Michigan Estate Planning Lawyer Blog

With Michigan Estate Planning, there are a few basic things that you need to know.

First, no matter what your net worth is, how much in assets you have, how much debt you have, you need an estate plan. In Michigan, once you turn 18 you are legally an adult. So, even if you're a college age adult who lives at home with your parents, there is a certain level of estate planning that should be done. That is you need, what our office calls, a disability plan. A disability plan plans for your disability or incapacity.  We would put together a Patient Advocate Designation (which is the Michigan equivalent to a health care power of attorney), HIPAA Authorization, and a Financial Power of Attorney that most likely would name your parents as decision makers and agents.

Now that we've established that if you're over the age of 18, you need the disability documents, the next step would be once you have assets (now matter how meager) or children, it is important to plan for your assets and children.  This is done through using Revocable Living Trusts and Last Wills and Testaments.  Whether you opt for a Living Trust based estate plan or a Will based estate plan will depend on your goals.  Remember a Last Will and Testament only gives instructions to the Michigan Probate court on how to administer your estate, it does not avoid probate.

Lastly, it is important to consult a Michigan estate planning attorney in preparing your estate plan.  Proper Michigan estate planning involves more than buying Nolo Willmaker software or reading the latest Suze Orman Trust Kit book.  It involves analyzing your goals and situation and using the estate planning tools we've discussed in the most effective and cost effective way.

Our Bloomfield Hills Probate Lawyer office helps individuals and families with Michigan estate administration issues on a regular basis. One thing that I must remind clients of many times, is that the Michigan probate process is generally, not as quick and easy as you would like it to be.

If you do not have a properly funded trust based estate plan, there is a very good chance that your estate will end up under the jurisdiction of the Michigan probate courts. That may not be a bad thing, but you have to understand that if your estate is in the Oakland County Probate Court system, Macomb County Probate Court system, the Wayne County Probate court system, or any other Michigan Probate Court system, there will certain hurdles and hoops that will have to be jumped through.

In addition to jumping through certain administrative hoops, you have to understand that there are certain statutory requirements that each probate court requires. Even if the Michigan probate matter is an unsupervised, informal probate case. You still need to keep the probate estate open for a at least 5 months. You still have to publish a notice to creditors. You still have to complete the inventory in a timely matter (within 91 days of appointment).

Maybe it is a failure on my part to educate and explain that even with a Michigan probate lawyer handling the administration, I can't wave a magic wand and bypass all the requirements of the Michigan probate court process.

Well, I take that back. I can, its called proper Michigan estate planning. Through proper planning (typically a living trust based Michigan estate plan that is properly funded) you can avoid the probate court completely. A Michigan Will does not avoid probate, no matter how pretty the backing or how long the document. A Michigan Last Will and Testament is your ticket to the probate system.

This isn't to bash the Michigan probate system either. I love the people at the probate register and the staff. But, the public needed to understand that there are certain rules and formalities involved and most of the time those rules and formalities were put in place for a reason.

That said, by working with an experienced Michigan probate lawyer, we can navigate the process to minimize the work, stress, and excess costs to make the process as smooth as possible, but we have to follow the rules and jump through the hoops.

There are quite a few myths regarding Trusts, Wills and Estate Planning. A recent USA Today article address some of these myths. The article interviewed two colleagues from WealthCounsel, which is a national association of estate planning attorneys.

The myths that the article addresses include:

1. Estate planing is only for the rich.
2. If I die without a Will, everything will go to my spouse.
3. I have a Will, my estate wont go through probate.
4. After I create my Last Will and Testament or Living Trust, I'm set.
5. I could be held responsible for a deceased parent's debts.

You can read the article in its entirety here: 5 Myths about wills, and what you should do.

While overall, the article is well written, I do have one large point of contention.  The article suggest that some of the do-it-yourself options are viable, such as Legalzoom, Suze Orman Trust Maker, or Quicken Willmaker.  Read some of my past posts on why these options can be even worse than having no estate plan at all.

With the baby boomers aging, the largest amount of wealth in history is passing from one generation to the next. Unfortunately, people are procrastinating on their estate planning until it's too late. 

Over at the greenbaypressgazette.com, they have an interesting article that discusses how to prioritize the details in estate planning which you can read here:  "Guest column: Tim Cisler Prioritize details in estate planning."

From the point of view of a Michigan estate planning attorney, there are a couple key points that I would like to reinforce from the article.

