Estate planning is important for everyone in Michigan, regardless of your annual income or the amount of property you own. There are many different kinds of assets that exist, and through estate planning, you can help to minimize the financial burdens associated with certain assets, and you can also help to protect certain assets for your beneficiaries.

Before you begin the estate planning process, you should compile a list of all of your assets. What assets should be on this list? A pamphlet from Fidelity Investments lists some of the following common assets for people who want to begin the estate planning process:

  • Your financial accounts;
  • Real estate;
  • Businesses; and
  • Other valuable personal possessions.

Depending on the type and amount of assets you own, you may want to treat some of these assets differently for the purposes of estate planning. An estate planning attorney in Grand Rapids can help you determine which of your assets may be exempt from probate, which assets will be subject to estate tax, and the expected total tax burden of your estate.

Financial Accounts

There are many different types of financial accounts, including but not limited to:

  • Checking accounts;
  • Investment accounts; and
  • Retirement accounts.

It is important to recognize up front that a significant amount of money held in a checking or investment account can be subject to significant taxes, and you may want to consider a trust to minimize estate taxes.

As an article in Forbes Magazine points out, one key to ensuring that the contents of accounts are distributed according to your wishes is properly titling your assets and reviewing your beneficiary designations. Many investment accounts such as IRAs or 401(k)s, according to the Forbes Magazine article, permit a designation of a beneficiary. Why would you want to have beneficiary designated property? As a pamphlet from the State Bar of Michigan underscores, this type of property does not have to go through the probate process. In addition, many accounts that are owned jointly—for instance, an account titled in the name of more than just the decedent—may also be exempt from probate.

Real Estate, Real Property, and Other Valuable Property

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When you own a home or another piece of property, it is important to think carefully about how your property is titled. As we mentioned above, property owned by two persons as “joint tenants with right of survivorship” will allow that property, upon the death of one of those persons, to pass to the survivor without going through probate.

Real estate and real property can include a family home, a vacation house, a condominium, and even rental property. In the estate planning process, you should keep in mind that the value of any real property will need to be assessed, and that value will be added to your estate (which is taxable).

Other personal property, not unlike real property, will also need to have the value assessed. There may be ways to avoid probate on valuable items such as automobiles, jewelry, or art, but this can be more complicated than simply co-owning a family or a vacation home.

Business Property

Business property will need to be accounted for in a way that is different from your personal real property or other individual assets. Indeed, business property has its own complicated factors, and it is important to speak with an experienced Michigan estate planning lawyer to determine the best business succession plan.

Seeking Assistance from a Michigan Asset Protection Attorney

When it comes to estate planning and including particular assets, most people want to make sure their property is distributed to the right beneficiary, and most people also want to make sure that they minimize taxes and costs associated with distribution of that property. A dedicated Michigan estate planning attorney can discuss your options for setting up a trust, as well as other ways in which you may be able to ensure that certain assets are exempt from the probate process. Contact the Law Offices of David L. Carrier, P.C. today to get started.

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If you have recently experienced the death of a loved one, you may have questions about the probate process. For many residents of the Grand Rapids area, the term “probate” is not one with which most of us are familiar. Yet when you are dealing with the estate of a family member, it is important to understand precisely what probate is, how probate works and when it is used, and what the process entails. Generally speaking, the probate process falls within the broader category of trust and estate law, and it is an issue that tends to arise during estate planning and in administering the estate of a deceased person.

What is the Probate Process?

First, and most importantly, you are likely wondering: what is probate? As an article from the American Bar Association explains, probate is the legal word for the process of administering the estate of the deceased when that administration is supervised by the court. What do we mean when we say administering the estate? A pamphlet from the State Bar of Michigan helps to explain what estate administration requires in our state. In short, during the probate process, a personal representative will administer the property of the deceased by doing the following:

  • “Marshalling” the assets of the deceased, which includes sorting through the property of the decedent, assembling and securing assets, and having those assets valued;
  • Paying charges owed by the deceased, such as final medical bills or funeral expenses, taxes, any money owed to creditors, and expenses associated with administering the estate; and
  • Distributing the remaining assets of the estate to the decedent’s beneficiaries.

