“How Long does a Michigan Probate take to complete?”  Many of our clients ask how long the process will take.  Just like the good lawyer I am, I answer “it depends.”  What I do know is that at the very earliest the process will take at least 5 months after appointment of a persona representative.

There is quite a bit going on during those 5 months, which is the earliest not the average time of a Michigan probate of an estate.  In that time a personal representative is appointed, notice is sent to interested parties, claims period runs with newspaper publication, etc.

One of the reasons many of our clients opt for a living trust based Michigan estate plan is to avoid the Michigan probate system.  Our clients do not want to be involved in the lengthy, time consuming Michigan probate system.

-Christopher J. Berry, Esq.
Michigan Probate Lawyer | Michigan Estates Lawyer

Estate Planning Strategies: Collective Wisdom, Proven Techniques, the book I have been working hard on has been published and is available on Amazon.  Estate Planning Strategies: Collective Wisdom, Proven Techniques was co-authored by my colleagues and I, estate planning lawyers across the nation.

In this new book Estate Planning Strategies: Collective Wisdom, Proven Techniques we, estate planning attorneys, have outlined essential estate planning strategies for everyone, no matter level of wealth, in easy-to-understand language, Estate Planning Strategies: Collective Wisdom, Proven Techniques helps people comprehend the entire estate planning process from start to finish.

Estate Planning Strategies: Collective Wisdom, Proven Techniques is a great reference book for all professionals. The chapter I wrote on Testamentary capacity is particularly important since it is so frequently misunderstood.

Estate Planning Strategies: Collective Wisdom, Proven Techniques explains:

• Introduction to Estate Planning
• How to Avoid Probate
• Estate Planning for Business Owners
• Property Ownership
• Estate Planning Documents and Drafting Issues
• Avoiding Probate and What Happens after you Die
• Estate Tax Principles
• Avoiding Estate Tax With Lifetime Transfers
• Charitable Trusts
• Revocable Living Trusts
• Life Insurance
• Retirement Plans
• Business and Investment Interests
• Asset Protection
• Other Considerations in Estate Planning including Elder Law, Bert Trusts, Pet Trusts, etc.

-Christopher J. Berry, Esq.
Michigan Estate Planning Lawyer

Many of our Michigan estate planning clients are concerned about the Federal Estate Tax or “death tax”.  This is especially important for small business owners, as the estate tax can cause small business owners to sell their business due to the cash needs in an estate.  The following is a year by year account of how the Federal Estate Tax has changed over the years.

• 1797- First Federal Estate Tax enacted to help fund naval build up.
• 1802- Federal Estate Tax is repealed.
• 1862-Federal Estate Tax reenacted to help pay for Civil War.
• 1870- Federal Estate Tax repealed.
• 1898- Federal Estate Tax reenacted to pay for Spanish-American War.
• 1902- Federal Estate Tax repealed.
• 1916- Federal Estate Tax reenacted with a 10% tax rate.
• 1941- Federal Estate Tax maximum tax rate increased to 77% to help fund World War II.
• 1976- Carryover basis rule enacted.
• 1980- Carryover basis rule repealed.
• 1981- Increased Marital Deduction and Unified Credit.
• 1993- Federal Estate Tax maximum rate increased to 55%.
• 1997- Phase-in of the $1 Million Exemption for farmers and business owners.
• Between 1981-199- 126 New estate tax laws enacted, an average of 7 per year.
• 2001- Phase out of Federal Estate Tax and Generation Skipping Tax, with modified Carryover basis rules, effective in 2010.

The moral of the story?  The laws are constantly changing.  They are going to change again this year, in 2009.  Will we freeze the current $3.5 Million exemption?

-Christopher J. Berry, Esq.
Michigan Estate Planning Lawyer

As a Michigan estate planning lawyer it seems like a couple times a month  I run into the issue where a parent has named a child on their deed to their property so that the parent creates a joint tenancy with rights of survivorship.  More often than not this leads to problems down the line.  People think this is effective Michigan estate planning, but it often just leads to a messy administration.

Let’s look at a hypothetical, a husband named his second spouse and daughter (the wife’s step daughter) as joint tenants with rights of survivorship.  Well now the husband has passed away, leaving the surviving wife and her step daughter who she doesn’t speak to as joint owners.  If the surviving wife wished to sell the property, she would have to get the step daughter’s permission since she is a joint owner.  Maybe that was the husband’s wishes, maybe not.  We don’t really know.

So, some problems of joint tenancy with rights of survivorship in Michigan are:

• Once you place property into joint tenancy, you cannot change your mind.  You can only make changes if you can negotiate or persuade the other joint tenants to follow your wishes.
• You no longer control the whole property.  The other joint owners now have as much legal right to the property as you do.
• Anyone you are on a deed with jointly opens you up to the claims of their creditors.

Joint tenancy is fraught with issues, and as a Michigan estate planning lawyer, I see too many people using it as their “estate plan” when they do not understand the ramifications.

-Christopher J. Berry, Esq.
Michigan Estate Planning Lawyer

The Michigan Court of Appeals heard an interesting case as it relates to Michigan Probate and Michigan Estate Planning.  As a Michigan probate lawyer, it is important to stay on top of the latest case decisions.

In Tkachik V. Mandeville decided Feb 5, the Michigan Court of Appeals decided that even though a husband and wife had been separated for 18 months, the title of the property, which was held in tenancies by the entireties, remains intact.  Therefore, the property passes to the surviving spouse.

The court rejected the plaintiff’s argument that a decedent’s spouse’s estate can sue the surviving spouse for contribution for expenses made related to the entireties property based theory of unjust enrichment.

In other words, the court reinforced, that how your assets are titled controls.  It is important to review titling of your assets, such as house, bank accounts, IRA’s with your Michigan estate planning lawyer, otherwise there could be unintended consequences.

-Christopher J. Berry, Esq.
Oakland County Probate Lawyer

Suze Orman has a number of financial and estate planning books and kits on the market, including the Suze Orman Living Trust Kit.  Many estate planning lawyers and financial professionals have came out against her generalized advice.  Well, count James Scurlock as another that recognizes the ills of Suze Orman’s advice.

In his post which you can read in it’s entirety here.  Mr. Scurlock goes on:

“Suze, my friends, has been lying to us, and we know she knows she’s been lying because she herself tells us that she ignores her own advice.“

As a Michigan estate planning lawyer, I am worried when people follow her advice, which at best is too generalized for clients, and at worst would be legal malpractice if I told my clients what she advises.

-Christopher J. Berry, Esq.
Michigan Estate Planning Lawye

The next celebrity estate plan we will look at is Benjamin Franklin.  Big Ben had a Will and provided for numerous gifts.  However, Benjamin Franklin could not assign his copyrights to things such as Poor Richard’s Almanac.  The reason for this was there were not yet any copyright laws to protect or recognize those rights.

It is interesting that he had revoked many previous WIlls.  Also, in one of the Codicil’s to his Will, he mentioned that he got nothing from his parents and therefore his children should get nothing from him.  He, instead, made some charitable gifts.

As a Michigan estate planning lawyer, I have seen clients who have had similar estate planning desires, such as leaving a chunk of their estate to their church or the Michigan Humane Society.

You can read Benjamin Franklin’s Will here.

-Christopher J. Berry, Esq.
Bloomfield Hills Lawyer