Income Tax Return here.

 

Don’t Let Trust Taxation Overwhelm You

 

If you have questions about an existing trust, consult a trust attorney in Ann Arbor who can provide tailored legal advice. We’re here to help you navigate trust taxation and estate planning. For personalized guidance, call us at (734) 665-4441 or submit a contact form.

Understanding Michigan’s Probate Inventory Fees

If you’re handling the administration of a decedent’s estate in Michigan, understanding inventory fees is crucial.

Under MCL 600.871(1), probate courts are required to assess an inventory fee based on the estate's value as of the decedent’s date of death. The good news? For decedents with a date of death on or after March 28, 2013, certain deductions for real estate liens may apply.

 

Here’s a breakdown of the fees:

• Estates under $1,000: $5.00 plus 1% of the amount over $500.
• Estates between $1,000 and $3,000: $25.00.
• Estates $3,000 and above: Fees scale incrementally, based on the estate’s value.

 

Need help? Consult with a probate lawyer in Ann Arbor to ensure compliance and ease the process. Learn more and calculate your fees here..

Simplify Probate Fees with the Michigan Inventory Fee Calculator

Navigating probate court can feel overwhelming, but calculating inventory fees shouldn’t add to the stress. That’s why the Michigan Inventory Fee Calculator is here to help.

With this simple tool, you can quickly determine the probate court inventory fee for a decedent’s estate in Michigan. All you need is the total inventory value from your completed Petition and Order for Assignment or Inventory.

 

Why It’s Important

Michigan law, under MCL 600.871(1), requires the probate court to charge an inventory fee as part of estate administration. This fee varies based on the estate's value and must be paid before the estate can be closed.

 

Ready to calculate your fees? Follow this link to the Inventory Fee Calculator.

 

Need Legal Advice?

 

While it's possible to handle probate matters on your own, it's worthwhile to consult with a probate lawyer in Ann Arbor first. Probate proceedings can be complex, and a knowledgeable attorney can help you understand your rights and protect your interests.   

Is a Ladybird Deed the Right Choice for You?

Probate avoidance sounds appealing, and the Ladybird Deed seems like an easy way to achieve it. Before you jump on this bandwagon, consider the potential pitfalls.

This type of deed can create unexpected complications, especially for families with multiple children. Co-ownership can lead to disagreements, disputes, and potentially expensive legal battles.

At Pear Sperling Eggan & Daniels, P.C., we understand the importance of thoughtful estate planning. We can help you explore all your options, including the Ladybird Deed, and guide you towards the best solution for your unique family circumstances.

Don't let a seemingly simple solution create unintended consequences. Contact us today for a consultation and ensure a smooth and harmonious transition of your assets to the next generation.

Learn more about the unintended consequences of DIY Ladybird deeds here.

Contact an Estate Planning Attorney in Ann Arbor to Help You!

Regardless of your stage in life, consult an estate planning attorney in Ann Arbor to create your estate plan with a will and a trust. With the help of an experienced estate planning attorney at Pear Sperling Eggan & Daniels, P.C, you can rest assured that your assets will be easily located, managed, and passed to your loved ones.