There are a lot of reasons why a person may die without a will in Michigan. Whether due to an unexpected illness or accident, or simply because you never got around to it, you may not have documented what you want to happen to your property before you pass away. Michigan's intestacy laws are there to fill in any gaps left in your estate plan, but they may not be the answers you were hoping for.
What is a Last Will and Testament?
A Last Will and Testament (often just called a will) is a legal document directing how your property should be divided up after your death. It controls who does or does not receive an inheritance, how much, and from which assets, along with other provisions. A will also names one or more personal representatives (also called executors) to be responsible for liquidating and distributing the estate according to the will's terms.
How Michigan Intestacy Laws Work
If you die without a will in Michigan, the state has a set of statutes, called intestacy laws, that will control what happens to your assets. They apply to any part of a deceased person's estate is not entirely covered by a valid will, because:
- You died without any will at all
- Your family cannot locate your will
- The will is found invalid by the Michigan Probate Court (possibly because it was not properly executed or created under undue influence)
- The will did not provide for all of your property (most often when a will is prepared without an attorney)
Michigan's intestacy laws act like a default will, directing how your final expenses and debts will be paid, and how any remaining property will be divided between your closest legal relatives.
Who Gets Your Property if You Die Without a Will in Michigan?
A will allows you to name whomever you want to inherit property from your estate (more on that later). But if you die without a will in Michigan, your net probate estate will pass to your next of kin:
- Surviving spouse (but not divorced spouses),
- Children (both minors and adults)
- Grandchildren (both minors and adults)
- Parents
- Siblings
- Nieces and nephews
Surviving Spouse's Share
The size of a surviving spouse's intestate share depends on who else is on your family tree. If you die without a will and are survived only by your spouse, he or she will take the entire intestate estate. However, that amount is reduced if you are survived by descendants (children or grandchildren), parents, and especially descendants unrelated to your surviving spouse (such as stepchildren).
Next of Kin's Inheritance
If you are unmarried when you die, or after the spouse's share is accounted for, your remaining assets pass to the following classes of people, in order:
- Your direct descendants (children, grandchildren, and great grandchildren)
- If there are no descendants, your parents
- If there are no descendants or surviving parents, your parents' descendants (your siblings, nieces and nephews)
- If none of the above, your grandparents or their descendants (your maternal and paternal sides each receive half the estate)
For example, imagine you died without a spouse or children, and both your parents and your older brother died before you did. However, your older brother had two children, and your two younger siblings are still alive. Your personal representative would divide your net probate estate into three equal parts, for the number of your parents' children, give one share to each of your surviving siblings, and divide the final third between your brother's two children. Your siblings would each receive 1/3 of your net assets and your niece and nephew will each receive 1/6 of your net assets.
Creditors and Final Expenses
It is important to remember that this applies to the net estate after all your final debts and expenses are paid. Before your next of kin receive anything, your personal representative will need to pay:
- Probate administration costs (including probate estate fees, attorney fees and costs)
- Funeral and burial expenses
- Homestead allowances ($10,000-$15,000 to the spouse or dependents)
- Family allowances (Up to 1 year of reasonable household expenses while the probate estate is pending)
- Exempt property ($10,000 in household furniture, vehicles, furnishings, appliances and personal effects)
- Federal taxes and priority debts
- Medical, hospital, and attendant care expenses for your final illness
- State taxes and priority debts
- Other debts (including credit cards, personal loans, utilities, etc.)
If your net probate estate isn't large enough to pay all the debts on a specific tier, the remaining balance is distributed to the creditors on that level. The allowances and exempt property ensure that those dependent on you for their livelihood aren't left with nothing even if you owe substantial debts when you die.
How Having a Will Helps You and Your Family
There are many ways having a professionally drafted and executed will can help simply the estate administration process and give you control over what happens to your assets after your death.
Identify Assets
The process of drafting and updating a will helps you and your personal representative know what assets exist to be divided. This could include electronic assets (like digital photo albums or cryptocurrency), as well as virtual accounts (like Venmo or PayPal), bank accounts, retirement assets, personal property, vehicles, and real estate. Having an updated list of your assets makes sure nothing gets left out when your personal representative is dividing up your estate.
Name Beneficiaries Other Than Natural Heirs
Michigan's intestacy laws only apply to a person's spouse and legal next of kin. It does not account for stepchildren, other relatives, friends, or fictive kin. The statute also does not allow for carve-outs to exclude a person you don't want to receive a share of your assets. However, in a will, you control who will and will not receive an inheritance.
Legacy Gifts to Charities and Religious Organizations
In addition to individuals, you can include organizations as beneficiaries in your will. This allows you to leave charitable donations to the social or religious organizations that mean the most to you as part of your legacy after your death.
Avoid Liquidating Heirlooms or the Family Home
The division of assets in intestate succession is based on their value, not their quantity or quality. Each person is entitled to a specific dollar amount. Often, the personal representative must liquidate the deceased's estate, selling the marital home, heirlooms, collectibles, and even sentimental items to satisfy the strictly mathematical accounting. However, in a will, you can designate gifts by amount, percentage, specific items, or any other way that a personal representative can easily understand. As long as there are enough liquid assets to satisfy your final debts and expenses, this prevents your property from being sold when that was not your intent.
Don't Get Caught Without a Will. Get Help from a Michigan Estate Planning Attorney Today.
At Bebout, Potere, Cox & Bennion, P.C., we care about you and your family. We help individuals and families in Rochester Hills, Rochester, Troy, Lake Orion, Oxford, Oakland County, Macomb County and throughout Southeast Michigan. We can help you understand what happens if you die without a will and create an estate plan that honors your wishes. Call us at 248-651-4114 or contact us here to speak to an attorney.
