Losing a loved one is a complex and emotional experience. In addition to grieving, family members often face the overwhelming task of managing their loved one’s estate. From handling financial matters to distributing assets, following the proper legal steps to ensure everything is settled according to their wishes and Michigan law is essential.
At Steslicki & Ghannam, PLC, our Plymouth estate planning attorneys help families navigate the estate administration process, making it as smooth and stress-free as possible. Here’s what to do when a loved one passes away.
Obtain the Death Certificate
The first step in handling a loved one’s estate is obtaining multiple copies of their death certificate from the local health department or funeral home. These documents are needed to close bank accounts, transfer assets, and notify institutions such as Social Security and insurance companies.
Locate the Will and Estate Plan
If your loved one had a will or estate plan, locate these documents to determine how their assets should be distributed. If a will exists, it must go through probate court unless the estate is structured to avoid probate. A trust can bypass probate, allowing assets to be distributed more efficiently.
Identify and Secure Assets
Make a list of the deceased’s assets, including:
- Bank accounts.
- Investments and retirement accounts.
- Personal property and valuables.
- Real estate.
- Vehicles.
Secure these assets to prevent unauthorized access or loss while settling the estate.
Notify Financial Institutions and Government Agencies
You will need to notify various entities of your loved one’s passing, including:
- Social Security Administration, if they were receiving benefits.
- Banks and credit unions.
- Insurance companies, to claim life insurance benefits.
- Creditors, to address outstanding debts.
Begin the Probate Process (If Necessary)
If your loved one had a will, an executor (named in the will) must file it with the probate court. The court will oversee the distribution of assets, ensure debts are paid, and handle disputes. If no will exists, Michigan’s intestacy laws determine how assets are distributed.
Michigan offers a simplified small estate process for small estates under $27,000 (as of 2024) to avoid lengthy probate proceedings.
Pay Outstanding Debts and Taxes
Before distributing assets, all outstanding debts, funeral expenses, and applicable estate taxes must be paid. Michigan does not have a state estate tax, but federal taxes may apply depending on the estate’s value.
Distribute Assets to Beneficiaries
Once debts are settled, assets can be distributed according to the will or trust. If no estate plan exists, Michigan’s laws dictate who inherits the estate, prioritizing spouses, children, and other close relatives.
Seek Legal Guidance
The estate administration process can be complex, especially when dealing with probate, disputes, or significant assets. Consulting with an experienced Michigan estate planning attorney can help ensure the process is handled correctly and efficiently.
Need Help Managing a Loved One’s Estate?
At Steslicki & Ghannam, PLC, our Plymouth estate planning attorneys provide compassionate guidance for families handling the legal and financial responsibilities after a loved one’s passing. Whether you need help navigating probate, resolving disputes, or ensuring proper asset distribution, we are here to assist you.
Contact us today to discuss your situation and learn how we can help make the estate administration process easier during this challenging time.
