Inheritance & Estate Law in Michigan
- In 2000, the Estates and Protected Individuals Code became effective in Michigan. This statute is codified in chapter 700 of the Michigan Compiled Laws. Residents of Michigan must use the relevant provisions in EPIC when creating an estate plan. Sections 2101 through 2114 detail how property is to be distributed if a person dies without a will. This process is known as "intestate succession." Sections 2501 through 2519 describe the legal requirements for a will in Michigan. EPIC makes certain allowances for a decedent's surviving spouse and children, which may affect a decedent's desires with regard to how property is distributed under a will. These exempt property and allowances are described in sections 2401 through 2405.
- If a person dies without a will, the surviving spouse is entitled to a certain amount of the estate. Specifically, EPIC gives the entire estate to the surviving spouse if "no descendant or parent of the decedent survives the decedent." The rules vary if the decedent and the spouse had children. If there are mutual children, the surviving spouse receives the first $150,000 of the estate plus half of the remaining balance. If the decedent had children from a prior marriage and no mutual children with the surviving spouse, the share is the first $100,000 plus half the balance of the estate. If there are no children and the decedent's parents are living, the surviving spouse receives the first $150,000 plus three-fourths of the estate. The remainder of the estate passes to the decedent's family members such as parents and children.
For example, assume Frank died and his estate was worth $500,000. He is survived by Ellen, his wife; Stella, his mother; and Joe, his brother. Ellen gets $150,000 plus $262,000 (representing three-fourths of the remaining estate). The remainder is distributed among his mother and brother. - A valid will in Michigan must be written and signed by the decedent and witnessed by two people. Michigan allows for holographic wills which must be in the decedent's handwriting, dated and signed by the decedent; they do not have to be witnessed. No special language is required in the will and, in general, the testator (the person writing the will) can give property to whomever he pleases. However, EPIC provides for certain exemptions.
- Michigan's inheritance and estate laws allows the surviving spouse to take certain exemptions and allowances against the estate regardless of the provisions in the decedent's will. Under EPIC, the exemptions and allowances have priority over all claims except administrative costs and expenses for the funeral and burial. EPIC allows for a homestead allowance of $15,000 to protect the family home, a family allowance of $18,000 to help pay for expenses and a property exemption of $10,000 to help furnish the surviving spouse. If a decedent died leaving $10,000, everything would go to the surviving spouse under one of the allowances. If a decedent died leaving $100,000, the surviving spouse could take $43,000, leaving the rest to be distributed according to the terms of the will.
