When it comes to estate planning in Michigan, it’s crucial to understand which assets may not pass under a will. Certain types of property are exempt from probate and will be distributed according to specific rules, regardless of what is stated in a will. In this article, we will delve into the various forms of property that do not pass under a will in Michigan, including joint property, life insurance policies, and trusts.
Joint Property
One type of property that does not pass under a will in Michigan is joint property. When property is held jointly with rights of survivorship, it means that upon the death of one owner, the surviving owner automatically inherits the deceased owner’s share. This transfer of ownership occurs outside of the probate process and is not governed by the terms of a will.
Life Insurance Policies
Life insurance policies are another example of assets that bypass a will in Michigan. The proceeds from a life insurance policy are paid directly to the named beneficiaries and are not considered part of the deceased individual’s estate. As a result, these funds are not subject to probate and are distributed according to the beneficiary designation on the policy.
Trusts
Trusts are legal arrangements where a trustee holds and manages assets on behalf of a beneficiary. In Michigan, assets held in a trust are not typically subject to probate, as they are considered separate from the deceased individual’s estate. The terms of the trust document dictate how the assets are to be distributed, bypassing the need for probate court involvement.
Legal Code Reference
For further clarification on the laws governing property that does not pass under a will in Michigan, you can refer to the Michigan Compiled Laws (MCL) Section 700.1104. This section outlines the rules regarding non-probate assets and the distribution of property outside of the probate process.
Final Considerations on Non-Probate Assets
Understanding the types of property that do not pass under a will in Michigan is essential for effective estate planning. By being aware of how assets such as joint property, life insurance policies, and trusts are handled outside of probate, individuals can ensure that their wishes are carried out according to their intentions. Consulting with a legal professional experienced in estate planning can provide further guidance on navigating these complex matters.
Buried in Work’s Additional Resources
Buried in Work provides Michigan state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.
If you have feedback, questions, or ideas for future articles or Information Hubs, please contact us. Your insights help us create valuable content.
