Estate Planning in Michigan Providing Quality Legal Services to Help Individuals and Families Plan For the Future

Under Michigan law, the probate court ensures the decedent’s property is distributed after they pass away. This legal process, known as probate administration, gives the personal representative the legal authority to gather the decedent’s property, pay outstanding debts and taxes, and transfer assets to the rightful beneficiaries. However, in cases where the decedent left no will and significant assets, it is often necessary for the family or beneficiaries to hire a probate attorney who can assist them with navigating the complex legal system. With the help of a skilled lawyer, families can typically save valuable time and money to obtain the resources they need.

Unfortunately, there is no definitive answer on how long the probate process may take. The length of time varies based on many factors, including the size of the estate, whether a will can be located, issues that may arise with the personal representative or disputes among heirs or creditors. For example, suppose heirs feel the personal representative is not effectively handling estate administration. In that case, this can lead to legal battles that take considerable time to be decided by the probate court. As a result, the estate administration can take years to complete. However, in most cases, probate takes approximately seven months to complete.

A common misconception is that all estates must go through probate in Michigan. However, not all estates meet the legal requirements for probate. For example, assets that are jointly held, such as bank accounts and real estate. Probate can also be avoided if an individual has created a will or living trust outlining how their assets are to be distributed. However, depending on the size of the estate, if an individual dies without having made a last will or trust and has assets solely listed in their name, the estate will most likely have to go through probate.

An individual can make several different legal designations to grant another person legal authority to make medical decisions should they become incapacitated. These designations include patient advocacy, durable power of attorney for healthcare, and healthcare proxy. However, not all of these designations come with the same legal authority. Therefore, it is always best to consult an experienced attorney who can evaluate your needs and determine the best legal option. For example, even though a patient advocate designation allows another person to make medical decisions for you, it does not give them legal authority to handle your financial matters.

The individual who designates another person to be their patient advocate can authorize them to make various medical decisions on their behalf. Some of the most common decisions that patient advocates are authorized to make include consent or refusal of medical treatment, the ability to sign a Do-Not-Resuscitate order, and arranging for mental health or home healthcare treatment. In addition, the patient advocate may arrange for care in a hospital or nursing home. However, individuals considering assigning a patient advocate to help them should they become incapacitated should always hire an attorney who can provide more information regarding their legal rights.

Under Michigan law, parents and other family members can set up trusts for individuals with special needs. Family members can leave money, life insurance, or property to a special needs individual without fear of them losing essential government benefits but assuring they can lead a comfortable life. Several different types of special needs trusts (SNT) are available, such as first or third-party special needs trusts, and created based on several legal factors. Because the assets are under the trustee’s control and not the beneficiary, they do not count against their eligibility for public benefits.

Unfortunately, a revocable trust will not shield your assets from being seized by a nursing home. When a revocable trust is established, the assets contained within the trust are still under the owner’s control. However, individuals who feel they may eventually have to enter a nursing home or other long-term care facility should consider creating an irrevocable trust to protect their assets. When assets are placed in an irrevocable trust, they are considered the property of the trust, not the owner, and are thus shielded from being seized. However, other qualifications must be met, so it is always best to hire an elder law attorney to assist you with structuring your assets.

If a Michigan court determines that an individual is incapacitated and needs ongoing care, they make them a “ward” of the state and appoint a guardian to manage their affairs. Guardianship is typically time-consuming and restrictive. However, individuals can avoid guardianship by appointing a Patient Advocate ahead of time who will be authorized to make medical decisions on their behalf. Appointing a Patient Advocate is a far better option because it gives the individual making the designation the ability to choose who will act as their agent. In contrast, if the court decides, it may be someone unfamiliar with the ward.

Medicare covers certain “skilled” nursing services and in-home care costs for a limited period of time and only under certain conditions. After that, Medicare does not provide coverage for long-term care costs.

No. With proper planning, a majority, if not all, of your assets can be protected from Medicaid “spend down.”

Maybe. The options available to you will depend upon your situation. An attorney experienced in long-term care and Medicaid planning can explain your remaining options, if any.

No. While the State agencies are helpful, they will not explain how to protect your assets from”spend down.”