New Michigan Laws to the Rescue

Michigan has enacted new laws to streamline the probate process and make it easier to transfer assets outside of probate. These laws include:

• Increased Small Estate Affidavit Threshold: The amount of assets that can be transferred to heirs without formal probate has increased. This means that many smaller estates can now be settled more quickly and affordably.
• Simplified Vehicle Transfer: Michigan has simplified the process of transferring vehicles to heirs, making it easier to avoid probate for vehicle-related assets.

Protecting Your Legacy

To minimize the risk of probate and ensure a smooth estate settlement, consider these tips:

• Regularly Review Your Estate Plan: Schedule periodic reviews with your attorney to assess your estate plan and make necessary adjustments.
• Keep Accurate Records: Maintain detailed records of your assets, liabilities, and beneficiary designations.
• Work with an Experienced Attorney: An experienced estate planning attorney can help you create a comprehensive estate plan that minimizes the risk of probate and protects your legacy.

By understanding these common pitfalls and taking advantage of the new Michigan laws, you can help ensure a smoother and more efficient estate settlement process for your loved ones.

Learn more about the common pitfalls of probate here and how you can protect your assets here.

 

Get Started Today: Schedule Your Consultation

 

If you’re interested in learning more about estate planning, please contact an estate planning attorney in Ann Arbor at 734-665-4441.

Avoiding Probate Pitfalls: Common Mistakes and New Michigan Laws

Due to the complexities of your financial affairs, clients often fail to get all their assets into trust. Probate is required after they pass away. We call this “oops” because their intent is to avoid probate but human error makes it necessary. For example, we’ve experienced the following “oops” situations: 

 

1.     A client opened an investment account for $15,000 in her name alone after her trust was set up. She forgot to title it into her trust. Under Michigan law, a short probate proceeding (2-page application with a court order) was opened to distribute this account to the heir because the value of the account was under $25,000.

2.     A successor trustee found a $40,000 bank account in his father’s name only while administering the trust. The father forgot to title the bank account into his trust, so we had to open up a full probate estate and spend over $1,000 in attorney fees because the value of the bank account was over $25,000.

3.    Before covid a deceased mother forgot to name her children on an annuity. She remembered to do so on the other 6 annuities but forgot on the 7^th one. We had to open a full probate proceeding in Wayne County Probate Court to distribute this $40,000 annuity to her children because, again, the value of the annuity was over $25,000.

 

As you can see, an “oops” situations happen, so it’s important to double check the titling of your assets throughout your entire financial life. 

 

In the meantime, under a new Michigan law, the scenarios in #2 and #3 above would be easier. Learn more about the common pitfalls of probate here and how you can protect your assets here.

 

Get Started Today: Schedule Your Consultation

 

If you’re interested in learning more about estate planning, please contact an estate planning attorney in Ann Arbor at 734-665-4441.