Distribution of assets will happen in one of two ways. If the decedent had a will, then the assets will be distributed according to the will. If there was no will, however, then the assets will be distributed according to the law of intestate succession in Michigan.

When is the Probate Process Necessary?

When is the probate process necessary? Typically, whenever a decedent has property in his or her name, or has rights to receive property in his or her name (such as a debt owed), then the property must go through the probate process. In Michigan, there are some exceptions, and an experienced Michigan estate planning lawyer can examine the specifics of your case.

Understanding the Process of Probate

Now that you know what the probate process is and when it is required, it is important to understand the general steps in the probate process:

  • Family of the decedent will make funeral arrangements, locate the decedent’s will, compile a list of decedent’s property, and determine whether probate will be necessary;
  • Nomination of a personal representative will occur, and the court will appoint a personal representative of the estate;
  • Personal representative will assemble the deceased’s assets;
  • Personal representative will handle a wide variety of financial issues concerning the deceased’s property, including paying any charges owed by the deceased, distributing exempt property, and planning for taxes;
  • Personal representative will distribute the assets of the deceased to the beneficiaries; and
  • Personal representative will close the estate once all requirements of the probate process have been satisfied.
  • Generally speaking, after the appointment of the personal representative and prior to closing the estate, the personal representative has a duty to property manage the estate, including investments and other assets.

    Contact a Michigan Probate Attorney

    If you have questions about the probate process and how it works, an experienced probate lawyer in Michigan can assist you today. Contact the Law Offices of David L. Carrier, P.C. for more information about our services.

    How Do I Make An Estate Plan? | Law Offices of David L Carrier
    Deciding what will happen to your estate after your death can be an emotional and difficult process, but it can also save a decedent’s loved ones a significant amount of stress and worry. Fortunately, in Michigan, there are a variety of ways to plan for the disposal of an estate. Many residents choose to create a will specifically designating who will gain ownership of certain assets upon his or her death. Others choose to create a living trust or a testamentary trust, which are agreements under which assets are held and managed by an individual for the financial benefit of another. Whether you choose to establish a trust or write a will, it is important to have the advice of an < experienced estate planning attorney who can help you create a legally binding agreement that will protect both you and your loved ones.

    Planning An Estate

    Before planning an estate, it is important to take a few preliminary steps, including:

    • Identifying all living relatives who are to receive assets under the terms of the will or trust, including their addresses and relationship to the testator;
    • Listing all real estate property, financial assets, and personal possessions, including their values and their locations;
    • Estimating expected estate taxes, legal fees, and funeral expenses; and
    • Creating a rough plan for how the assets will be divided.

    What to Include in an Estate Plan

    It is critical to include certain information when drafting a will or trust, including:

    • Who will receive the testator’s property, including real estate, personal items, stocks, bank accounts, and retirement funds;
    • The names of alternate beneficiaries who will inherit the assets in the event that the original beneficiaries predecease the testator;
    • Who will act as an executor and administer the estate after the testator’s death;
    • The identity of a back-up executor;
    • The name of the person who will act as a trustee and manage assets in the trust until they are distributed;
    • The name of the person who will act as a guardian to any minor children;
    • A provision conferring power of attorney on someone to manage the testator’s financial affairs in the event of illness or mental incompetence;
    • If establishing a trust, a provision stating when the beneficiaries will receive the assets contained in the trust;
    • Any bequests intended for charity;
    • Instructions for how the testator’s business should be operated; and
    • The testator’s signature and the signatures of two witnesses.

    Contact an Experienced Estate Planning Attorney Today

    Although contemplating death is emotional and often painful, it is in the best interest of all parties to make plans for that eventuality. For instance, knowing that his or her family will be financially provided for can put both a testator and his or her family member’s minds at ease. Organizing and dividing up assets and property can be a complex process, so if you or a loved one have not written a will or established a trust, please contact The Law Offices of David L. Carrier, P.C. by calling 616-361-8400 and a member of our dedicated legal team will help you schedule an initial consultation with an experienced Michigan estate planning attorney.