First, don't underestimate the value of your assets.  Sure the economy is down, that said, your estate could include your residence, your retirement accounts, your savings, and possibly your life insurance.  Add all those pieces up and you may be surprised at the value.  Regardless of the size, you most likely would want to protect those assets from needless expenses, for example the expense of opening a Michigan probate.

The next key point is to keep your beneficiaries designations updated on your assets, including life insurance, retirement accounts, deeds to property.  Just because it made sense at one point to name a family member the beneficiary of the IRA, doesn't mean now or in the future it would make more sense to name the living trust the beneficiary.

Lastly, know the difference between a probate estate and a trust.  People think that just because they have a Michigan Will, they will avoid the Michigan probate system.  Not true, a Michigan Last Will and Testament is your ticket to the Michigan probate system.  If you want to avoid a Michigan Probate, then a living trust would be a better option.

Christopher J. Berry, Esq., A Bloomfield Hills Wills and Living Trust Attorney, is a Partner with The Law Offices of Witzke Berry PLLC, which practices in the areas of Bloomfield Hills  Estate Planning, Bloomfield Hills Medicaid Planning, and Bloomfield Hills Probate Litigation, serving Metro-Detroit and Oakland County, Macomb County, and Wayne County.  We can be reached at 248-971-1700.

Are you curious as to what the essentials of a Last Will and Testament? Well, moneywatch.com has an instructional video on it.
Here is the video:


Great advice, I could not have said it much better myself. 

A Last Will and Testament is a state specific legal document, so it is important to consult an attorney in your state.  So, if you are looking for a Michigan Last Will and Testament, it is important to speak with a Michigan estate planning attorney.

Christopher J. Berry, Esq., An Oakland Estate Planning Attorney, is a Partner with The Law Offices of Witzke Berry PLLC, which practices in the areas of Michigan Wills and Michigan Trusts, Living Wills, and Michigan Probate Litigation, serving Oakland County, Macomb County, and Wayne County.  We can be reached at 248-971-1700.

A question many potential Michigan probate clients have is "how is a Last Will and Testament probated?"

The Michigan probate process is typically a 5-12 month process that begins with filing the appropriate forms with the local probate court. The Michigan probate court you need to file the appropriate forms and Last Will and Testament at depends on where the deceased resided. For example, if the decedent lived in Oakland county, then the Last Will and Testament would be probated at the Oakland County Probate court, located in Pontiac.

Depending on your goals the appropriate forms to open up a probate estate with a Last Will and Testament included the Application or Petition for Probate, Testimony of Interested Parties, Supplemental Testimony, Acceptance of Appointment, Register of Deeds and the Death Certificate of the Deceased. This is just a general starting point. In addition to this paper work, the filing fees and fees for the Letters of Authority must be paid to the court.

Now this only opens up the Michigan probate and starts the process. You now must navigate the Michigan probate process through the local county court, such as the Wayne County Probate Court, the Oakland County Probate Court, or the Macomb County Probate Court.

Christopher J. Berry, Esq., A Bloomfield Hills Probate Litigation Attorney, is a Partner with The Law Offices of Witzke Berry PLLC, which practices in the areas of Michigan Living Trusts, Living Wills, and Michigan Probate Litigation.  We can be reached at 248-971-1700.

The Estate of Steve McNair continues to make headlines due to his lack of property, make that any estate planning. According to WBIR.com, one of Steve McNair's sons prior to his marriage is preparing to make a claim to his inheritance. According to the article, this could set the stage for drawn out probate litigation.  You can read the article here: "Steve McNair's estate left in limbo."

The fact that neither mother of his sons previous to his marriage were married to Steve McNair will have no bearing on the sons potential inheritance, according to the article.

In the article, an attorney who worked on the Conway Twitty estate (which was a mess itself) is quoted as saying "This is why you have to leave a will so your wishes and desires are carried out."

Christopher J. Berry, Esq., A Bloomfield Hills Probate Attorney, is a Partner with The Law Offices of Witzke Berry PLLC, which practices in the areas of Estate Planning, Living Trusts and Living Wills, and Michigan Probate Litigation.

Just like the Michigan probate court process, Steve McNair's wife has published the required Notice to Creditors in the local paper, according to the Nasvhille News. 

Complicating matters, because Steve McNair had not done any estate planning, Steve McNair's wife will have to open two probate estates.  One in Tennesee and one in Mississippit because he had assets in both states.  Now if Steve McNair had a properly funded living trust placing the assets in the trust, probate in both states most likely would have been avoided.  Instead Steve McNair's wife must go through two probate estate processes.

