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probate



When someone dies, everything they leave behind in the way of assets can be described as either being "probate property" or "non-probate property." Probate property are assets left by a decedent which pass according to the terms of the decedent's will and therefore necessarily have to go through the probate court process. If a person dies without a will and leaves behind probate assets those assets also have to go through the probate court process. Those assets get distributed as set out by laws passed by the legislature (statutes). When a person dies without a will that person is deemed to have died "intestate".


Not all assets are probate assets. Some assets don't go through probate upon a person's death. For example, property that is jointly owned passes automatically to the surviving joint owner upon the death of the first joint owner. It does not go through the probate court process and the will of the person who dies has no effect on the survivor becoming the sole owner of the formerly jointly owned asset. Any asset which has a named beneficiary (most common: retirement assets and life insurance) pass directly to the named beneficiaries and do not normally go through probate. There are other steps a person can take to try to avoid the need for probate upon one's death, including the creation of a living trust.


In cases where probate cannot be avoided, someone must petition the probate court to have an estate opened and for the appointment of a personal representative (formerly call the "executor"). If the decedent left a will, it is almost certain that the will will include a provision nominating a personal representative. That is the person that the probate court will appoint to administer the estate. The personal representative's duties include gathering up the decedent's assets, paying off any lawful debts and claims against the estate, and distributing the net proceeds of the estate to those persons entitled to receive them .


When the personal representative has finished administering the estate, he or she must arrange for the estate to be closed. Prior to closing an estate, the Court will require that certain procedural steps be taken. For example, a Notice to Creditors must be published in a newspaper, putting the world at large on notice that a person has died so that creditors may file claims against the estate. An inventory fee must be paid to the Probate Court before the estate can be closed. The inventory fee is based on the total value of the items listed on an inventory of estate assets that the personal representative must prepare. Also, prior to closing an estate, the personal representative must prepare an accounting, showing the value of everything in the estate, the expenses paid by the estate, and how the net proceeds of the estate were distributed. The accounting must be provided to all of the interested persons (those named in the will or those entitled to the assets in the case of someone who dies intestate). There are quite a few other steps that must be followed by a personal representative carrying out their duties associated with administering an estate.


While someone serving as a personal representative is not required to have a lawyer, and many personal representatives do in fact navigate the probate court system without one, having a lawyer assist you with the administration of a friend or loved one's estate is a legitimate cost of the estate administration.





fred@fahrnerlaw.com

Fred Fahrner
Attorney at Law
203 South Zeeb Road, Suite 206
Ann Arbor, MI 48103
734.665.1162
fred@fahrnerlaw.com