    Setting Up Your Estate Plan in Michigan

    There are few things that are more important than careful estate planning. All adults, no matter how young or old, need a well-crafted estate plan. It is imperative that you consult with an experienced Grand Rapids estate planning lawyer who can help you set up a plan that fully protects your legal rights and the interests of your family. When setting up your estate plan, the following three issues must be addressed:

    1. Protection for yourself: The simple fact is that there may come a day when you will not be able to make decisions for yourself. To protect your legal, financial and medical interests, you should set up a durable power of attorney and an advance healthcare directive. By doing so, you will empower trusted loved ones to make important decisions for you in the event that you are no longer able to do so.
    2. Protection for your family: If you have children, your estate plan needs to fully account for their protection. In fact, your estate plan should provide protection for anyone that relies on you. Whether it is a relative or even a beloved pet, your estate plan should make arrangements that considers their unique needs.
    3. Protection for your assets: Finally, a proper estate plan must account for the full extent of your assets. A will is one effective way to transfer property, though it is not the only way to do so. It is often also not the best way to do so. Many people in Michigan can benefit from other estate planning tools, such as a family trust.

    Setting Up a Family Trust

    A Michigan family trust is an estate planning tool that will allow you to efficiently distribute your assets to your heirs. The following is a list of four basic steps that are required to set up a trust in Michigan:

    1. Select a trustee: The trustee is the person who is in charge of the assets within the trust. He or she will be responsible for collecting, managing and eventually distributing all of the trust’s assets.
    2. Select the beneficiaries: You also must select the beneficiaries for your trust. These are the people, or perhaps single person, who will eventually be able to claim the assets within the trust. In Michigan, a person does not need to actually be a family member to be selected as a beneficiary of a family trust.
    3. Determine what assets will be included: You will need to select the specific assets that will be included in your trust. A trust is not a ‘catch-all’ asset distribution tool. You must assign assets to the trust. A wide range of assets can be transferred to a trust, such as real estate, vehicles, money, an investment account, and even valuable heirlooms.
    4. Transfer assets into the trust: Finally, Michigan family trusts must be fully funded at the time of creation. This means that assets must be properly titled in the name of the trust or you will lose out on the important benefits that the trust provides. While this can be a complicated process, an experienced Grand Rapids family trust lawyer can help.

    Do You Need Legal Assistance?

    At The Law Offices Of David L. Carrier P.C., our team has extensive experience helping Michigan families prepare themselves for the future. If you are beginning to think about the estate planning process, please join us at one of our Grand Rapids LifePlan Workshops. Please do not hesitate to reach out to us today to learn more, we look forward to hearing from you!

    Most people in Michigan have at least a vague understanding of how wills operate. This is certainly a good thing, as wills are extremely important and are an essential estate planning tool. However, they are far from the only asset distribution tool available. For many individuals in Michigan, a family trust is actually the best way to set up the distribution of their assets. If you want to know if a family trust is right for you, or if you have any questions about setting up a Michigan family trust, please do not hesitate contact an experienced estate planning attorney today to learn more about your legal options.

    Family Trusts: Understanding the Basics

    Wills and family trusts can both be used to pass on assets to heirs. For this purpose, a family trust often provides key advantages over a will. Family trusts are also cost-effective and relatively easy to set up. Even though a trust is a simple tool, it is an extremely powerful one. The basic process for establishing a trust is as follows:

    • You must determine who will be the beneficiaries of the trust;
    • You must select the specific assets that will be included in the trust; and
    • You need to consult with a qualified attorney who will be able to draft the trust document and who will ensure that your assets are properly transferred and titled so that they are fully protected by the trust.

    Is the Right Time to Set-up a Trust Now? Four Questions to Ask Yourself

    • Do you want to keep full control over your assets?
    • Do you want a flexible estate plan that can be altered at any time?
    • Do you want to avoid the costly and time-consuming process of probate?
    • Do you want to reduce the risk that a dispute will arise over your assets?

