Do I Need an Estate Planning Attorney in Michigan?
A lot of people sit back on estate planning because either they don’t want to confront what’s going to happen to their assets if they pass away or they don’t feel it’s necessary.
The problem is that when something goes wrong, there’s no option to turn back time. Hence, family members or inheritors are locked out of their inheritance until the probate court decides the distribution.
So do you need an estate planning attorney in Michigan? Yes, in most cases you do because legal documents are an attorney’s field of work. They know legal terms like the back of their hands and can prevent any future problems that may arise if you choose a DIY will drafting service.
But for those of you who are new, it’s best to start by understanding what is estate planning rather than jumping to more complicated legal material in this guide.
In Michigan, fiduciary is not just a title. It is a legal standard, and it comes with serious obligations that courts take seriously.
What is Estate Planning?
Estate planning is the process of determining, right now, what happens to your assets, properties, finances and your kids if you become incapacitated or die. And making a Will is not the only thing that falls into estate planning.
A comprehensive estate plan includes who will be responsible for your financial matters if you are unable to make them yourself, who will make your medical decisions, how your assets will be transferred to your family, and whether your family will have to go through months of probate court or avoid it altogether.
If you don’t have a plan, Michigan law does it for you. And the law is not concerned with your family situation. It’s not aware that you’re estranged from a sibling or that you’d prefer your assets be distributed to your children rather than someone you don’t know.
Should I Hire an Estate Planning Attorney in Michigan?
This is, in fact, the actual question. There are online resources, and they’re not nearly as expensive as an attorney. So why not simply use one of those?
The truthful answer is. In very simple circumstances, a general online will may be legally acceptable. A self-prepared document may not pass the test in court if you are young, single, own virtually nothing and do not have any dependents.
Do You Actually Need an Attorney or Can You DIY This?
With online DIY tools that assist in creating a template based will , why would you need to hire an estate planning for 2 times the cost? The answer is simple; expertise. While DIY wills might be the answer for a handful of Michigan residents, these templates aren’t fit for everyone.
And that’s because most people don’t have a simple family structure. For instance, if you live in Novi and have dual citizenship or assets in your home country, a simple DIY will won’t manage how assets in your home country would be distributed. Similarly, most government retired employees living on pension need an estate plan to protect their financial future. The most common cases come from our Ann Arbor office.
But that’s not all on why you need an estate planning attorney in Michigan because these are easy cases. The difficult ones are setting up a special needs trust or managing your debt in a way that it doesn’t affect your children’s inheritance.
In Michigan, a single improper clause in your will or trust can lead to dangerous consequences. And in many probate cases in Michigan, we’ve always seen that a will was considered invalid because they were either missing a signature or one of the witnesses of the will were a beneficiary.
To avoid any unforeseen circumstance, you should hire an estate planning attorney because a document that appears to be valid is not the same as a document that performs the functions you want
What Happens If You Die Without a Will in Michigan
This death is referred to as “intestate” in Michigan. If there is no valid will, the state has a fixed formula to determine who receives what under the Estates and Protected Individuals Code (EPIC).
This is a typical scenario:
- If you’re married and have children from that marriage, your spouse and children receive your estate.
- The division is even more complicated if you have young children from a former relationship that you don’t want to be part of your split.
- In the case of an unmarried person without children, assets are distributed to the parents, then to siblings and further to remote relatives.
- If there are no living relatives, your estate goes to the state of Michigan.
None of that considers your wishes! Close friends who were like family to you do not receive anything.
The Situations That Definitely Require an Estate Planning Attorney in Michigan
There are several situations where hiring an estate planning lawyer in Michigan becomes necessary. In some cases it is so simple that a very knowledgeable person could deal with simple documents alone. However, in all but a few instances, it is necessary to have a licensed Michigan estate planning attorney present:
- You have minor children. If both parents are deceased, a judge will choose the guardian for your children if there is no legal document that specifies a guardian.
- You don’t want to be involved in probate. The length of time it takes for probate in Michigan ranges from several months to more than a year. It is public, it is costly and it is stressful for grieving families. If created correctly and properly funded, a revocable living trust can avoid the probate court entirely. The unfunded trust is of no value.
- You have a blended family. The entire estate planning process is a mine field when it comes to second marriages, stepchildren, and ex-spouses. The formula for intestate succession in Michigan was not devised to encompass today’s family structures.
- You have a business or property. The tools that are required to pass property and business ownership in a smooth manner are unique, such as lady bird deeds, buy-sell agreements, and trusts. You need an estate planning attorney on your side to create these documents for you.
- You would like to safeguard a loved one who has special needs. It is important to note that giving assets directly to a Medicaid or SSI recipient may cause the recipient to lose their eligibility for the benefits. They are safeguarded through a well set up special needs trust without disqualifying them from benefits.
- Making plans for long-term care. Proactive planning is key to protecting assets for Medicaid in Michigan. A Michigan Medicaid expert attorney can assist you to maintain your assets and property, and ensure your needs are met when you require care.
Violating any of these duties is not just a moral failure in Michigan. It can result in personal liability, removal from the role, and court ordered repayment of any losses caused to the estate or trust.
What a Michigan Estate Planning Attorney Actually Does
Working with an estate planning attorney isn’t simply paying for documents. You’re paying for someone who knows Michigan Law inside and out, and who’ll be able to see problems you wouldn’t even imagine to search for.
