What is a will?

A will is a legal document that allows you to decide who will administer your estate, who will care for your minor children, if any, and how your property will be distributed after your passing.

Importantly, the will only controls how certain types of property will be distributed. Not all property is controlled by a person’s will. Generally, property is only distributed under a will if it was not jointly owned at the time of death, transferred into a trust, or transferred through a pay- on-death or transfer-on-death beneficiary designation.

Any property passed by will must be done through the probate court system, which is a special court system set up to handle estates, among other things.

What is probate?

Probate is the legal process of administering someone’s estate after they have passed away. As a broad overview, probating an estate requires gathering the decedent’s assets, paying off their outstanding debts, finalizing their taxes, and distributing the remaining assets to their heirs or beneficiaries. This process is not automatic and must be formally initiated by filing the required forms with the appropriate probate court. Most individuals hire an attorney to assist them with this process.

How much does probate cost?

The cost of probate varies on a case-by-case basis depending on a number of factors, including the value of the estate, the complexity of the assets, and the number of persons who need to be involved. The typical expenses of probate include the court’s filing fees, the court’s inventory fee (a small percentage of the value of the probate estate that the court charges for their services), attorney’s fees, and compensation for the person administering the estate.

How long does probate take?

Like the cost of probate, the length of probate varies depending on the complexity of the estate. Most persons should expect at least 6 - 12 months to take the process from start to finish.

What is a trust?

Rather than thinking of a trust as its own legal entity, a trust is best described as a legal arrangement between three key persons: the settlor, the trustee, and the beneficiary.

• The settlor is the person or persons who create the trust, establishing its terms and transferring their property into the trust.

• The trustee is the person or persons responsible for following the trust’s terms and managing the trust’s property.

• The beneficiary is the person or persons whom the settlor intends to benefit from the trust.

For example, a married couple may decide to create a trust that gives all of their property to their children after the couple passes away. Let’s also say that they decided to put the wife’s sister in charge of the trust to carry out their wishes after they’re gone. In this example, the married couple would be the settlors, the wife’s sister would be the trustee, and the couple’s children would be the beneficiaries.

What are the advantages of having a trust versus a will?

Trusts may be preferred over wills because they offer more structure, control, privacy, and asset protection than wills. If set up and managed properly, trusts completely avoid probate, where a will is required to go through probate. Furthermore, trusts allow you to specify how your assets are to be managed during your lifetime, as well as how your beneficiaries may receive, use, and access their inheritance.

Many parents find these advantages especially important because they want to provide for their children’s futures in a structured and lasting manner while protecting those assets from creditors.

What are the disadvantages of having a trust versus a will?

Although trusts are often the superior means of transferring assets to your beneficiaries, they cost more than a will to create due to their complexity. Trusts also must be “funded”, which means that you must transfer title to your property to the trust in order for the trust to control that property. Since trusts can be cost prohibitive and require some additional effort to establish, some people find that wills are a good “get-the-job-done” option for passing along property to family members.

What is Michigan’s estate tax?

Currently, Michigan does not have an estate or inheritance tax.

What is the federal estate tax?

The federal estate tax is a tax on the transfer of property at death, but it only reaches high net worth estates due to the large exemption amount. As of 2025, the federal estate tax only applies to estates valued above $13,990,000 for individuals or $27,980,000 for married couples. Under current law, the exemption amounts will continue to increase annually.

What is a lady bird deed?

A lady bird deed allows you to transfer your real estate to your designated beneficiary or designated beneficiaries upon your death. The transfer only happens upon your death, and, during your lifetime, you retain full control and rights in the property, including the ability to sell, gift, mortgage, convey, or do anything else you would like with the real estate. Lady bird deeds are only recognized in a handful of states, including Michigan. Many planners use lady bird deeds to avoid probate, either transferring their real estate into their trust upon their death or directly to their beneficiaries upon their death.

What is a durable power of attorney?

A durable power of attorney selects a person, called the “agent”, who can make financial decisions on your behalf. Durable powers of attorney can be drafted to become effective only upon your incapacity, or they can be drafted to be effective immediately, regardless of your capacity. Many times, our clients choose to give their agent the ability to manage the client’s financial affairs as if they were the client themselves, with all the same powers and authority. However, we can draft the document to expand and limit your agent’s power as you would like. The creation of a durable power of attorney often avoids the need for a conservatorship proceeding in the probate court in the event you become incapacitated since you’ve already chosen who will be able to act on your behalf with regard to your finances and in what capacity.

What is a patient advocate designation?

A patient advocate designation selects a person, called the “patient advocate”, who will step in and make medical decisions on your behalf only when you become incapable of making medical decisions for yourself. Patient advocate designations drafted by our firm also include a Living Will within the document. The creation of a patient advocate designation often avoids the need for a guardianship proceeding in the probate court in the event you become incapacitated since you’ve already chosen who will be able to act on your behalf with regard to your wellbeing and in what capacity.

What is a living will?

A living will is a common part of an advance directive where a person outlines their end-of-life wishes related to their medical treatment.