In the event someone passes away without a valid will in Michigan, this is formally referred to as passing “intestate.” When this occurs, Michigan law determines who inherits the assets left in the estate. Unfortunately, this is a complex legal process that can result in significant confusion and delays for surviving family members. As such, understanding how intestate succession works in Michigan is critical, as it can help ensure you take the necessary steps to protect your loved ones and avoid the complicated probate process.
What Is a Will?
A will is a legal document that declares how your assets will be distributed upon your death. Some of the assets you may include in your will may be real estate, bank accounts, securities, and items of personal property. You can also include gifts for your friends and family members, such as letters or a favorite photograph. If you pass away without creating a will, your assets will be divided by the state of Michigan, rather than according to your wishes. This can cause a lot of stress for your loved ones and may even lead to a long and difficult litigation process, during what should be a time of mourning.
What Does It Mean to Die Intestate in Michigan?
When someone dies intestate, it means they have passed away without leaving a legally valid will. In the event this occurs, their estate, meaning everything they own and any outstanding debts, must undergo the probate process. For most property, this means being distributed in accordance with the intestate succession laws as dictated by the Michigan Estates and Protected Individuals Code (EPIC). The court does not consider verbal promises of property or intentions – only statutory inheritance rules are applicable.
Michigan’s intestate laws are outlined in MCL 700.2101 through MCL 700.2114 of the Estates and Protected Individuals Code, ultimately establishing inheritance orders, defining shares, and determining how heirs may be represented. The probate court is required to adhere to these statutes, as they do not have the discretion to alter distributions based on fairness or intent.
What Happens if You Die Without a Will?
- Your estate will undergo the Michigan probate process
- Michigan intestate succession laws will determine how assets are inherited
- The court will appoint a personal representative to manage this process
- Assets are distributed in accordance with statutory laws, not your wishes
- The process can take months, if not longer, depending on the complexity of the estate
Who Inherits Under Michigan Intestate Succession Laws?
As mentioned, when someone passes away without a will, their assets will be distributed in accordance with the intestate line of succession. In general, this means that their surviving spouse and closest relatives will inherit assets first, though the exact method of distribution will depend on whether the deceased had children and if those children were shared with the surviving spouse.
If there Is a Surviving Spouse
- If the couple has no children, the spouse will typically inherit the entire estate
- If children exist between the deceased and their surviving spouse, the spouse will inherit the entire estate
- If the spouse had children from a prior relationship, their current spouse will receive a pre-determined portion of the estate, while the rest is divided among the decedent’s children
- If the parents of the deceased survive and there are no children, the spouse may share the estate with the parents
If There Is No Surviving Spouse
- Assets will be divided in equal shares to surviving children
- If a child has passed away, their share may be divided among their descendants
- If no children survive, assets will go to parents
- If no parents survive, assets will go to siblings
- If no close relatives exist, distant relatives may inherit assets
If no legally recognized heirs are identified, the estate is ultimately escheated to the State of Michigan in accordance with MCL 700.2105. Essentially, this means that the state will assume ownership of your assets if there are no identifiable family members to inherit the property. Though uncommon, this can be avoided entirely with comprehensive, proactive estate planning.
What Assets Are Subject to Intestate Succession?
It’s imperative to understand that not all assets are required to undergo the probate process. In general, only assets that are solely owned and do not have beneficiary designations are distributed in accordance with intestate succession rules.
Assets That Typically Go Through Probate
- Solely held real estate
- Personal property titled only in the name of the deceased
- Vehicles without survivorship designation
- Bank accounts without joint ownership
Assets That May Avoid Probate
- Jointly owned property with survivorship rights
- Life insurance policies with named beneficiaries
- Assets held in trust funds
- Retirement accounts with named beneficiaries
Who Administers the Estate if There Is No Will?
When creating a will, one of the most important matters to decide is who will serve as the executor of the estate. However, if there is no will and subsequently no named executor, the court will appoint someone of its choosing to serve as the personal representative of the estate. This is similar to an executor, but they are not personally chosen.
Court Appointment Process
- The surviving spouse is granted priority to serve as the personal representative
- If there is no spouse, the heirs may file a petition with the court
- The court can appoint a neutral third-party if disputes arise
- The personal representative must post bond unless waived by the court
Duties of the Personal Representative
- Identity and secure assets held in the estate
- Inform heirs and creditors of the passing
- Pay outstanding debts and taxes
- Distribute remaining assets in accordance with intestate laws
- File the required documents with the probate court
What Are the Risks of Dying Without a Will?
Unfortunately, many are unaware that when they pass without a will, their wishes will not be honored. This means assets may be distributed to family members in a manner you do not agree with, family conflict can occur, and legal costs may increase. Michigan’s intestate laws are intended to ensure fairness, meaning they may not reflect your wishes.
Legal and Financial Consequences of Dying Intestate
- Assets can go to relatives you did not wish to inherit from your estate
- Stepchildren do not have automatic inheritance rights unless they are legally adopted
- Family disputes are more common
- Probate can increase costs and result in lengthy delays
- Minor children may have court-appointed guardians
What Makes a Will Valid in Michigan?
It’s important to understand that simply establishing a will is not enough to avoid intestate succession and probate – the will must be legally valid and adhere to all Michigan laws. Failure to meet these requirements can result in a will being deemed invalid and the subsequent treatment of the estate as intestate.
Michigan Will Execution Requirements
- The testator must either sign the will themselves or another person must sign the testator’s name at their direction and in their presence
- At least two people must witness the signature and sign their names on the will within 30 days of each other
- The testator must be at least 18 years old and of “sound mind and memory”
- At some point during the will’s execution and attestation, the testator must tell each witness that the document is their will
Contact Our Michigan Estate Planning Firm Today
Sometimes, divorce, family, and estate matters are difficult to navigate. Fortunately, they do not have to be with the assistance of a compassionate, knowledgeable attorney with Collis, Griffor & Hendra who is willing to guide you every step of the way. If you need a seasoned firm to help you with any divorce, family, or estate-related matter, please do not hesitate to contact our firm today to schedule a consultation.