According to the article, once the Notice to Creditors is filed, Steve McNair's wife will have 30 days to file the Inventory in Mississippi and 60 days to file in the inventory in Tennessee.  This differs from the Michigan probate process.

When you open a Michigan probate, you have 91 days to file the Inventory.  The Notice to Creditors filing begins the clock for creditors to attach to the estate.  Once the Notice to Creditors filing happens there is a 4 month window for creditors.

Christopher J. Berry, Esq., A Oakland County Probate Litigation Lawyer, is a Partner with The Law Offices of Witzke Berry PLLC, which practices in the areas of Estate Planning, Michigan Estate Administration, and Michigan Probate Litigation.

The confusion over whether Michael Jackson had a will based estate plan or a living trust based estate plan probably led to the AP article discussing the differences between a will and living trust. You can read the article, including the Michael Jackson reference here: Will or Trust? Understanding the differences.

As the article explains, a will based estate plan is typically used when you're only making one time distributions to individuals and do not care that your heirs have to use the Michigan probate court to administer the estate.

A living trust based estate plan avoids probate and also has provisions so that you are not leaving lump sum assets to beneficiaries.

Christopher J. Berry, Esq., A Bloomfield Hills Living Trust Attorney, is a Partner with The Law Offices of Witzke Berry PLLC, which practices in the areas of Estate Planning, Trusts and Estates, and Michigan Probate Litigation.

With the down economy Michiganders and the rest of the nation faces, it is important to review your last will and testament, your revocable living trust, and your designated beneficiaries to make sure they still make logical sense.

Why? Because when your estate plan was created, most likely, you had more assets then you currently do. For example, maybe in your revocable living trust you made a $10,000 gift to the Michigan Humane Society or your church. Well, now that your overall portfolio is down, that $10,000 gift may be a larger percentage of your estate than you had really planned and you would like to see more left to your children instead.

Another reason you need to review your estate plan (wills, trusts, beneficiary designations of accounts and life insurance), is because of the Federal Estate Taxes.  With no change on the Federal Estate Tax exemption amounts on the books yet and a down economy, maybe your estate plan tried to plan around the Federal Estate Taxes at a certain exemption amount.  Well with the depressed economy, maybe you are nowhere near the Federal Exemption amount (this year $3.5 million).  Well, it might make sense to simplify your trust based estate plan now so that the administration is easier for the beneficiaries.

Our office recommend annual meetings to review estate plans.  The economy is just one of the reasons an annual review with your Michigan estate planning lawyer make sense.

Christopher J. Berry, Esq., A Bloomfield Hills Trusts and Wills Attorney, is a Partner with The Law Offices of Witzke Berry PLLC, which practices in the areas of Estate Planning, Trusts and Estates, and Michigan Probate Litigation.

Ever wonder what the absolute essential Michigan Estate Planning documents are? Well, Business Week put together a list, from caregiving.com listing the essential documents for any estate plan not including a Will. You can read the article here: The Essentials.

The key estate planning documents, according to the article, are:

• Medical Directive. This is also commonly called a living will.  This document makes known your wishes regarding life support.  Michigan is the only state that does not recognize by statute a living will.  However, we do have case law stemming from the Martin case, that recognizes living will type language.
• Durable Power of Attorney for Health Care. This document appoints someone to make your medical decisions for you if you become incapacitated.  In Michigan, we call this document the Patient Advocate Designation.
• Privacy Release.  This document allows your patient advocate to get access to your medical directives.  In our office we call this a HIPAA Authorization.  HIPAA places severe penalties on physicians who release your medical information to an unauthorized party.  The HIPAA Authorization releases the physician from liability for sharing your information with the individiuals named in the document.
• Durable Power of Attorney for Finances.  The individually tailored durable power of attorney appoints someone to manage your finances for you.  The document can be effective immedialty or upon disability.
• Revocable Living Trust.  A Revocable living trust allows you to avoid probate while exerting more control over your assets than what a last will and testament would provide.

It goes without saying, these documents should be prepared by a Michigan Estate Planning Attorney.

Christopher J. Berry, Esq., A Bloomfield Hills Elder Law Attorney, is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Michgian Long-term Care Planning, and Michigan Medicaid Planning.

The Michael Jackson Estate probate hearing was today, TMZ has a quick and dirty live blog summary of what is taking place which you can read here.

