Why Your College-Bound Child Needs Powers of Attorney

Is your child heading off to college this fall? This exciting chapter brings new independence and responsibility—but it also means you, as a parent, no longer have the legal authority to make decisions on their behalf. Once your child turns 18, they are legally in charge of their medical and financial matters—even if they still rely on your guidance.

That’s where Powers of Attorney (POAs) come in. These legal documents allow your child to designate someone they trust—often a parent—to make medical or financial decisions if they’re unable to do so.

A Medical Power of Attorney ensures that, in the event of a health emergency, you’ll be able to step in and make decisions about their care. A Financial Power of Attorney lets you manage banking, bills, or resolve landlord disputes if your child needs help.

It’s a simple but powerful way to offer peace of mind—for you and your child.

Learn more about how Power of Attorneys can safeguard your child’s well-being here.

🗓️ Before move-in day arrives, contact our estate planning attorneys to schedule a consultation. We’ll help you get the right legal protections in place so your child is ready for anything.

📞 Call (734) 665-4441 or  contact us online.

Michigan Legislation Could Change How Contractors Get Paid

Contractors and subcontractors in Michigan should keep a close eye on House Bill 4837, introduced in June 2023. If passed, this “prompt payment” legislation would invalidate “pay if paid” clauses in private construction contracts and impose penalties for payments wrongfully withheld—including 12% annual interest on overdue amounts.

Michigan has a prompt payment law for public projects but no such protections for private construction work. That could soon change. The proposed bill reflects growing concern that conditional payment clauses unfairly shift risks of nonpayment on construction projects.

The bill is still pending in committee, but its passage would significantly reshape how construction contracts are written and enforced in Michigan.

Are your contracts prepared for upcoming legal changes? Reach out to the Ann Arbor construction lawyers at Pear Sperling Eggan & Daniels, P.C. to ensure your payment provisions are both fair and compliant.

“Pay if Paid” Clauses in Michigan – Are They Enforceable?

In Michigan’s private construction sector, “pay if paid” clauses are becoming increasingly common. These provisions state that a subcontractor will only be paid after the general contractor receives payment from the project owner. While generally permissible under Michigan law, their enforceability depends heavily on how clearly the clause is written.

In Berkel & Company Contractors v Christman Co, the Michigan Court of Appeals upheld a “pay if paid” clause, emphasizing the importance of language that makes the general contractor’s receipt of payment a clear condition precedent. If that condition is not satisfied, the subcontractor cannot claim breach of contract for nonpayment.

However, limitations exist. A party cannot rely on a condition precedent if it caused or made impossible its fulfillment. In other words, if the delay or nonpayment is unreasonable or due to interference, the clause may not protect the general contractor from liability.

Want to avoid disputes over payment timing in your construction contracts? Make sure your agreement contains clear, enforceable language—and consider a legal review before signing. Contact the Ann Arbor construction lawyers at Pear Sperling Eggan & Daniels, P.C. for guidance.

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.