Making a will or establishing a trust frequently brings up an uneasy feeling about death. However, it must also prompt you to evaluate your responsibility to your survivors and, if your financial situation allows, your charitable or communal interests. A will tells your heirs how to take care of your assets and reduces arguments by telling them what to do with them.
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Learn more about the importance of preparing a will.
Dying Without a Will or Trust Prepared
If you die without having made a valid will, you are said to have died “intestate.” When you die, the probate court will distribute your assets following intestate succession laws. If you are married, there are several techniques for dividing shared and separate property.
If you don’t have a will, you don’t have an executor. Thus, the court will appoint someone (usually a family member) to manage your estate. No one has the right to move your probate assets without being named executor, and in most cases, an executor can’t do anything without court permission.
Under most intestate succession laws, only spouses, registered domestic partners, and family members can inherit. Unmarried partners, friends, and charitable organizations don’t get anything. If the deceased was married, the surviving spouse usually receives the lion’s share. The property is normally passed down to the surviving spouse if there are no children. More distant relatives inherit only when there is no surviving spouse or children. If no relatives are located, which is extremely rare, the assets are taken over by the state. If you don’t have a will, all you can do is pray that the people who benefit and their inheritances are in line with what the laws say should happen.
Every state has regulations governing what happens to assets if someone passes away without a will or living trust. A living trust, often called a revocable living trust, is among the best, simplest, and most common ways to leave assets to loved ones and prevent financial calamity.
A living trust is a legal instrument that specifies who should inherit your assets following your demise and who should manage it. You put assets into the trust and continue to manage it while you’re still living.
When you pass away, a person you’ve selected will begin managing the estate, following the instructions you’ve specified in the trust. A living trust, unlike a will, eliminates the need for a probate court. If you have a properly funded trust, your heirs will avoid the costly and time-consuming probate court process. Most importantly, it gives you the assurance that your loved ones will be cared for even after you are gone.
Probate Isn’t Always Required
In most cases, the probate court is only required if the deceased owned assets solely in his or her name at the time of death. Other assets can most likely be transferred to the new owners without the need for probate court intervention.
Below are examples of assets that do not require probate:
- assets possessed in joint tenancy by the deceased individual
- assets owned jointly by the deceased and his or her spouse as “tenancy by the entirety” property
- beneficiary-designated assets
- life insurance benefits due to a designated recipient
- trust-held assets
Probate is rarely beneficial to your heirs and always costs them time and money. Probate is only needed if your estate has a lot of complicated issues, like a lot of debts that can’t be easily paid off with the assets of the estate.
Seek Legal Advice from a Goldman and Associates Attorney Today
Our attorneys are well-versed in Michigan law and are acquainted with the local probate courts. While we have assisted clients with various probate and trust management cases, we never forget that each case involves a grieving family. We provide families in the state of Michigan with both expertise and compassion. Set an appointment with us today!