Basically, the Probate Judge has enforced the provisions of the 2002 Jackson last will and testament that we have all seen.  That means that Branca and McClain will be the administrators (called personal representatives or executors) for the Michael Jackson estate.  Additionally, the probate judge may appoint a special attorney for the children's interest in the matter.

Christopher J. Berry, Esq., A Bloomfield Hills Trusts and Wills Attorney, is a Partner with The Law Offices of Witzke Berry PLLC, which practices in the areas of Estate Planning, Trusts and Estates, and Michigan Probate Litigation.

As Michigan Wills and Trusts attorneys, we've reviewed many estate plans during our 25+ years of practicing estate and business planning. Many people think they are "all-set" because they had an estate plan done years ago. They have their revocable living trust, their last will and testament, their disability documents including powers of attorney for financial decisions and medical power of attorney for health care decisions. 

Unfortunately, we've seen to many cases where, in reality, they were not all set and if something had happened they would have been better suited to rely on Michigan laws of intestacy than what their estate plan said.  Luckily, because of our reviews we've been able to remedy the situation.

So what's the main problem?  Typically one of two things. 

First, clients may have funded their revocable living trust properly at the time of the creation of their estate plan documents.  But over the years as they have changed accounts, bought life insurance, purchased the new house, they didn't consider the effect on their estate plan and they failed to fund the trust properly.  This is the main reason we offer annual reviews to our clients to ensure their trusts are funded properly.

The second major issue is caused by changes in family situation that should be reflected in the estate planning documents.  Depending on how the documents are written and the change in family situation, this can lead to the disinheritance of beneficiaries the grantors thought they were including in the estate plan.  For example, unexpected deaths, births or divorces can all play a major role in the dispositive terms of anyone's estate plan.

What is the solution to ensure that your estate plan is up to date?  An annual review with your Michigan estate planning attorney.  We have a system in place at our Bloomfield Hills Law office to ensure that our clients have the opportunity to come in for an estate plan review and make any changes necessary to their estate plan so that their estate planning documents are as good tomorrow as they were the day they were drafted.

Christopher J. Berry, Esq., A Oakland County Trusts and Wills Attorney, is a Partner with The Law Offices of Witzke Berry PLLC, which practices in the areas of Estate Planning, Trusts and Estates, and Michigan Probate Litigation.

Everyone knows that Michael Jackson lead an extravagant lifestyle, with his Neverland ranch, etc. With his recent passing, one of the questions many people are now asking is just how much will his estate be worth, if anything?

In a recent article by Ethan Smith at the WSJ, one estimate of his debt is around $500 million.  On the other hand, he also had some huge assets, including a 50% ownership interest in the music publishing catalog that includes over 250 Beatles' songs.

You can read more of the WSJ Blog Wealth Report article on the topic at : What is Michael Jackson's Estate Worth?

Regardless of the size, it will be interesting to see how this all plays out, especially since there probably will be quite a bit of court involvement if there are no trust or estate planning documents that surface.

-Christopher J. Berry, Esq., a Michigan Wills and Trusts Attorney, is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Elder Law, and Probate.

You can now view Michael Jackson's last will and testament, since it is a public, court document. View it here: Michael Jackson's Last Will and Testament.

Some very interesting initial points.  First, Diana Ross was named as back-up guardian to the children.  Secondly, Michael Jackson has specifically made provisions to exclude his ex-wife Deborah Jean Rowe Jackson.

It looks like Michael Jackson has set up the Michael Jackson Family Trust, judging by the Jackson's will.  This is a good thing since a living trust is a much more private document and will be kept out of the public's eye.

Most likely the Michael Jackson Family Trust will control the disposition of the assets for the benefit of family members and children.  On it's face, this is the right step in terms of estate planning. However, it is important also to put the right assets into the Trust.  We most likely will not be able to see how the trust was funded. 

• Did he have life insurance that named the trust as a beneficiary?
• Were there bank accounts that were held in the name of the trust?
• What about his business interests?
• Will the assets have to be probated then "poured-over" into the trust, making the assets public or was the trust funded correctly?

So we have more answers and some signs that his estate planning was set up in a logical manner from an outsiders view, but we still have some important questions to answer to decide if he had an effective, well planned comprehensive estate plan set up.

Also visit South Florida Estate Planning Lawyer, David Shulman's blog, as he is also covering the Michael Jackson Estate saga and providing insight as an estate planning lawyer.

Christopher J. Berry, Esq., A Michigan Estate Administration Lawyer, is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Elder Law, and Michigan Probate Litigation.