Estate Planning In Michigan
Estate planning is the process of identifying your assets and deciding how to manage and direct those assets in preparation for death. In addition to deciding who will benefit from your estate, it includes selecting one or more trusted agents to step into your shoes as a guardian, conservator, personal representative, trustee, and patient advocate. Estate planning can also involve complex tax considerations.
What Is An Estate Plan?
An estate plan in Michigan is a set of legal documents created to manage and distribute a person’s assets and responsibilities in case of incapacitation or death.
The primary documents of an estate plan typically include:
- A will – A legal document that outlines how a person wishes their assets to be distributed after their death and appoints a person or entity to take care of final matters.
- Powers of attorney for health care and financial matters – POAs allow a person to name someone to make health care or financial decisions on their behalf if they cannot do so themselves.
- A trust – Some, but not all, estate plans will include a trust. A trust can provide more detailed instructions and potentially avoid probate. A trust is a separate legal entity that continues to manage and distribute your assets for your chosen purposes after your death.
- Beneficiary designations – Accounts such as life insurance policies and retirement plans will have beneficiary designations that transfer these assets directly to the named individuals without going through probate.
- Business succession planning – If you own a business, it is important to have a succession plan in place tailored your needs and entity structure.
The state’s probate courts have a significant role in overseeing the distribution of estates, mainly when there is no will or trust in place. If you die in Michigan without a will, the laws of intestate succession will govern the distribution of your assets.
Does Estate Planning Include Elder Law?
Estate planning and elder law are related but distinct legal practice areas. While estate planning can be a part of elder law, elder law also addresses immediate concerns related to aging, such as health care decision-making and financial management during one’s lifetime.
Every adult over the age of 18 should have some type of estate plan in place. Estate planning focuses on managing and distributing an individual’s assets after their death, including the creation of wills, trusts, and powers of attorney. It also addresses issues like minimizing estate taxes and ensuring that beneficiaries receive their intended inheritance.
On the other hand, elder law encompasses a broader range of issues specifically affecting older adults. This includes long-term care planning, Medicaid planning, guardianship, and protection against elder abuse and exploitation.
How Often Do Estate Planning Laws Change?
Estate planning laws in Michigan can change periodically due to legislative updates, court rulings, or administrative changes. There is no fixed schedule for these changes, as they often occur in response to evolving legal interpretations, policy shifts or societal needs. The legal professionals at Tina S. Gray, P.C., stay current with the state’s trust and estate laws.
Contact Tina S. Gray, P.C., Today To Discuss Your Estate Planning Needs
Effective estate planning in Michigan ensures that an individual’s wishes are honored, minimizes legal complications, and provides peace of mind for the person creating the plan and their loved ones. Do you need to create an estate plan? Do you have one but have experienced a divorce or death of a spouse? Contact the firm’s office in Williamston at 517-275-5240 or send an online inquiry to schedule a consultation. Clients are encouraged to complete an estate planning questionnaire for the purpose of compiling and selecting this necessary information.