Completing a Small Estate Affidavit in Michigan

A small estate affidavit can simplify the process of transferring property when someone dies. This legal document allows heirs to bypass probate, which could save both time and money. To qualify for a small estate affidavit, the estate must be valued under a certain limit, you will need a death certificate and proof that the decedent had no will or outstanding debts. Here's what you need to do to complete a small estate affidavit in Michigan.

If you need help planning your estate, a financial advisor can work with you to manage and distribute assets.

What Is a Small Estate Affidavit?

A small estate affidavit is a legal document used to streamline the transfer of a deceased person’s assets by allowing the rightful heirs to claim the deceased’s property, such as bank accounts, vehicles and personal belongings, outside the traditional probate process.

The affidavit acts as a sworn statement that the estate qualifies for this simplified procedure and meets all the required conditions, such as the absence of disputes among heirs and the presence of a valid will. It typically requires essential documents like a death certificate and proof of the heir’s relationship to the deceased.

Requirements for a Small Estate Affidavit in Michigan

As of 2024, the limit for a small estate affidavit in Michigan is $50,000 or less . To complete the process, you will need to follow these four general steps:

• Obtain a certified copy of the deceased’s death certificate
• Provide proof of relationship to the deceased, usually through birth certificate
• Settle all outstanding debts
• Complete form PC-598 and have it notarized.

Once these conditions are met, the signed affidavit can then be presented to banks, vehicle registries and other entities holding the deceased's assets to facilitate the transfer.

One unique aspect of Michigan's Small Estate Affidavit process is that it doesn’t require the involvement of a court or a judge’s approval, unlike in some other states where additional legal oversight might be necessary. Additionally, Michigan law allows heirs to claim vehicles separately from the estate.

What Assets Are Exempt From Probate in Michigan?

In Michigan, certain assets are exempt from probate, which is the legal process of distributing a deceased person’s assets. Here’s a roundup of five assets that might be exempt:

• Jointly owned property : Assets owned jointly with rights of survivorship automatically pass to the surviving owner. This includes bank accounts, real estate and other jointly-held properties, avoiding probate entirely.
• Beneficiary designations: Assets like life insurance policies, retirement accounts and payable-on-death (POD) bank accounts are transferred directly to named beneficiaries upon the owner’s death. These assets bypass probate because they are governed by the terms set within each account or policy.
• Trust assets: Assets placed in a revocable living trust are not subject to probate. The trust dictates the distribution of its assets, allowing for a smoother and private transition of property to beneficiaries, depending on the trust’s terms.
• Transfer-on-death deeds : Real estate can be transferred without probate using a transfer-on-death (TOD) deed. This legal document designates a beneficiary to receive the property upon the owner’s death, similar to how beneficiary designations work for financial accounts.
• Motor vehicles : If the value of the vehicle is under a certain limit, Michigan law allows for the transfer of a deceased person’s vehicle without probate. This process requires specific paperwork but is typically straightforward.

How Probate Works for Surviving Spouses in Michigan

In Michigan, if the deceased had a will naming the surviving spouse as the sole heir, probate may be minimal or not required at all, especially if most assets are jointly owned or designated to pass directly to the spouse.

On the other hand, if the deceased did not leave a will , the estate is distributed according to Michigan’s intestacy laws, which typically prioritize the spouse. For a surviving spouse to navigate probate, they must first determine whether probate is necessary. If the estate’s value exceeds $50,000 and includes assets solely in the deceased’s name, probate will likely be required.

Bottom Line

Completing a small estate affidavit can offer a streamlined and cost-effective way to settle a deceased person's estate in Michigan without going through probate. This benefits estates valued up to $50,000. Working with an estate planning attorney or an estate planning advisor can help ensure that your estate complies with Michigan’s laws and regulations.

Estate Planning Tips

• A financial advisor can help you create a personalized estate plan for your needs and goals. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now .
• If you want to know how much life insurance you need to take care of your family, SmartAsset's life insurance calculator can help you get an estimate .

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