Probate Process Without Estate Planning Documents
In this blog entry, we will discuss the probate process when a decedent passes away and they do not have any estate planning documents and have no co-owners or beneficiaries on their accounts. An estate for a person who does not have a Last Will and Testament is called an intestate estate. If you have any questions, our Warren, MI probate lawyer is available to talk.
Since there is no will nominating someone to serve as Personal Representative, who has the priority to serve as Personal Representative of the Probate estate is defined by statute.
Typically, the surviving spouse has first priority to serve as Personal Representative if the decedent has a surviving spouse. If there is no surviving spouse, and the decedent has surviving children, then all of those children have equal priority to serve as Personal Representative. This can lead to lengthy and costly litigation with multiple court hearings if more than one child wants to serve as Personal Representative, as the court will have to decide who among the children that want to serve is best suited to do so.
Once a Personal Representative has been appointed, that Personal Representative will have the same duties previously touched upon in our last blog post. Once again, it will be mandatory in the vast majority of cases that the Probate estate remains open for at least 5 months.
Since there is no will naming the beneficiaries of the decedent’s estate, who the beneficiaries of the estate are as well as what share of the estate each beneficiary is entitled to receive is also defined by statute and is dependent on the relationships of the close family members of the decedent.
Typically, the beneficiaries are the surviving spouse, if any, and the descendants of the decedent. It is important to note here that the surviving spouse does not get all of the probate assets of the decedent if the decedent has surviving descendants, or, in the absence of surviving descendants, surviving parents.
For the probate estate of an unmarried decedent, the beneficiaries in an intestate probate are slightly different than for a married decedent.
One thing you may have noticed is that whether the decedent was married or unmarried, Michigan law does not provide a mechanism for friends, charities, neighbors, or other nonrelatives to receive any distributions from the probate estate.
Indeed, nonrelatives are not entitled to receive any distributions from intestate decedent’s estates, even if all of the family of the decedent was estranged from the decedent and they had a close relationship with the decedent.
It is also important to note that estranged and illegitimate descendants are treated the same as all other descendants of the decedent in this scenario and have an equal claim for receiving a distribution of the Probate estate’s assets and to be appointed Personal Representative of the Probate estate as all of the decedent’s other descendants.
As you can see, this is the least desirable scenario as it leaves the most ambiguity and room for litigation.
Proper estate planning and funding of your estate plan is critical in achieving your estate planning objectives and making things easier for your loved ones once you are no longer with us. It can also give you peace of mind knowing that things such as, what happens to your business is your choice.
If you are grieving over a loved one and need help with probate or want advice on things such as selling the home you inherited, we are here to help.
Please contact Gudeman & Associates, P.C. today for your no-obligation consultation.
