Homeowners in Michigan should have an estate plan in place that prepares for the future and protects their home. Without an estate plan, homeowners risk having their home go through probate, which is not the ideal scenario for your loved ones.
No matter where you are in the estate planning process for homeowners, you should take the additional step of working with a Michigan estate planning attorney. At Warren & Schairbaum, PLLC, our collective years of experience have equipped us with the knowledge needed to guide our clients through the estate planning process with confidence and peace of mind.
Why Homeowners Need an Estate Plan
Without an estate plan in Michigan, probate isn’t avoidable, which means that your loved ones will have to go through the long and often expensive process of probate court. Passing away without any estate planning documents, such as a will, also means that your estate will have to follow Michigan’s intestate succession laws. This will dictate who manages your estate, how disputes are resolved, who inherits your assets, and who will serve as a guardian for any dependents.
Even though one of the main purposes of having an estate plan is to document your last wishes, it is also in the best interest of your loved ones. Without an estate plan, your home may not go to the person who you feel deserves it most, or, depending on what other assets you have, it may have to be sold to cover the expense of probate itself.
Using a Will to Protect Your Home
A will is usually the backbone of an estate plan, helping you better protect your home. It allows you to list beneficiaries, designate a personal representative, and nominate guardians for any minor children or other dependents.
Your will is also a good place to name who you want your home to go to or if you want it to be shared between multiple beneficiaries.
Having a will in place protects your estate from going through Michigan’s intestate succession laws since it clearly outlines how you want your property distributed at the time of your death. However, keep in mind that this does NOT mean that your estate won’t have to go through probate; this simply means that the probate process will be governed by your will.
Using a Trust to Protect Your Home
Another type of estate planning document you can use to protect your home is a revocable living trust. A revocable living trust allows you to add property to the trust while maintaining control so that you can make changes as needed. At the time of your death, the trustee you have appointed will distribute the property to the correct beneficiaries.
Because of its flexibility, a revocable trust is one of the best options for protecting your home. Also, property in a revocable living trust won’t need to go through probate, making the transfer process faster and more private.
Other Property Transfer Tools in Michigan
In addition to a will and a revocable living trust, there are some other property transfer tools you can use in Michigan to protect your home and other assets, such as:
- Lady Bird Deeds: A Lady Bird Deed, or enhanced life estate deed, is a tool available specifically for Michigan residents that allows you to name a beneficiary who will get the property at the time of your death. This deed helps bypass probate entirely, while also allowing you to retain control of your property while you are still alive.
- Joint tenancy with right of survivorship: With joint tenancy with right of survivorship, more than one individual will have ownership of the home. The right of survivorship means that the full ownership of the property will be automatically transferred to the living owner when one owner passes away, without having to go through probate.
- Beneficiary designations: In Michigan, you can add transfer-on-death or payable-on-death designations to certain types of accounts, allowing a beneficiary to automatically inherit those accounts when you pass away. This is another option that allows your loved ones to completely avoid probate.
A Michigan estate planning attorney can help you evaluate the pros and cons of each of these options so that you can protect your family home from probate. It’s always recommended to get the help of a legal professional since trying to create an estate plan on your own can often result in a variety of unknown legal issues.
Common Mistakes Homeowners Make
Even though there are many options available to homeowners when they are creating an estate plan, there is still plenty of room for error. Here are some of the most common mistakes Michigan homeowners make when trying to protect their home from probate:
- Not planning for incapacity.
- Forgetting to update deeds.
- Not updating their estate plan as needed.
- Trying to create an estate plan by themselves.
- Creating an invalid will.
- Not properly coordinating trusts with mortgages or insurance.
FAQs
Can a living trust help avoid probate for my home in Michigan?
Yes, if done correctly, transferring your home to a revocable living trust can protect it from the probate process.
What happens to my home if I die without a will in Michigan?
Your home, as well as the rest of your estate, will be handled according to Michigan’s intestate succession laws. When this happens, your assets and property will have to go through probate and may not be transferred to the family members you would have chosen.
What is a Lady Bird Deed?
This is a Michigan-specific estate planning tool that allows you to bypass probate and transfer property to a beneficiary after you have passed away, but maintain control of the property while you are still alive.
Should I put my house in a trust?
Protecting your home with a trust is a very effective option in most cases. But you should still consult with an estate planning attorney to determine whether or not this is the right fit for your estate planning goals.
Get In Touch With a Michigan Estate Planning Attorney Today
If you want to ensure that your home is protected and goes to your loved ones after you have passed away, you need to create an estate plan. With an estate plan, there are several ways you can transfer your home after death if you have the right legal documents in place. Contact us today at Warren & Schairbaum, PLLC, by calling us directly at 734-769-9300 to discuss your situation with an experienced attorney.
