Detailed Answer — Switching to a small‑estate process in Michigan

Short answer: You cannot rely on North Carolina dollar limits when you are dealing with an estate in Michigan. Michigan uses its own probate rules and thresholds. If an estate in Michigan has run into problems because of family allowances, creditor claims, or because you thought a larger “year’s allowance” applied, the practical steps are: (1) identify the estate’s assets and the relevant Michigan thresholds and priority claims; (2) confirm whether the estate qualifies for a simplified/small‑estate procedure in Michigan; and (3) file the proper paperwork with the probate court (or petition the court to convert or modify the pending probate) so the estate can be administered under the simpler procedure — or obtain court permission to use an affidavit procedure to collect assets without full probate. This article explains these steps, common pitfalls, and practical next steps.

1. Confirm the governing law and the problem you face

If you are handling a Michigan estate, Michigan law controls. References to a “$60,000 year’s allowance” come from another state and do not apply in Michigan. The first thing to do is:

• List all known assets (bank accounts, vehicles, personal property, real estate, life insurance, retirement accounts).
• Identify known liabilities (funeral costs, taxes, mortgages, medical bills, creditor claims).
• Determine whether anyone has already applied for appointment as personal representative (executor) or claimed a family allowance.

2. Understand Michigan’s simplified / small‑estate options (overview)

Michigan provides simplified or informal procedures in some low‑value situations so heirs can collect personal property without full formal probate. Those procedures and the exact filing documents/thresholds are set by Michigan law and by local probate courts. Key points:

• Small‑estate or affidavit procedures typically allow the transfer or collection of certain personal property (bank accounts, vehicle title, household goods) without opening a full formal probate case when the estate value is under a statutory limit and no formal personal representative is required.
• If a formal probate case is already open, you generally must ask the probate court to allow conversion to a summary procedure or to authorize use of an affidavit to release assets. The court has the authority to grant or deny that request based on protection of creditors and rightful claimants.
• Family allowance, exempt property, and funeral expenses often have priority ahead of general creditors. If someone has already claimed a family allowance, that claim may reduce the amount available to use the simplified process; you may need a court order resolving competing claims.

3. Practical step‑by‑step process

1. Talk to the probate clerk immediately: Contact the probate court where the decedent lived. Ask whether a probate estate is open and which simplified collection forms or small‑estate affidavit forms the court accepts. The clerk can describe local procedures and required forms.
2. Calculate net personal property available for simple collection: Exclude items that require formal probate (real estate generally requires probate title transfer unless owned jointly). Determine whether the remaining personal property falls within the court’s small‑estate threshold.
3. If no probate is open: Consider using the small‑estate affidavit or collection affidavit (if the estate qualifies). This affidavit is typically signed by an heir and presented to banks or other holders of property. The affidavit usually requires information about the decedent, a statement of estate value (under the threshold), and a statement that no personal representative has been appointed.
4. If probate is already open: You will usually need to return to the court to ask the judge to permit summary administration or to enter an order allowing assets to be paid out via affidavit. File a motion or petition describing the value of estate property, priority claims, and why the simplified route is fair and will not harm creditors or other claimants.
5. Resolve family allowance claims or other priority claims: If a family allowance or similar claim has already been asserted, you may need the court to adjudicate that claim before the estate can be closed or converted. The court can allocate available funds and determine whether there is anything eligible for small‑estate disposition.
6. Serve notice or obtain releases if required: Some affidavit procedures require that certain creditors be given notice, or that the collector obtain releases from other heirs or claimants. Follow the court’s required notice procedures so a bank or title company will accept the affidavit.
7. Follow up with institutions: Banks, vehicle registries, and other holders will have their own procedures to accept an affidavit or court order. Provide the probate court’s order or properly completed affidavit and any identification the institution requires.

4. Hypothetical example (illustrative)

Maria is the heir to a Michigan decedent whose estate consists of $15,000 in a bank account, a car worth $4,000, and household goods. No probate has been opened. Maria learns that a relative is claiming a family allowance. She should:

• Call the local probate clerk and confirm whether the estate qualifies for a small‑estate affidavit procedure under local practice.
• If eligible, complete the affidavit form, give any required notice, and present the affidavit to the bank to collect the account proceeds and to the Secretary of State for the car title.
• If the family allowance claimant objects, ask the court to resolve the allowance claim; the court can then permit distribution of any remaining assets consistent with the decision.

5. When you must use full probate instead of a small‑estate route

Full formal probate may be required when:

• The estate includes real estate that must be transferred through probate.
• The total probate estate greatly exceeds local small‑estate limits.
• There are active disputes among beneficiaries or unresolved creditor claims that require court supervision.
• A personal representative has already been appointed and is actively administering the estate and paying creditors.

6. Practical risks and how to reduce them

• Do not rely on dollar limits from another state. Verify Michigan’s limits with the probate clerk or a Michigan attorney.
• Keep good records of notices you send and receipts for assets collected under an affidavit or court order.
• If anyone objects, stop distributing disputed assets and return to court — distributing contested assets without court authorization can create personal liability.
• When in doubt, file a short petition asking the probate court to approve a simplified distribution; the cost of a short hearing is often small compared to the risk of personal liability.

Helpful Hints

• Contact the local Michigan probate court clerk first — clerks routinely help people identify whether a small‑estate affidavit or formal probate is required and will provide the correct forms.
• Do not mix up state rules. The $60,000 figure you mentioned is a North Carolina number and does not control Michigan cases.
• Gather originals or certified copies of the death certificate, any wills, account statements, and vehicle titles before you go to the court or bank.
• If a family allowance or other priority claim exists, ask the court to rule on that claim before using simplified procedures to avoid later disputes.
• When you present an affidavit to a bank or agency, bring a court order if one exists; institutions are more likely to accept a court order than an affidavit alone when they face competing claims.
• When an estate is complicated or disputed, consider a short consultation with a Michigan probate attorney — many offer limited‑scope help for a single petition or hearing.
• Use the Michigan Courts website (courts.michigan.gov) or your local probate court’s website to find forms and local instructions.

Where to go next

1) Call the probate court where the decedent lived. 2) Ask whether the estate qualifies for a small‑estate affidavit or if you must file a petition to convert or close the existing probate. 3) If there are contested allowance claims or complex creditors, consider brief legal advice to protect yourself from personal liability.

Disclaimer

This information is educational only and is not legal advice. It does not create an attorney‑client relationship. Probate and estate procedures vary by county and case details matter. For advice tailored to your situation, contact the local probate court or a licensed Michigan attorney.