Magill & Rumsey, P.C.

Real Estate

It is our belief that you need an estate plan to help manage property during your lifetime, and to ensure that it is disposed of according to your wishes at the time of your death.  Michigan law provides a set of "default" rules that control what will happen to your property if you die "intestate" (without a will).  If you fail to establish an estate plan during your lifetime, these are the rules the court will follow in distributing your property.  The statutory plan may or may not be to your liking.  By putting some time into finding out what your options are, and developing a plan now, you can ensure that you provide for your loved ones, benefit charities, give direction regarding the care of your children and dependents, and make other important decisions.

You can also make provision for circumstances in which you are still alive but cannot make decisions about important matters such as your own property and finances, and your own medical care.  This situation could arise because of an incapacitating accident or illness.  By taking some time to plan now, and prepare the required documents to implement your plan, you can ease the burden on your loved ones in the future, and give yourself peace of mind in the present.

Some of the documents many people need in a complete estate plan are the following:

Will:  A will is essentially a set of instructions to the Probate Court regarding who you want to receive your property, and when they should receive it.  It also allows you to specify gifts to individuals and charities, and to state who you want to oversee the management of the process of carrying out your final wishes.  If you have children, it also provides the critical function of enabling you to designate who will be responsible for the physical custody of your children, their care, and the management of any property left to them.  You can also use your will to provide for delayed distribution of property to your children, in case they are not capable of managing the property themselves at the time of your death.

Revocable Trust:  A revocable trust is a legal entity that you establish during your lifetime to hold some or all of your property.  It is particularly valuable for people who need help, or may need help at some point in the future, in managing their own financial affairs.  It can help to minimize or totally avoid Probate Court proceedings, thereby making assets available sooner for beneficiaries, avoiding public disclosure of the assets in the estate, saving Probate Court fees and legal fees, and in some instances minimizing or eliminating estate taxes.  A revocable living trust is most often managed by its creator as long as he or she is alive and capable, and after death or incapacity by someone the creator selected earlier to follow his or her wishes, as stated in the trust.

Durable Power of Attorney:  A durable power of attorney allows someone that you select (your "agent" or "attorney-in-fact") to manage all or some of your financial affairs when you are unable to do so.  It is called a "durable" power of attorney because the agent's authority endures beyond the point at which you cannot act for yourself.  In general, if a power of attorney is not "durable," then the agent's ability to act terminates when you are incapable of acting yourself.  It is an invaluable tool to avoid or minimize "living probate," the situation in which an increasing number of Americans now find themselves, in which they are unable to manage their own property due to a debilitating injury or disease.  Without an agent already appointed under a durable power of attorney, court involvement will often be necessary to manage the person's finances.

Patient Advocate Designation:  This is a legal document by which you appoint another trusted individual or individuals to make decisions regarding your care, custody, and medical treatment during any period in which you are unable to make those decisions yourself, due to your mental or physical condition.  The Patient Advocate Designations dovetails with the Durable Power of Attorney in the event you are incapacitated.  The former allows another to make various decisions regarding your medical care, and the latter allows the same or another individual or individuals to make decisions regarding your financial affairs.

It is important to note that not all of your property will necessarily be disposed of through a will or trust.  Many people have property that is transferred upon death through a beneficiary designation (for example, many retirement assets), or through rights of survivorship (for example, some real estate).  It is important to coordinate these types of asset into your overall estate plan, to ensure that your wishes are carried out.

The probate process is a legal process by which the probate court determines what is to be done with a deceased person's assets.  Different procedures are followed depending on whether a person died with or without a will, and depending on the amount of assets in the person's name at the time of death.  Our attorneys can also help you with issues that arise when a family member or friend passes away.