Dykema Law

what WILL you do? Estate Planning 101

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Many of us don't have a will.  What happens if you die without a will?  

Here is how your estate will be divided: 

If you die without a will (known as dying "intestate") in Michigan, your assets will be divided amongst your immediate family. If you have a spouse but no children or parents, your entire estate will go to your spouse.If you have a spouse and parents but no children, the first $150,000 plus three-fourths of the balance of your estate will go to your spouse. If you have a spouse and at least one child, the first $150,000 plus one-half of the balance of your estate will go to your spouse. The remainder will go to your children.

If you have children and no spouse, your entire estate will go to your children. If you have parents and no spouse or children, your entire estate will go to your parents. If your parents are no longer alive, your estate will go to your siblings.

You don't always have to have a Will. Alternatives to a Will

Wills eventually become public after your death, with the details of what you owned and how much it was worth available to anyone curious enough to read the court file. As a result, many people look for more private ways to transfer their assets.

In Michigan, alternatives to making a will include:

• Life insurance policies or trusts
• Gifting cash or other assets before your death
• "Transfer On Death" ("TOD") or "Payable On Death" ("POD") bank accounts
• Holding assets by joint tenancy with right of survivorship ("JTROS"), with the assets transferring automatically to the other joint tenant at the time of death
• Holding assets through a tenancy in common, with each tenant having a divided interest in the property which can be independently sold
• Retirement plans and Individual Retirement Accounts ("IRAs")
• "Revocable living trusts" (sometimes called "grantor trusts"), giving all your assets to a trustee for management before your death

Making a Will

In Michigan, you can make a valid will if you are at least 18 years old and of sound mind. The will must be in writing and signed by you and two witnesses.

A Michigan lawyer who does a lot of estate planning can explain the consequences of some of the most basic choices you must make, such as whether property you want to leave to your minor children should be put into a trust at your death. For that reason, it makes sense to consult with a Michigan estate planning lawyer and have him or her draft your will, so that you don't make costly mistakes or accidentally not accomplish what you intended.

Putting together your estate plan is generally a simple process.  At Dykema Law Offices, we can advise you on the best estate planning package for your circumstances.

Contact us today:  dykemalaw.com or 616-363-6611