Estate Planning & Probate FAQ

No, but without an estate plan the government often ends up with property meant for your family. Avoidable Medicaid reimbursement, unclaimed property turned over to Michigan's treasury, and poor tax planning are common causes. Wills, trusts, ladybird deeds, beneficiary designations, and powers of attorney let you control the outcome.

Usually not on their own, but trusts can help avoid taxes as part of an overall plan. Traps include unrealized capital gains, property tax uncapping, required minimum distributions from 401(k) and IRA accounts, and income tax on different asset types after death. Know the ground rules before transferring property in your estate planning.

The main difference is that a will alone does not avoid probate. A will only states how you want your estate divided, so the probate court must open an estate to administer it. A properly drafted trust is a private document that avoids public probate estate administration altogether.

Not necessarily. If you aren't legally married, your partner has no statutory priority under Michigan law to serve as your guardian or conservator; your parents, children, and siblings do. A power of attorney is critical to name who you want and to help avoid probate court if you become incapacitated.

Yes and no. A 401(k) is a qualified asset that passes by beneficiary designation, outside the probate estate. An exception arises if you name your estate as beneficiary or fail to designate one. Special IRS rules govern post-death distributions, so consult an attorney, financial planner, or CPA.