Michigan Estate Planning Tools of The Trade

In Michigan estate planning, there are certain tools we use to help our clients achieve their Michigan estate planning goals.  Keep in mind though, estate planning is not just about the documents or tools, it is about how you use them.  I’ve blogged about how every estate planning document is not the same.  Anyone can make the mistake of using a legalzoom.com, Suze Orman Trust kit, or Quicken Willmaker, for their estate planning documents.  I have and many others have talked about how these cheap alternatives often do more harm then good.  With that said, my goal for this post is to educate you on the tools and documents that we, Michigan estate planning lawyers, use in helping our clients achieve their legal and estate planning goals.

The first tool/document that is important is the Michigan revocable living trust.  This document achieves our client’s goals of avoiding probate and exerting control over their assets.  Additionally with the revocable living trust there is a level of incapacity planning not found in the last will and testament.

Now remember, not every revocable living trust is created equally.  Our Bloomfield Hills Law Office reviews quite a few estate plans and revocable living trust.   Unfortunately, we review quite a few poorly done revocable trusts.  We’ve seen poorly drafted plans by both attorneys as wells as the do-it-yourselfers using legalzoom or Quicken willmaker.  Our advice, seek out Michigan estate planning attorneys who focus and specialize in this complicated area of law.

The second tool of the Michigan estate planning attorney is the will or last will and testament.  Wills can come in two forms, either a normal will where the will is the focal point of the estate plan or a will can be in the form of a “pour-over will” where the will acts as a back up to the revocable living trust.  A key thing to remember is the will does not avoid probate.  People make this mistake all the time, that is, they think a will avoids Michigan probate.  A will is your ticket to the Michigan probate system.  The will gives instructions to the Michigan probate judge on how to distribute your assets.  A revocable living trust that is properly funded avoids probate, not a last will and testament.

The next key tool in the Michigan Will and Trust attorney‘s tool box is the financial power of attorney.  There are two types, one that is effective immediately or one that is effective upon disability.  Disability can be determined by two licensed physicians, by a disability panel, or by other means.  This document allows another to handle the financial affairs for another.  It is important to remember that not every Michigan financial power of attorney is created equally.  You can buy a financial power of attorney at an office supply store fro about $10.  This 1-3 page document isn’t worth the paper it’s printed on.  Compare that to the type of documents are office puts together taking into account the goals, desires, and family situation of our clients.

Next on the list of Michigan estate planning documents is the Michigan patient advocate designation.  This is your health care power of attorney.  The document that appoints someone to make medical decisions on your behalf.  Included in your health care directives should be a HIPAA authorization form, along with living will style language in your patient advocate designation

Any questions?  Drop me a line or contact your Michigan estate planning attorney.

-Christopher J. Berry, Esq.
Michigan Estate Planning Lawyer