1. Does a will avoid probate? No, if there are assets in your individual name when you die, your will generally must be probated. If probate avoidance is important, you should consider a "funded" revocable, living trust. "Funded" means you've transferred your assets to your trust during your lifetime. However, if you decide against such a trust, or do not get all of your assets into your trust during your lifetime, Michigan has a simplified probate procedure that significantly minimizes time and expense, anyway.
   
   
2. What is the difference between a will and a trust? A will directs the distribution of your estate after you die and must be probated. A trust also directs the distribution of your estate after you die (usually), but does not need to be probated. With a will, you still own your assets in your name. With a "funded" trust, assets you have transferred to your trust are owned by the trustee of your trust, typically you or you and your spouse, as long as you are competent. Assets you have placed in your trust during your lifetime will still be owned by the trustee of your trust after you die, usually a "successor" trustee, such as your spouse, a bank, or an adult child. A trust can be used to continue the investment and management of assets after your death, for the benefit of your children, or for anyone who may be dependent on you. A trust can be used for the lifetime management of your property and investments if you're disabled, but so can a durable power of attorney in most cases.
   
   
3. What is a living will?Michigan does not have a living will per se . Instead, Michigan authorizes the power of attorney for health care, which allows you to state your desires regarding life-sustaining treatment (like a living will), and has the added advantage of allowing you to name a surrogate, called a "patient advocate," to make medical and health care decisions for you if you can't.
   
   
4. Why should I have a durable power of attorney? If you become disabled so that you can no longer handle financial and legal matters, it is important for you to have named someone to take your place in handling these things. With a durable power of attorney you name an agent to act for you if you're disabled, usually a spouse, then an adult child, sometimes a bank. Otherwise, a loved one may need to ask the probate court to be appointed the conservator of your estate. This is embarrassing, expensive, and time-consuming, at least relative to signing a power of attorney. Married persons commonly assume that either spouse can act as to jointly-held property; this is not true of jointly-held real estate, stocks, bonds, etc., and a power of attorney is essential for married couples as well as single adults.
   
   
5. How do I protect my minor children if my husband or wife and I both die? You'll want to name guardians for your children, which you can only do if you make a will. In addition, you'll want someone responsible to hold and distribute your estate for your children, to make sure your children are provided for as they grow up, and have the benefits of a good education. This is the purpose of a contingent family trust, in which you name a trustee and give the trustee directions for holding, investing and disbursing money for your children. Without a trust, your estate is divided into equal shares for your children at your death, regardless of your children's ages; each of your children is entitled to receive his or her share of your estate outright at age 18. Most parents are uncomfortable with leaving large sums of money to children at a young age and without any controls. Except in large estates, most parents prefer a single trust for all of their children until each child has grown up and received a basic education, to make sure there is enough money and to treat all children equally. Also, a child may turn out to have special needs; if the estate has been divided into shares at the parent's death, such a child may literally use up his or her share, without any legal right to invade a sister's or brother's trust for the needed funds.
   
   
6. What about life insurance and retirement plans? Often, people have much of their wealth in life insurance and retirement accounts, so it is extremely important to make sure payments from these policies and accounts will be made properly. Your estate planning should include the review of the beneficiary designations for your life insurance, retirement accounts, annuities, deferred compensation plans, etc., so that the payouts from these plans and accounts are properly coordinated with the rest of your estate plan. Special drafting may be required for the beneficiary designations for your retirement accounts, for example, to avoid estate tax or for the recipients to enjoy tax-deferred growth for as long as possible.
   
   
7. How do I know if I need to update my estate plan? We try to help you make your estate planning documents as flexible as possible, so that they'll still accomplish your estate planning goals even if your circumstances change. But it's a good idea to look at your estate planning documents on your own about once a year to see if anything might need changing or updating. You should also check with us every couple of years or so, or whenever you've experienced a birth, marriage, disability, or death in the family, or significant change in the size of your estate. We'll also try to keep you informed about any major changes in the laws that might affect your particular plan. Please let us know if we can help, or answer any questions.

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Court Place - Suite 101
728 Pleasant Street
St. Joseph, Michigan 49085
(near your downtown banking)

Court Place - Suite 101
728 Pleasant Street
St. Joseph, Michigan 49085
(near your downtown banking)

Contact Us Now: 269.983.1000