(Warning: This is a cross-post from the Estate Planning News in Michigan blog- which I also write. It's not a complete guide to intestacy laws, but the first in a series).
New Year's Day, and the season in general, is full of reflection on
how to live a better life. This leads to the tradition of making
resolutions.
One resolution many adults should
have is to plan for the future, and if one thing in the future is
certain, it is that either you will read my obituary, or I will read
yours. (Sorry, but the old adage of "death and taxes" is true, sadly.)
It's better to face facts, be prepared, and let your intentions get
carried out after death. Otherwise, the state of Michigan will do your
planning for you, through its laws of intestacy. (Intestacy means dying
without a will).
Q: I don't have a lot of things to pass to other people, or much money to pay an attorney. But what if I care about a few important things?
A: Michigan's probate code (also called EPIC, the Estate and Protected Individuals Code) can be found at MCL 700.2101 (or find it here).
The
intestacy portion begins with "any portion not disposed of by will . . .
" This means that Michigan allows for a partial will. In other words,
if you have a piece of property (real property- like the family cottage,
or personal property -- an heirloom, or your speedboat) you can write a
will to dispose of those "things," and leave the rest to be sorted out
by a probate case after you die.
As far as the cost for an attorney to write your will, the costs can reflect how simple (or complicated) your issues might be.
Q: I have siblings that I don't get along with. Will they inherit from my estate?
A:
It depends. If you have a spouse or children who live after your death
(or "survive you" as it is legally termed), they will inherit first.
This
assumes, of course, that you will have something for them to inherit
after debts from your estate are left, as EPIC insists that costs, such
as funeral expenses, be paid first.
If you have no
spouse or kids when you die, your parents will inherit from your
estate, if they survive you. Only once these potential heirs have
inherited, will other descendants of your parents inherit.
However,
it could possibly be that you die with your spouse, or shortly after,
and that your parents are already deceased. The better thing to do,
instead of leaving it to chance, is to write a will or partial will,
that makes your intentions clear that your sibling (or whomever) will
not inherit from your estate.
Another way to address the issue of the siblings, without using disinheritance, would be to leave a gift to the siblings, but make sure that any residue of the estate goes to someone else.
ReplyDeleteBut again, with no plan (no will) no one will know what you'd have intended with your estate! So that means: get to making that will!