In this article, you will learn:
- How special needs trusts can protect their beneficiaries
- What happens if someone dies without an estate plan
- Why probate should be avoided
It is important to have a power of attorney for medical decisions, power of attorney for financial decisions, and a living will that incorporates your end-of-life decisions so that everything is written, executed, and your loved ones know exactly what you wanted in certain circumstances.
Special Needs Trusts Explained
Special needs trust are the trusts that can be used if a potential beneficiary is on state aid. They have a way of giving money to that particular client but still allowing all of their services from state aid to remain in effect. It holds it, gives them money in areas that they are allowed to have it, and then ensures that money does not go over a specific amount.
How To Ensure That The Trust Established For A Special Needs Child Is Properly Utilized
A special needs trust is established to meet the financial requirements of a dependent with special needs, and it appoints them as a beneficiary. It funds the beneficiary’s medical care or day-to-day needs while retaining the dependence entitlement to government benefits. There are two types of special needs trusts, first-party and third-party. So, the money that is going to be willed from one person to somebody that has special needs will need to flow through the special needs trust because that will make sure that it is going to the appropriate categories, and it also will ensure that the distribution is not over the amount that would terminate their state aid.
Ways To Protect Assets For A Living Parent Or Spouse In Michigan
With the advice of an experienced attorney and a skilled drafter, they can draft an asset protection trust for this specific purpose.
What To Expect In Estate Administration When Someone Dies With A Proper Estate Plan In Place
If a person dies who had all the proper estate planning documents in place, then trust administration is a very easy process that requires the average layperson very little guidance from their trusted attorney. They will need to identify the assets, gather them, identify any estate expenses, and then ensure that the property or the assets get to the appropriate beneficiaries.
What To Expect If Someone Dies Without A Will Or An Estate Plan In Place
If someone dies without a will or a trust, then the person is said to die intestate. If they died intestate, the Michigan legislature has a statutory scheme of how your assets will pass. So first, if you have a spouse, it will pass to your spouse first, then it will pass to your kids. If you do not have children, then it is going to reach out to your siblings.
How Probate Can Be Avoided In Michigan
There are two ways that you can avoid probate. A trust can avoid probate, but also making sure there is nothing in the deceased’s estate to probate is a viable option. So, for example, if the estate passed to beneficiaries or passed through a trust, then there is no need to have probate.
What To Do If An Estate Ends Up Going Through Probate In Michigan
If you need to probate an estate of a loved one, I encourage you to hire an experienced probate lawyer. They have critical knowledge that can get you started and save you money and hassle in the long run. Right away, they are going to have to file documents with the death certificate and the original will (if they have a will), and they are going to have to nominate somebody to take responsibility of the probate process. From that point on, there is going to be things that need to be done in a strict time sequence. So, I would recommend that they get that handled through an experienced probate lawyer as soon as possible.
For more information on Planning For Potential Incapacity In Michigan, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (616) 681-4042 today.