Finances are about more than just the numbers -- hope and vision play a large part as well. At Bebout, Potere, Cox & Bennion, P.C., we believe that everybody has an ideal situation in mind for their estate. We believe that the only way to truly understand this personal picture of success is to listen to our clients' stories, goals and wishes.
When it comes to creating an effective estate plan, there are many important strategies to keep in mind. First, it is absolutely essential for you to find the type of estate plan that will suit the needs of your estate and those you love best. Some people find that a will is in their best interests, while others make the decision to create a trust. There are many different types of trusts to choose from and trusts can offer a variety of advantages. For example, if you set up a revocable living trust your estate can avoid the probate process altogether.
Estate plans can give rise to all sorts of difficulties, not only for those who set one up but for their loved ones also. For example, disagreements may surface for a variety of reasons and it is crucial to handle disputes properly. Unfortunately, some people are unable to successfully resolve a dispute when one arises, and this can have a detrimental impact on their relationships with family members and their emotions and finances. Moreover, these disputes sometimes involve siblings, which can be especially difficult due to sibling rivalry, lasting disagreements and other issues.
If you're currently estate planning in Michigan, you may have considered writing your own will. While there is a wide range of resources out there that allow you to do just that, you may want to think twice before setting out on your own. The Balance explains a few of the drawbacks associated with creating your own will.
If you're currently creating an estate plan in Michigan, you may be considering adding a trust. While this is a very helpful estate planning tool, you'll need to choose a trustee that is capable of performing all necessary tasks, some of which may be complex. AARP offers the following advice to people who are in search of the right person to oversee their trust.
Sometimes, people become unable to care for themselves due to a devastating brain injury, dementia, Alzheimer's disease or some other hardship. In other instances, children with special needs may be nearing the age of adulthood and a family may be concerned about their care. Sometimes, special needs trusts are an excellent way to address these concerns and these trusts offer a number of benefits for many people. Our law office knows how challenging it can be for families in Rochester and all over Michigan to work through these issues, but identifying the right option and creating a trust that helps provide for a loved one with special needs can be very relieving.
One of the many decisions people in Michigan need to make when thinking about protecting assets and passing them to heirs is what type of trust they should open. There is a variety of options available including revocable, irrevocable, life insurance and generation-skipping trusts. Another type that some may want to consider is the credit shelter trust. While not for everyone, it does have some benefits that may be a selling factor.
After the death of a loved one or close associate, it can be far too painful to have to focus on technicalities such as will execution, including dealing with Michigan probate court and the practical realities of estate division. When you are already grieving and stretched thin, it is hard to think of dealing with such legal intricacies. Are there ways around probate court, and if so, what is the threshold for skipping the itemization and valuation of the deceased's estate?
While you have taken provisions to plan for the future by establishing a living will or trust, you may have questions concerning your furry friends if your pets happen to survive you. It is entirely natural to wish to see to your beloved pet's care, and to ensure legal provisions exist to mandate that a portion of your estate be set aside to care for your animal companion as you see fit. But are you able to establish a trust under Michigan law to ensure adequate funding for your pet's well-being?
Beneficiaries in Michigan who received an inheritance in 2017 may be facing this tax season with trepidation. Will they owe taxes on what they inherited? In most cases, the answer is no. Michigan does not have an inheritance tax, so receiving assets as a result of a descendant's death does not result in tax liability. However, if inherited property was sold, there may be taxes owed depending on the situation.