Making estate planning decisions is an important step in securing future financial stability for your family. I will take the time needed to gather information at the outset in order to understand your goals and future objectives for your estate. By exploring options and alternatives together, we can create a plan best suited to your individual situation. Topics frequently discussed at this stage of the process include:
For clients wishing to control the allocation of their assets before and after death, I can assist in the following areas of representation:
Why do I need a Will?
If you die leaving assets in your name without a Will directing where your assets are to go, the State of Michigan will step in after you die and decide for you. By failing to have an inheritance plan in place, you have decided to rely on the law to write your inheritance plan. The law concerning distribution of assets in such circumstances may not conform to your wishes especially in circumstances involving second marriages, minor children, charitable giving, unequal distributions among children or grandchildren, or giving to non-family members.
The Michigan Statutory Will is a fill-in-the-blank form created by the State legislature for persons who want a basic do-it-yourself will and whose wishes fall within the choices contained in the form.
Should I just put the kids on title to my house? (No!)
Joint ownership of assets between husband and wife is a common method of avoiding probate upon the first spouse's death. After the first spouse's death, clients often ask if they should put their children's names on their assets to avoid probate. This is a dangerous and inadvisable strategy, as it can result in your assets being subject to the problems of each person on title to your assets. If any of your joint co-owners goes through a divorce, bankruptcy, automobile accident, owes taxes to the IRS or experiences unforeseen financial difficulty, their creditors can come after your jointly held assets.
Another drawback occurs if you decide to sell, mortgage or transfer your jointly held assets. Once you have added joint owners to your assets, you will need their permission to dispose of or encumber those assets. While no one anticipates this to be a problem when they set up joint accounts it can lead to difficulties if your joint co-owners do not agree to disposing of what they now consider their joint property. A better way to avoid probate without these risks is setting up a Living Trust.
What exactly is a living trust?
A living trust is a separate legal entity, like a corporation, created to hold and manage assets. After creation of your trust, assets are transferred into the trust and managed according to your wishes. Once created, the living trust takes effect immediately and can be changed as often as you wish while you are alive and competent. At your death, the trust assets can be distributed to your beneficiaries and terminated, or it can continue into the future with your assets distributed to your beneficiaries over time and under the conditions you have directed in your trust.
Some of the benefits of a living trust are:
The main drawbacks to establishing a living trust are the initial fees for setting up the trust (which are higher than creating a simple will) and the time and effort involved in transferring your assets and accounts into the name of the new trust. If you don't mind spending a relatively small amount to save your children the larger cost of probate in the future, and if you are willing to transfer your assets into the name of your trust, then creating a living trust is an option to consider. A revocable living trust is a flexible, adaptable and easily created instrument that will direct the distribution of your assets during your life and when you are gone. After giving careful thought to your objectives, I will be happy to sit down with you and create a trust to achieve your purposes.
What is a special needs trust?
A special needs trust is an irrevocable trust created to benefit a beneficiary with a disability. The trust is designed to allow a person under a disability or a chronic illness to hold trust assets without the assets being considered for purposes of qualification for governmental benefits. The trust is set up to provide for the extra care over and above that which the government may provide, for the disabled or chronically ill person.
What is probate?
Probate is the process by which a deceased person's assets are distributed to his or her heirs. The "probate estate" includes the property of the person dying whose titles are in the name of the person dying or his or her estate (such as houses, cars, or bank accounts that are only in the name of the deceased person). The title to these probate assets has to be changed to someone other than the deceased -- this is the purpose of probate.
How much does probate administration cost?
The cost of settling an estate through probate administration depends on the assets in the estate and whether there are any disputes. Generally, the more valuable and diverse the assets in the estate and the more disputes, the greater the cost of administration. This is because large estates require more time and work to liquidate all assets. Any disputes between beneficiaries must also be resolved before creditors can be paid and distributions made to beneficiaries.
Attorney fees for probate administration are calculated on an hourly rate. Some small estates will qualify for summary proceedings which greatly reduce the amount of work and therefore costs of probate. In all estate proceedings, I work closely with the client to determine the most cost effective and timely plan for administration of the estate.
What about do-it-yourself Wills and Powers of Attorney?
Many computer programs and web sites now offer "do-it-yourself" Will and Powers of Attorney kits. Most people consider using these kits to save on attorney fees. While the difference in price between do- it-yourself kits and attorney fees for preparing documents is not trivial, the cost of a mistake in selecting which document to use or how to set it up can cost you and your family much more in the future. I have represented a number of families in will contests and estate litigation cases that could have been avoided by better drafting and execution of their documents.
When you retain me to help you with estate planning, you are paying for my experience, advice and judgment. I spend time determining what you wish to achieve, and then recommend the best options for achieving your goals.
While self-help programs and web sites can educate you, they are rarely a substitute for professional guidance. An error in execution or drafting can result in the failure of your do-it-yourself estate plan, and unintentional ambiguities can open the door to litigation challenging your plan. If you are determined to prepare the documents yourself, you may want to check with your local law library for up to date forms or books explaining how to prepare these documents, so you can confirm that the Will or Power of Attorney kit you are using does in fact satisfy Michigan law.
If you wish to discuss your options or are ready to have your estate plan documents created, please contact me for an initial consultation.
Paul A. Buyers, Esq.
32721 Grand River Avenue
Farmington, MI 48336
Phone: (248) 471-9100
Fax: (248) 471-4292
Email: paulbuyers@buyerslaw.com
DISCLAIMER
The above information is general information only. It is not intended to be relied upon as legal advice in any particular case. Each case is specific to the individual and must be considered and evaluated on an individual basis. In order to retain my services, a written retainer agreement must be signed. Unless and until a written agreement is signed, there is no attorney-client relationship and you should not take anything on this site as advice in any case in which you may be involved. If you have any further questions about your legal rights and remedies, please feel free to contact me.