    If you answered ‘yes’ to any of those questions, you should consider setting up a trust today. In fact, for many people, the right time to set up a trust is now. Far too many people are not taking advantage of the full range of estate planning options that are currently available to them. In the unfortunate event that you pass away, your family trust will ensure that your assets are distributed as efficiently and painlessly as possible. Additionally, during your lifetime, you will always have full control over the assets that are in the trust. At any moment, you can make changes to your trust so that it is always updated to your current wishes. Further, you could even revoke your trust entirely. The bottom line is that with a family trust, you will never lose control of your assets or any flexibility to make changes.

    Contact Our Office Today

    At The Law Offices Of David L. Carrier P.C., our team has helped many families find the estate planning solution that best fits their needs. If you have any questions about family trusts, or estate planning in general, please do not hesitate to contact us today. Our firm has offices in Grand Rapids, Norton Shores, Holland and Portage and we proudly serve families throughout western Michigan.

    Top Questions About Estate Planning | Law Offices of David L Carrier

    You might have heard friends and family members discussing the values of estate planning, and you may have wondered whether you should be talking with an estate planning attorney. Generally speaking, nobody likes to think about estate planning, from questions concerning end-of-life care to wills and inheritances. Yet regardless of age, it is extremely important to think about estate planning and to discuss your options with an experienced Grand Rapids estate planning lawyer. Indeed, estate planning can help to ensure that your wishes are carried out regardless of your own mental or physical capacity, and safeguard can help to safeguard your requests with regard to your property and assets.

    While many Grand Rapids residents recognize the importance of estate planning, this area of the law often leaves people with questions about how it works. The following are the top three frequently asked questions we received about estate planning in Grand Rapids, MI:

    What is Estate Planning?

    So, you have heard your neighbors, co-workers, and perhaps even family members talking about meeting with an estate planning lawyer. But what is estate planning, exactly? In short, according to the American Bar Association (ABA), estate planning is the process of planning for the legal disposition of your current assets and any assets you obtain in the future, as well as making arrangements for end-of-life care.

    As such, estate planning allows you to determine who will inherit your property upon your death, but it also allows you to make decisions about who will handle your finances and medical care in the event that you are unable to do so yourself. We cannot stress enough that everyone, regardless of age or income, should speak with an estate planning law firm about the future. As the ABA points out, about 55 percent of all Americans die without a will or any estate planning documents, and this can create significant difficulties for loved ones.

    What Documents Will I Need to Create?

    Estate planning is complicated, and it is extremely important to seek assistance from an experienced Grand Rapids estate planning attorney. Some of the following documents that typically are part of an estate plan include but are not limited to:

    • Will: your will allows you to choose how your property will be distributed upon your death. Generally speaking, you can be as specific as you want to be, naming as many or as few beneficiaries as you see fit.
    • Financial (or “durable”) power of attorney: this document allows you to name someone who will handle your finances in the event that you become incapacitated and cannot handle your finances yourself.
    • Medical power of attorney: this document allows you to name a person who will make medical decisions for you if you cannot do so yourself.
    • Advance directive: this document allows you to make clear what your medical wishes are with regard to life-saving treatment in the event that you cannot communicate those wishes yourself.

    What Happens If I Do Not Have a Will or Other Estate Planning Documents?

    If you become incapacitated and cannot make decisions for yourself, the state of Michigan may appoint a guardian under Michigan law. If you die in Grand Rapids without a will, the will result in your assets being distributed to family members. Specific distribution depends on how many surviving family members you have at the time of your death.

    Contact a Grand Rapids Estate Planning Attorney

    If you have questions about creating a will, a power of attorney or other estate planning documents, you should speak with a Grand Rapids estate planning attorney as soon as possible. At The Law Offices Of David L. Carrier P.C., we have years of experience helping Michigan residents with various aspects of estate planning. Contact us today to learn more about our services.

    While estate planning is important for avoiding unnecessary taxes and for making sure that your assets are passed on to the next generation in accordance with your wishes, there is another benefit that is rarely talked about. Establishing a LifePlan and having your financial affairs in order can afford you a tremendous amount of piece of mind. You’ve worked hard for what you have and having a solid LifePlan can help you thrive and enjoy everything that you’ve worked for.

