The death of a loved one brings immense emotional difficulty. When that person did not leave behind a last will, the grief is often compounded by confusion about their property and financial affairs.
We understand this is a sensitive time. Rest assured, Michigan law provides a clear, if sometimes complex, roadmap for settling the affairs of someone who passed away “intestate,” which is the legal term for dying without a valid will. The process is called probate, and it happens under the supervision of the local Probate Court.
1. Determine Which Assets Must Go Through Probate
Before starting any formal court process, you must figure out which assets the probate court needs to oversee. Many types of property transfer automatically outside of the will or probate process. You need to identify these non-probate assets first.- Jointly Owned Property: Assets titled jointly with a right of survivorship, such as a home or a bank account, pass immediately to the surviving owner.
- Designated Beneficiary Accounts: Life insurance policies, IRAs, 401(k)s, and Payable-on-Death (POD) or Transfer-on-Death (TOD) bank accounts go directly to the named beneficiaries.
- Trust Assets: Property that the decedent previously transferred into a living trust is exempt from probate entirely.
2. Assess the Size of the Estate
The next step in Michigan depends on the total value of the deceased person’s solely-owned assets. Michigan offers simplified processes for smaller estates, which can save time and costs. For estates valued below a specific, annually adjusted threshold, the family may qualify for a simplified small estate procedure called a Petition and Order for Assignment. This process, often handled by a relative or the person who paid the funeral bill, allows the court to directly assign property to the heirs after funeral and burial expenses are paid.3. Petition the Probate Court and Appoint a Personal Representative
When full probate is necessary, an interested person, usually a surviving family member, must file an application or petition with the Probate Court, which officially initiates the court process. The person filing also requests that the court appoint them or another qualified person as the Personal Representative (PR). The PR is legally responsible for administering the estate.4. Understand Michigan’s Laws of Intestate Succession
Since the deceased left no will to state their wishes, Michigan law dictates who receives the probate assets. This set of rules is called Intestate Succession. The distribution depends entirely on who survives the decedent:- Surviving Spouse and No Children/Parents: The spouse inherits the entire estate.
- Surviving Spouse and Descendants (Children, Grandchildren): The spouse receives a calculated share (including a statutory dollar amount that adjusts yearly) and the descendants divide the remainder. The exact split depends on whether all descendants are also descendants of the surviving spouse.
- No Surviving Spouse: The entire estate passes to the decedent’s descendants, divided “by representation.” If there are no descendants, the estate passes to the parents, then to siblings, and so on, following a specific statutory order.
5. Fulfill the Personal Representative’s Duties
Once appointed, the Personal Representative takes on several key responsibilities to properly administer the estate. These duties are mandatory and involve strict deadlines and court filings.- Gather and Inventory Assets: The PR must locate all probate assets, establish their value as of the date of death, and prepare an inventory. This inventory must be filed with the court and given to all interested parties within 91 days of the appointment.
- Pay Debts and Taxes: The PR must formally notify all known and unknown creditors of the estate, allowing them a specific time to submit claims. Debts, taxes (including the decedent’s final income tax return), and estate expenses must be paid before any money goes to the heirs.
- Manage Property: The PR is responsible for maintaining and safeguarding the estate’s property, such as securing real estate or managing investments, until the distribution is ready.