If you have recently lost a loved one, you may qualify for survivor benefits in the state of Michigan. And if that is the case, you will need to understand how survivor benefits intersect with estate planning for families. This is especially important for surviving spouses who may be dependent on any remaining financial resources, such as survivor benefits.
Whether you have already started the estate planning process or not, it’s strongly recommended that you work with an estate planning attorney in Michigan when a spouse passes away. At Warren & Schairbaum, PLLC, our estate planning attorneys can help you evaluate your estate plan after the death of a spouse in Michigan, as well as help you determine whether you qualify for survivor benefits.
Understanding Social Security Survivor Benefits
Not all family members will have access to survivor benefits in Michigan after a loved one passes away, as there are eligibility criteria that must be met. Generally speaking, the following family members may receive these benefits:
- Surviving spouses
- Minor children
- Dependent parents
- Disabled adult children
Spouses may be eligible to receive Social Security survivor benefits if they are 60 years or older and were married at least 9 months before the spouse passed and they haven’t remarried, or if they are disabled and at least 50 years of age. An exception to these age requirements is if the spouse is the caretaker of the deceased worker’s child who is under the age of 16 or disabled.
Also, even divorced spouses may be able to receive these benefits as long as the marriage lasted 10 or more years.
For children to receive survivor benefits, they must be under the age of 18. This is sometimes pushed to 19 if they are still attending school full-time. However, adult children may also qualify if they are disabled and the disability occurred before their 22nd birthday.
Estate Planning With Survivor Benefits: How Families Can Plan Ahead
When you have any type of asset or financial resource, this is something you need to include in your estate plan. The same rule applies when you have survivor benefits in Michigan, as you need to take certain steps to ensure this resource is protected.
The good news is that Michigan has surviving spouse rights, which help to ensure that the surviving spouse is supported when their loved one passes away. But this doesn’t mean that you shouldn’t be proactive, as this is the only way you can truly prepare for the future and protect your loved ones.
Here are some tips to help you plan ahead so that your family has the resources that they need:
- Establish wills and trusts: Every Michigan resident needs to have a will in place, as this helps to outline their last wishes and their estate plan. Without a will, intestate succession law would apply. Additionally, using trusts can help you better protect certain assets and financial resources so that they don’t have to go through probate.
- Guardianship: If you have any minor children or disabled adult children, you need to plan for guardianship. This ensures that your children will continue to get the care and financial assistance that they need.
- Power of attorney: You should also have power of attorney documents in place in case you become incapacitated and can no longer make important decisions on your own. A power of attorney can act on your behalf in a variety of ways so that your last wishes are still upheld.
- Beneficiary designations: In Michigan, assets are protected from probate when there is a beneficiary designation. This is when you name a beneficiary who will receive that asset upon the time of your death, removing the need for it to go through probate. You can use beneficiary designations for things like life insurance policies, bank accounts, retirement accounts, etc.
Families should also work closely with an estate planning attorney in Michigan. An attorney can help you better understand Michigan estate planning law and whether or not you meet the qualifications for survivor benefits.
Common Estate Planning Mistakes Families Make
The estate planning process in Michigan can feel overwhelming, which can lead to a variety of mistakes being made by accident. And unfortunately, this can come with serious consequences for your loved ones later on.
Here are some examples of the most common estate planning mistakes families make that you should try to avoid:
- Failing to update beneficiary designations, especially after significant life events.
- Assuming that Social Security survivor benefits are enough to support your spouse or other dependents.
- Not specifying your preference for guardianship of disabled or minor children.
- Failing to set aside provisions for dependent parents.
- Not taking advantage of trusts as a way of protecting financial resources and assets from probate.
- Forgetting to update your estate plan, which can lead to inaccuracies or out-of-date information.
- Forgetting to appoint a power of attorney to act on your behalf, or designating a patient advocate to make important medical decisions if you are unable.
Another very common mistake Michigan residents make during estate planning is trying to handle this on their own. While pulling documents off of internet sources might be tempting, creating an estate plan by yourself without the help of an attorney can lead to mistakes with implications you didn’t intend.
FAQs
Who qualifies for Social Security survivor benefits in Michigan?
Surviving spouses, minor children, disabled adult children, and dependent parents could all potentially qualify for survivor benefits.
Do survivor benefits go through probate?
No, survivor benefits are considered exempt from probate.
How soon should families begin estate planning?
As soon as possible, since anything can happen at any time, and you need to be prepared. Estate planning also isn’t something you only need to do once; you should continually update your plan as your circumstances change.
Get In Touch With an Estate Planning Attorney Today
Understanding your estate plan is an important piece of retirement planning. And, if a spouse passes away, you might want to consider what effect that has on your estate plan, if any. Contact us today at Warren & Schairbaum, PLLC, by calling us directly at 734-769-9300 to discuss your situation with an experienced attorney.