    What Is A LifePlan?

    A comprehensive LifePlan is much more than just a financial plan for the future. At The Law Offices of David L. Carrier we embrace a team approach and work with our clients’ banks, financial advisors, and brokerage firms to craft the financial aspects of your estate plan, as well as drafting the necessary legal documents that will make your plan a success. While each client’s needs are different, an estate plan can easily include the following documents:

    • Revocable Living Trust: A trust that goes into effect during the creator’s lifetime and can be revoked.
    • Protection Trust (Irrevocable Trust): A type of trust that cannot be changed or altered after it is created.
    • Last Will and Testament: A legal document that dictates who will receive your assets when you die. If you have minor children then your will can also appoint a guardian to take care of your kids in case you die while your children are still minors.
    • Health Care Power of Attorney: A legal document that names someone to make medical decisions on your behalf if you are incapacitated and unable to speak for yourself.
    • Financial Power of Attorney: A legal document that names someone to make financial decisions on your behalf if for some reason you are not able to speak for yourself.

    Why Is Estate Planning Important?

    Many people put off estate planning because they are uncomfortable thinking about a time in the future when they may be incapacitated or dead. While this sentiment is completely understandable, planning for the future is very important and is certainly worth the hassle. If you need a bit of convincing check out the American Bar Association’s list of things that estate planning can do for you. This list includes:

    • Providing for your family after you’re gone;
    • Allowing your beneficiaries to access their inheritance quickly;
    • Minimizing the taxes that your estate will be required to pay;
    • Easing the strain on your family by making funeral arrangements for yourself before you die; and
    • Ensuring that your business continues smoothly after you pass away.

    Need Legal Advice?

    If you live in Michigan and are ready to create a LifePlan, or if you are interested in modifying a plan that you already have, contact our offices for a consultation with David L. Carrier today. The documents involved in a LifePlan can be complicated, but our dedicated team is happy to answer any questions that you have. Let David Carrier use his years of experience in estate planning to help you craft a LifePlan that meets the needs of you and your family.

    While each state has its own set of laws that govern wills and trusts within the state, the general principles are quite similar across the entire country. In fact, sixteen states, including Michigan, have adopted the Uniform Probate Code (UPC) in an effort to standardize the state laws that govern wills and trusts. Therefore, in order to examine the the key differences between a will and a trust in Michigan we must look to the language of the UPC. However, it is important to note that drafting a valid will or trust can be tricky and therefore it is always a good idea to consult with an experienced estate planning attorney who can help assess both your short-term and long-term financial goals.

    What’s A Will?

    A validly executed ‘will’ is an estate-planning instrument that goes into effect when you die and dictates how you want your assets to be distributed to your named beneficiaries. Under the Uniform Probate Code, and therefore in Michigan, there are several requirements that must be fulfilled in order for a will to be valid including:

    • The testator (aka the person that the will belongs to) must be at least 18 years old;
    • The will must be signed by at least two competent witnesses; and
    • The will must be written (aka can not be oral).

    What’s A Trust?

    A ‘trust’ is an estate-planning instrument that allows the settlor, aka the person with the assets, to nominate a trustee who will hold the assets for the beneficiaries of the trust. A trust allows the settlor to dictator how and when the the assets will be invested, distributed to the beneficiaries, etc. These instructions can dictate that the trust will take effect during the settlor’s lifetime, if the settlor becomes incapacitated, or when the settlor dies. There are several different types of trusts (for example express trusts, private trusts, or charitable trusts) that can each be used to achieve various estate-planning objectives.

    Key Differences Between A Will And A Trust

    While both wills and trusts are useful estate-planning tools, there are several key difference to keep in mind. One difference between a will and a trust is the fact that a will can only go into effect upon your death, while a trust can either be used to manage property during your life or after your death. Another important difference is that a person can only have one valid will at a time while a trust can be used to either replace or supplement a will.

