Placing assets into a trust can allow them to pass to your beneficiaries, without having to go through the oversight of the probate courts. "Types of Charitable Trusts. A grantor of a revocable trust can serve as its trustee. Bond is insurance used to protect the heirs in case the personal representative or conservator misuses or steals assets from the estate. You can use our Do-It-Yourself Will tool to prepare a Michigan statutory will. In order for your will to have any impact on distributing assets of your estate, it must first be taken to probate court in the county where the decedent either died or has real estate assets and recognized by the court to be the decedent's last will and testament. Will and trust michigan. When you set up a trust you transfer ownership of your assets into the trust and they are then managed by the trustee. Protect Your Family From Creditors, Divorce, Substance Abuse, Gambling and Estate Taxes. Adults who have disabilities are often beneficiaries of special needs trusts as well. In other words, Daughter will be penalized for having received the inheritance and using it for any purpose she desired. Unlawfully changing an existing trust – In order to modify a trust, there are specific legal processes required by law. A living trust in Michigan can be a valuable estate planning tool that gives you control over your assets and which offers privacy. This helps avoid confusion and delays during the probate process. For example, if trust monies are used to purchase a television for the beneficiary, the trustee must not give money to the beneficiary to make the purchase.
Internal Revenue Service. If so, proper planning is necessary to ensure your business is not left without a leader. The trust document can provide for a successor trustee, for example, upon a grantor-trustee's death or disability, and include instructions for the subsequent management and transfer of the trust assets. Misuse of trust assets – Trusts are generally very difficult to challenge in court. What's the average cost of setting up a Will and Trust? That said, some of the most common types are as follows: Revocable Living Trust or Living Trust. Trust monies must only be used for "supplemental" needs. Our law firm is located in Plymouth, MI and dedicated to serving clients throughout the State. Challenging a Will in Livingston County, Michigan | Will Contest. Protect Your Family, Money, and Property From Probate Court Today! It is sometimes shortened to simply "living trust" or "revocable trust. "
The trust must be: - An entity with its own Federal Identification Number (you cannot use your Social Security Number). You should be aware of other legal arrangements that can facilitate transferring assets directly to your heirs. If you fail to plan, you are creating a huge loss of assets which would have otherwise been available to your loved ones after the passing of the future beneficiary receiving government benefits. Transportation expenses. These arrangements transfer property without the assets going through probate. Please contact an attorney immediately if you have a loved one who receives or is likely to receive government benefits in the future. Trust vs will in wisconsin. Common Reasons For Litigation. The different types of trusts. These trusts can serve the same sort of purposes but operate according to different rules. You can use a trust to manage your assets while you are alive or after you die. The guardian has considerable power over their ward, so this selection must be made carefully. There is no estate tax in Michigan, but federal estate tax applies to estates valued at over $5 million.
It is possible to avoid estate tax with a carefully constructed QTIP trust (also known as an AB or marital trust) which passes assets from a spouse to the surviving spouse. Living trusts and estate taxes in Michigan. This typically applies to spouses or children of the deceased. A revocable trust, as the name suggests, is a type of trust that may be revoked any time. A parent or other relative can set up a trust and name a trustee to dole out assets as needed. Our client's sister was the beneficiary, and as luck would have it, she was awful with money. Wills also enable you to designate a guardian for your children. However, they cannot be modified by the grantor (who set up the trust) at any time until the lifetime of the trust has expired. Even if your assets are limited to a residence, bank accounts, and perhaps an IRA or 401(k) account, you want to be sure that the people you wish to receive them do indeed become their owners and that your plans are executed with the greatest efficiency and least expense possible. The person you appoint as "personal representative" may still need to go to the probate court for authority to distribute some kinds of property. Will vs Trust in Michigan | Rochester Law Center. So, you must be diligent when you're creating this document. Perhaps you don't have a very large estate, but you still want to have control over what you have while providing clear instruction as to where your assets should be distributed in the future. One reason is convenience to the court in the future. For a will to become effective, it must be probated, or approved by a court.
Michigan Trust Lawyer. Changing this list will have no effect on the rest of the will. It is imperative that you create the trust and not leave it to your heirs to do so. Trust vs will in ohio. There are multiple ways to structure marital trusts for tax and probate benefits, and it's important to consult with an attorney to explore all your options. Why is Having a Will Important? Not wanting your children to inherit equally. A QPRT can be useful for reducing estate taxes and offering creditor protection, depending on your circumstances.
First, she can accept the inheritance and use it for any purpose, but if she does, her access to SSI and Medicaid will be restricted for a period of time. Our firm has over 50 years of combined legal experience in the Michigan area, and are ready to help you protect your property and family next. "Intestate Succession Laws By State. You can keep your will in a locked box in your home with your other important papers, such as deeds, car titles, or insurance policies. Reserve Your Free Consultation Today! Our dedicated team will work with you to protect your interests and meet your long-term goals. Parents with Minor Children. The statutory will allows you to distribute your property to certain family members according to a set structure. They can also be used to move assets out of state. A will does not need to be notarized.
Trusts can have a limited term, the duration of the grantor's or another person's lifetime, and can hold assets and distribute them after the grantor's or other person's death. This establishes a clear transition of power over your assets and does so in a much more specific fashion than establishing a financial power of attorney. Additionally, the process can be costly and time-consuming. Using the statutory will again will revoke any earlier wills. Investments – Issues may occur when a trustee is pressured into making high risk investments with assets from the trust or make investments that have little-to-no short term income.
If you are over 60 years old, your local legal aid office may be able to help you. Avoidance of Probate. A living trust and a will are two of the best options for dictating these instructions, but each has their own benefits and limitations. Because the trust is irrevocable, assets placed in the trust are typically owned by the trust, not the person who gifted the asset to the irrevocable trust. During your lifetime, you have the option to amend your will at any time. Musical instruments. That is, monies shall only be used for goods and services not provided for through Supplemental Security Income (SSI) and/or Medicaid.
If you'd ever like to talk about your family's particular concerns, feel free to give us a call to reserve your free consultation at (248) 613-0007. Meanwhile, revocable living trusts are useful insofar as they can avoid probate. Typically, this is a spouse or a trusted sibling. All of your children will inherit equally under the statutory will. We've seen many situations where the Probate process leaves nothing behind for the family. When you execute your will, your witnesses must confirm that you have made the will of your free choice. Most states have laws recognizing the validity of wills that were properly executed in other states. Household furniture. Common examples include special needs trusts, life insurance trusts, and asset protection trusts. You can avoid confusion by making and signing a new will that names your new child. Marital Trusts and Credit Shelter Trusts.
An estate planning attorney can tell you more about irrevocable living trusts.