The probate court clerk can release the will only to you during your lifetime. Common examples include special needs trusts, life insurance trusts, and asset protection trusts. Especially if the person is receiving, or plans on applying for, state or federal benefits such as Medicaid and Supplemental Security Income (SSI). There are several different types of trusts (for example express trusts, private trusts, or charitable trusts) that can each be used to achieve various estate-planning objectives. Trust vs will comparison. With a trust however, there is no probate needed. If you don't name a guardian, another person can petition the court for guardianship. Call us today at (586) 776-1700 or contact us online for a free consultation, and let us get to work for you. When analyzing a Will vs Trust, this is an important question. After all, the trust itself is useless unless it controls the intended assets. The Elder Law Firm PC can help you decide between the two based on your situation. Terror clauses may be included in both wills or trust as a tool to prevent people from mounting a formal challenge.
During their lifetimes, grantors can create revocable trusts which they can alter, amend, or terminate at any time. A will is not valid if it was made under duress (by force or threats) or the improper influence of another person. Living trusts are a popular estate planning tool. A trust allows you to appoint a decision maker to ensure your business continues to thrive if you are unavailable. Having a trust vs a will. But what many people don't know is that Wills have shortfalls and potentially expensive, unintended consequences that may actually hurt their family. Special Needs Trust monies must only be used to satisfy supplemental needs. Life insurance premiums. How to create a living trust in Michigan. A trust is a fiduciary arrangement whereby a grantor (also called a trustor) gives a trustee the right to hold and manage assets for the benefit of a specific purpose or person.
However, because the grantor retains control of the trust while alive, the assets are included in the grantor's taxable estate. Our client's sister was the beneficiary, and as luck would have it, she was awful with money. In your will, you can choose who will receive your property. Preparing Trust can prevent your children from being left in the cold.
Whether you are looking for a probate attorney, an estate attorney or need legal advice when dealing with these emotional issues, you can trust our office to guide you through the process and deliver results. This could cause delays for your family and personal representative. However, this is not true of an irrevocable living trust. The key benefits and downsides associated with wills and trusts in Michigan really depend on what your estate-planning goals are. Name a guardian and conservator for your minor children, if any. "Estate Planning Primer: Trusts and Estates. Common Questions about Wills. If fraud or forgery are proven, the will or trust is not valid. The reliable trust administration attorneys at Sumner & Associates, P. will ensure that your trust is created properly and meets your individual estate planning needs. It is helpful if they are people you know who could be located to testify about the will if necessary. Michigan Legislature, Section 700.
Our trust attorney can help! However, experts recommend consulting legal counsel and other appropriate experts, as needed, to take into account your estate planning needs. Your trust will only control property which has actually been moved into the trust. A revocable trust is generally the cornerstone of every well-drafted plan. Trusts can have a limited term, the duration of the grantor's or another person's lifetime, and can hold assets and distribute them after the grantor's or other person's death. Is It Better to Have a Will or a Trust in Michigan. On the other hand, grantors give up their ownership rights to assets when they transfer to them an irrevocable trust, i. e., one which they do not control and cannot alter. If you owned property jointly with the decedent, when they died you automatically became the sole owner of that property, so it is not part of the estate. These trusts can be set up during the grantor's lifetime or according to a will. The grantor is the person who creates a Michigan living trust. If you have an estate worth less than $15, 000, you are eligible for a small probate procedure which takes only 18 days. These consequences can make it more difficult for your family members to inherit your assets according to your wishes and may void the trust entirely. Terror Clauses Can Complicate A Will Contest.
The trustee dies – If the trustee of an estate suddenly perishes and there's no designated successor, the heirs will have to go to probate court and have the judge designate a new individual. Work with an Attorney You Trust. Although the use of wills can also be costly, trusts can involve more substantial costs. Avoidance of Probate. While paying off your debts is a virtue, you also want to ensure that your creditors don't get first dibs on sentimental items and that your family members are cared for when you pass. The ex-wife, whom he had not spoken to in years, received a multi-million dollar payday. Mental capacity – Similar to reasons for contesting a will, one possible reason for litigation involves mental capacity. Technically speaking, a trust is an instrument that allows one party, called a "trustee, " to hold legal title to assets on behalf of another party, called the "beneficiary. " Change any retirement plan benefits. Trust versus will missouri. A will is a legal document that says who should have your property or care for your children after your death. Reserve Your Free Consultation Today! He has taught dozens of seminars across the State of Michigan on such topics as avoiding the death tax, protecting minor children after the parents' death, and preserving family wealth from the courts and accidental disinheritance. Materials for hobbies.
During this time, it can be difficult to maintain clear thought, let alone, navigate laws specific to trust/probate in Michigan. Wanting your property to go to nonrelatives instead of your relatives. Each distributes property according to your wishes, but have distinct differences that you need to take into consideration when creating your Estate Plan…. Because of their versatility and ease of use, revocable living trusts are among the most popular types of trusts used today. Common Types of Trusts. What Are the Differences between a Will and a Trust? In addition to providing for your heirs, estate plans often involve arrangements to support charitable purposes or address special family circumstances. To modify an irrevocable trust you need the permission of the beneficiary, not the trustee or the individual who set up the trust (the grantor). Understanding 10 Common Types of Trusts In Michigan. If you have a more complicated situation or you decide a statutory will won't meet your needs, you may want to have a lawyer help you draft a will. When you are creating a comprehensive estate plan, it is important to understand the differences between a will and trust. The purpose of the trust is to provide for your child financially while he or she is a minor. There are many different types of trusts to be aware of and choosing the right type of trust for your needs will be entirely dependent on your unique circumstances, including the size and nature of your estate and the needs of your chosen beneficiaries.
Legal fees, executor fees, inventory fees (county taxes), and other costs have to be paid before your assets can be fully distributed to your heirs. If you have assets that you'd like to transfer to someone with an illness or disability who receives government benefits, you should consider a special needs trust. Ideally, the personal representative is also someone who can settle disputes and handle things as you would want. "Introduction to Wills, " See Trusts Section. Only Michigan residents can use the statutory will. While each state has its own set of laws that govern wills and trusts within the state, the general principles are quite similar across the entire country. Hiring a probate attorney in Michigan can be very costly. Another Example of the Use of a Special Needs Trust. A Private Family Foundation. The will must be signed and witnessed by two other individuals. To be effective, provisions for disinheritance must comply with state laws whose requirements vary. However, there are no simple answers. A living trust and a will are two of the best options for dictating these instructions, but each has their own benefits and limitations. An estate planning attorney can tell you more about irrevocable living trusts.
It's OK for someone to assist you with preparing your will. Out-of-pocket medical and dental expenses. First, she can accept the inheritance and use it for any purpose, but if she does, her access to SSI and Medicaid will be restricted for a period of time. While being a legal document, a will is only a written document explaining a person's wishes until it is taken to a probate court and filed. They can also be used to move assets out of state.