    Benefits And Downsides

    The key benefits and downsides associated with wills and trusts in Michigan really depend on what your estate-planning goals are. For example, if you are looking for a way to distribute your assets while you are still alive then you will want to execute as trust opposed to a will. While keeping your goals in mind, consider some of the commonly noted benefits and downsides associated with wills and trusts that are listed below:

    • Avoiding Probate: One main benefit associated with trusts is that they can be used to avoid probate, which can save your beneficiaries time and money. Conversely, one downside of wills is that they pass through probate.
    • Privacy: If you would like for your affairs to remain private it is key to note that a will becomes a public document when you die while trust instruments do not.
    • Naming a Guardian: If you have minor children you can use a will to name a guardian for your kids, however, a trust can not be used to appoint a guardian.

    If you are wondering, “why should I do estate planning?”, or you have other questions about how to protect your assets, contact the Law Offices of David L. Carrier. David Carrier has years of experience drafting wills and setting up trusts and would be happy to discuss your options with you. Start by attending one of our Free LifePlan™ workshops, where you can learn valuable techniques that will help you plan for your family.

    Trusts are a great estate-planning tool that can be used to manage how your assets will be distributed to your beneficiaries. The basic concept is that you put assets into a trust and name a trustee who is in charge of holding and managing those assets for the benefit of the trust’s beneficiaries. While this premise sounds simple enough, trusts must be created in a particular way in Michigan in order to be valid and unfortunately mistakes are often made. This article briefly goes over how a valid trust is created and then outlines a few common mistakes with trusts in Michigan that should be avoided as they can cause your trust to fail.

    Elements Needed To Create A Valid Trust

    In order to create a valid trust there are certain requirements that must be satisfied. The following elements must be present or else your trust will not be valid in Michigan:

    Settlor Must Intend To Create A Trust

    The settlor of the trust must intend to create a trust at the time when the trust is created. This intent can be manifested via the settlor’s words and actions. It is not enough if the settlor intends for the trust to be created at a later date; in order to be valid he or she must have the present intent to create a trust.

    A Trustee Must Be Established

    A qualified trustee must be appointed to hold the trust property.

    Assets Must Be Put Into The Trust

    The trustee must be given some assets to manage on behalf of the beneficiaries.

    The Trust Must Have Named Beneficiaries

    The trust must have a named beneficiary or beneficiaries. This group must be ascertainable (it must be certain and definite).

    The Trust Must Have a Legal Purpose

    The trust must have a legal purpose that is not against public policy in order to be valid.

    It is important to be aware of these trust creation requirements as many common mistakes that cause trusts to fail in Michigan have drastic consequences simply because they invalidate one of the requirements listed above.

    Common Mistakes That Can Cause A Trust To Fail

    While there are many mistakes that can potentially invalidate a trust, a few of the commonly committed errors in Michigan are briefly outlined below:

    The Settlor Fails To Show The Required Intent To Create A Trust

    As noted above, a trust can only be valid if the settlor intended to convey their property into the trust for the benefit of the trust’s beneficiaries. This mistake is often made by using ambiguous wording in the trust instrument.

    Neglecting To Put Assets In The Trust

    In order for a trust to be valid the settlor must actually transfer assets into the trust. This is done by both listing the assets on the schedules attached to the trust and by taking physical steps to change the title of those assets. If the trust is not funded then it will fail.

    Failing To Use Effective Trust Language

    A valid trust must contain language that indicates that a legally binding agreement has been entered into. A trust can fail for using ‘precatory language’, aka language that expresses a future wish rather than a present intent.

    Failing To Name Ascertainable Beneficiaries

    The trust instrument must specifically identify who is to benefit from the trust. In other words, the trust’s beneficiaries must be ascertainable. If a trust does not have ascertainable beneficiaries then it will fail.

    Need Legal Advice?

    Creating a trust is complicated and mistakes are easy to make. Working with an experienced estate planning lawyer like David L. Carrier helps ensure that your trust is valid and functions how you want it to. To set up a meeting with David Carrier, contact our office today.

    Who gets control of your Facebook, email and other cyber accounts after you die? Michigan has enacted the Fiduciary Access to Digital Assets Act that will let account holders plan ahead and grant others access to the accounts after the owner has passed away.

     

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