Frequently Asked Questions
Do Wills avoid probate court?
No. Using a Will ensures that your estate will go through probate. A Will is literally an instruction to the probate court indicating how your property is to be distributed. Wills do not avoid probate. They guarantee it.
I don’t have a very large estate, so it seems to me that having a Trust is overkill and would be more expensive. Why can’t I simply use a simple Will?
You are right. Trusts are not for everyone. It is a matter of personal choice and making sure that a trust is right for you and your situation. There is no right or wrong way. Both are fine just as long as you understand the pros and cons of each.
I hold everything joint with my spouse; therefore, I thought I would simply put my children’s names on all real estate that we own so we can avoid probate that way. Is there any problem with this?
This type of “estate planning” often results in a family feud and may also result in unnecessary income taxes. Also, once your child is a joint owner on your house, they have the same rights as you to the property. This means that if your child gets sued, files for bankruptcy, or doesn’t pay their taxes, your house is their asset and you don’t need this trouble. Instead, we recommend a beneficiary, or lady bird, deed.
Why does a trust avoid probate?
The key in avoiding probate with a revocable living trust is the retitling of assets. Assets titled in the name of the trust avoid probate. At the time of the person’s death, if the asset is owned by the trust and is not in the decedent’s name alone, that asset does not pass through the probate estate. Therefore the Successor Trustee of the trust is now able to handle the asset as the trust document instructs. Note that after a trust has been established, it is still necessary to transfer the ownership of the assets held in the person’s name over to the trust during the person’s lifetime. Failure to do this will result in probate.
Wouldn’t using a trust during my lifetime restrict me in what I can do with my own property?
No. A revocable living trust is a document created while you are living, but does not prevent you from continuing to use your property as you wish during your lifetime. An irrevocable trust will restrict your property rights.
Aren’t Patient Advocate Designation documents for people over sixty (60) years of age?
No. Beginning at age 18 Michigan law enables you to name a surrogate known as a “patient advocate” to make medical care decisions for you in the event you become incapable of communicating such decisions for yourself. Your patient advocate can make any decision you can make within the limitations you set forth in the documents.
Will I have to pay estate or inheritance taxes?
You will only have estate taxes if your estate is worth more than $11.4 million dollars. You get to double this if you are married. So unless you are very wealthy, you should be fine.