Detailed Answer
Under Michigan law, determining what assets remain in an estate (the “residuary estate”) after paying debts and fees requires several steps:
- Inventory and Appraisal: Within 91 days after appointment of a personal representative, you must file an inventory and appraisal of all estate assets according to MCL 700.3772. This list typically includes real property, bank accounts, investments, personal property, and intangible assets.
- Identify Debts and Administrative Expenses: Under the Michigan Estates and Protected Individuals Code (EPIC), Part 3, you must pay administration costs, funeral expenses, taxes, and creditor claims. Claims are paid in the statutory order in MCL 700.3614:
- Expenses of administration (filing fees, attorney fees, appraiser fees).
- Funeral, burial, and death expenses.
- Reasonable and necessary medical expenses of last illness.
- Family allowances and homestead allowances.
- All other claims, including secured and unsecured creditor claims.
- Payment of Claims: After notice to creditors, you must pay or settle valid claims before distributing assets to beneficiaries.
- Calculate Remaining Assets: Subtract total debts and fees from the gross value of estate assets. The balance is the residue available for distribution to heirs or beneficiaries under the will or by Michigan’s intestacy laws.
Always keep detailed records and court approvals for each payment. The personal representative has a fiduciary duty to the estate and its beneficiaries.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Helpful Hints
- Maintain a clear asset list with appraisals.
- Notify known creditors and publish notice to unknown creditors in a local newspaper.
- Retain receipts and court orders for all payments.
- Review priority of claims in MCL 700.3614 to avoid disputes.
- Consult a probate attorney if you encounter complex assets or creditor challenges.