A competent lawyer can create and finalize your will properly to ensure that it will stand ground if challenged. They’ll design a living trust and ensure that it is properly funded, something which is missed by most people. They will draft long-lasting financial and medical powers of attorney, so your family won’t have to submit a court order to have their voice heard on your behalf.
They will also explain to you the beneficiary designations on retirement accounts and life insurance, which pass outside your will entirely and often supersede the will.
Michigan Specific Laws You Must Know
Estate planning in Michigan isn’t just about deciding who gets what after you’re gone. Michigan law gives residents a few planning tools that simply don’t exist in other states, and overlooking them can mean paying for probate, legal fees, or unnecessary complications that could have been avoided.
One of the best examples is the Lady Bird Deed. Michigan is one of only a handful of states that recognizes it. It allows you to keep complete control of your home during your lifetime while transferring it directly to your heirs after your death. No probate. No trust. Despite those benefits, many homeowners have never heard of it.
Michigan also offers a simplified option for certain smaller estates. If the estate qualifies, families may be able to avoid the entire probate process for estates with less than $25,000 in personal property after funeral expenses. It isn’t automatic, though. Eligibility depends on several legal requirements, so it’s worth hiring an estate planning attorney in Michigan before assuming the shortcut applies.
Powers of attorney are another area where Michigan law catches families off guard. The state updated its power of attorney laws in 2012, and documents created before those changes may not provide the protection you expect today. A properly drafted durable power of attorney should reflect the current legal requirements, not an outdated template downloaded years ago.
Medicaid planning follows its own set of rules as well. Michigan enforces a five-year look-back period on asset transfers. If you gave away money or property during that time, those transfers are reviewed when you apply for Medicaid and can affect your eligibility for benefits. By the time long-term care becomes necessary, many planning opportunities have already disappeared, which is why starting early makes such a significant difference.
Estate planning in Michigan isn’t all about the distribution of assets after death. The laws of Michigan offer a number of planning tools that are not available in other states and using them can help you avoid paying probate taxes, legal fees or avoiding the hassle and stress of unplanned complications.
The most obvious one is the Lady Bird Deed. Michigan is one of only a handful of states that recognizes it. It enables you to retain complete control of your home for your lifetime and pass it on directly to your beneficiaries when you die. No probate. No trust. Many homeowners haven’t heard of it, despite its benefits.
There is also a simplified option available in Michigan for a few smaller estates. If the estate qualifies, families may be able to avoid the entire probate process for estates with less than $25,000 in personal property after funeral expenses. It isn’t automatic, though. However, there are some legal criteria that must be met, and it’s recommended to hire an estate planning attorney in Michigan before you take the shortcut.
One place where Michigan’s laws stump families is in powers of attorney. State laws governing power of attorney were revised in 2012, and documents signed prior to the revision may not be effective as they are now. A well drafted durable power of attorney should be written up to meet the present legal needs and not a template obtained years ago.
Medicaid planning has its own rules, too. Michigan has a five-year look-back period for transfers of assets. The transfers of money or property during that period are considered when you apply for Medicaid benefits, and may impact eligibility. With long care needs, it’s often too late to plan, as many planning opportunities have been lost.
What is the Cost of Hiring an Estate Planning Attorney in Michigan?
The cost of an estate plan will vary, depending on the goals you are seeking. Someone who only needs a basic will, a durable power of attorney and a designation of a patient advocate will pay less than a family creating a trust and planning for long-term care.
A simple estate plan can cost between several hundred dollars and a couple thousand dollars depending on your circumstances and the attorney’s legal fees. More comprehensive plans will involve living trusts, real estate transfers, Medicaid planning, or tax planning and are therefore more expensive and take more work.
That might appear to be a large cost if you consider it individually. But when you pair it up with probate litigation, court fees, or a family contest over the estate’s meaning, it can be one of the cheapest legal choices that you will ever make. A properly drafted estate plan is more than just a piece of paper. It’s a safeguard against many higher expenses down the road.
The Right Time to Make or Revise Your Estate Plan
While there is no ideal time to begin estate planning, there are certainly times where waiting can pose a danger.
If your medical condition deteriorates or worsens due to a new medical diagnosis, it will be difficult to sign important documents if you are not legally competent to do so. Life changes like marriage, divorce, having a child or a loved one pass away can also make an old estate plan ineffective.
The most obvious red flag is having no plan at all. Each day that passes without an estate plan in Michigan is another day your family may be forced to deal with Michigan’s default laws concerning probate when your wishes are ignored.
Patient Advocate.
Named in your Patient Advocate Designation, this person makes healthcare decisions on your behalf if you cannot make them yourself. They are also bound by fiduciary standards and must act according to your known wishes and best interests.
Each of these roles carries its own specific obligations, but all of them share the same foundational requirement: put the person you serve first, always
So, Do You Need to Hire an Estate Planning Attorney in Michigan?
Most people will say yes. You don’t need to be wealthy to benefit from estate planning. An estate plan gives you control over your assets and finances, if you want to be able to provide for your children.
At The People’s Firm PLLC we believe estate planning should be down-to-earth, clear and targeted to your family’s needs. We guide clients throughout Michigan in drafting plans that prioritize what is important to them while avoiding legalese and suggesting documents that they might not need.
We can help you develop your first estate plan or update your current estate plan if it no longer matches your life circumstances.
