Probate can be a complex and time-consuming process. But for small estates, Michigan offers a simplified probate procedure. This process is designed to make it easier and less expensive for families to settle a loved one’s estate, particularly when the estate’s total value is modest.
Knowing when and how small estate probate applies can help your family efficiently manage the distribution of assets without unnecessary delays or legal hurdles.
What Qualifies as a Small Estate in Michigan?
In Michigan, an estate is considered “small” if the total value of the deceased person’s assets is below a certain threshold, after subtracting funeral and burial expenses. As of February 2024, this threshold is $50,000. If the estate’s value falls below this amount, the estate may qualify for one of the simplified probate procedures available under Michigan law.
It’s important to note that certain assets, such as those held in joint tenancy, life insurance policies, or retirement accounts with designated beneficiaries, may not be included in the probate estate. These types of assets pass directly to the named beneficiaries, which can further reduce the value of the probate estate.
Simplified Probate Procedures for Small Estates in Michigan
The Berrien County official website outlines the process for assigning property in small estates. Michigan offers two primary options for small estates. Both are designed to make the probate process faster and less burdensome for estates that meet the small estate criteria.
Affidavit for Small Estates
The Affidavit for Small Estates is the simplest probate option available for qualifying estates. This process allows heirs to claim the estate’s assets without going through formal probate. To use this method, at least 28 days must have passed since the decedent’s death, and the estate’s value must be less than $50,000, minus funeral and burial costs. The person claiming the estate will need to fill out the affidavit, which provides information about the deceased, the assets, and the intended distribution to heirs.
This affidavit can then be presented to financial institutions, businesses, or individuals who hold assets belonging to the deceased, allowing them to transfer ownership of the assets to the rightful heirs. Once the affidavit is accepted, the assets can be distributed according to Michigan law The Affidavit for Small Estates is particularly useful for small bank accounts, personal property, or vehicles. However, the Affidavit cannot be used to transfer real property.
Petition and Order for Assignment
The Petition and Order for Assignment is another simplified probate process in Michigan for small estates valued at $50,000 or less, minus funeral and burial costs. This process allows heirs to handle a deceased person’s estate without formal probate administration, which can be lengthy and costly. Unlike the Affidavit for Small Estates, however, the Petition and Order for Assignment process may be used when the estate includes real property.
To initiate, an heir files the Petition and Order for Assignment with the probate court, detailing the deceased’s assets, debts, and rightful heirs. Once filed, the court reviews the petition and, if approved, issues an order assigning the estate’s assets to the appropriate heirs, allowing them to manage distribution and payment of debts.
This process offers some creditor protection and is faster, less formal, and typically more affordable than traditional probate, providing a practical option for settling smaller estates in Michigan.
Biggest Benefits of Small Estate Probate
The small estate probate process offers several benefits to families dealing with the loss of a loved one:
- Lower Costs: Because the small estate process avoids full probate, it is typically much less costly, saving families money in court fees, legal expenses, and administrative costs.
- Faster Resolution: Small estates often avoid lengthy probate delays. With the affidavit or summary proceedings, assets can be distributed much more quickly than in a formal probate case.
- Simplified Procedure: The paperwork and court involvement are minimized, which reduces stress for grieving families who want to settle the estate as efficiently as possible.
When Small Estate Probate Isn’t an Option
While the simplified probate process is a great solution for many estates, not all estates will qualify. Estates with assets exceeding the $50,000 threshold must go through formal probate, which involves more court oversight and administrative steps.
Additionally, small estate probate may not be an option if the estate is particularly complex, involves disputes between heirs, or includes significant debts that need to be settled. In these cases, full probate ensures that all debts are paid, and the estate is distributed according to Michigan law.
Avoiding Probate for Small Estates
Even for small estates, avoiding probate altogether can be a beneficial strategy. By using estate planning tools such as a revocable living trust, individuals can ensure that their assets pass directly to beneficiaries without going through any probate process. Assets held in trust are not part of the probate estate, which can save time and money for the beneficiaries.
Additionally, joint ownership with right of survivorship and payable-on-death designations for bank accounts and lady bird deeds for real property can help small estates avoid probate. These mechanisms ensure that the assets transfer automatically to the surviving owner or named beneficiary upon the decedent’s death.
How Can An Estate Planning Attorney Help with Small Estates?
Navigating the small estate probate process in Michigan can be easier with the help of an experienced estate planning attorney. An attorney can ensure that the necessary documents are completed correctly, help determine whether the estate qualifies for small estate probate and provide guidance on minimizing court involvement.
An estate planning attorney can also help individuals plan their estate in advance, using trusts and other strategies to avoid probate and simplify the transfer of assets to their heirs.
Legacy Counsel Is Here to Help Small Estates Through Probate in Michigan
While the small estate probate process in Michigan is designed to be more straightforward, it’s still beneficial to consult with an experienced estate planning attorney.
Based in St. Joseph, Legacy Counsel PLC is a boutique estate planning law firm serving Southwest MI, including Berrien County, Cass County, Van Buren County, and more.
Contact us today or call 269-932-4017 to schedule a consultation.
