Detailed Answer
When a creditor submits a settlement demand against a Michigan estate, the executor must compile comprehensive documentation to verify assets, assess liabilities, and respond accurately. Michigan law under the Estates and Protected Individuals Code (EPIC) governs creditor claims. See MCL 700.3702 (deadline to present claims) and MCL 700.3704 (notice and publication requirements).
Key documents to gather include:
- Letters of Authority: Court-issued letters showing your appointment as executor.
- Decedent’s Death Certificate: Certified copy to prove date of death.
- Original Will and Codicils: Establish estate terms and identify beneficiaries.
- Creditor’s Claim Form or Demand Letter: Ensure you have the exact amount and basis of the claim.
- Estate Inventory and Appraisals: Court-filed inventory (Form MC 345) listing all assets with fair‐market valuations.
- Bank and Investment Statements: Account balances as of date of death and subsequent activity.
- Real Estate Records: Deeds, mortgage statements, tax assessments, and appraisals for real property.
- Vehicle Titles and Registrations: Cars, boats, or other titled personal property owned by the decedent.
- Insurance Policies: Life, health, and property insurance documentation indicating beneficiaries or claims paid.
- Loan Agreements and Promissory Notes: Any outstanding debts owed by or to the decedent.
- Receipts and Expense Logs: Records of funeral, medical, and estate administration expenses.
By assembling these records, the executor can verify the creditor’s claim amount, determine available assets, and identify any statutory defenses or offsets. Under MCL 700.3702, creditors must present valid claims within six months of the later of the decedent’s date of death or personal representative appointment. If a claim is disputed, the executor files an objection in probate court and provides supporting evidence.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on a specific estate matter.
Helpful Hints
- Maintain a central file (digital or physical) labeled by document type and date.
- Open a dedicated estate bank account to segregate funds from personal assets.
- Track every communication with creditors in writing—email or certified mail helps create records.
- Use spreadsheet software to list claims received, dates presented, and response deadlines.
- Retain an appraiser for unique or high‐value assets to support estate valuation.
- Consult a probate attorney early to confirm statutory timelines and procedural requirements.
- Review MCL 700.3702 and 700.3704 on the Michigan Legislature website for exact claim deadlines and notice rules.
- Keep beneficiaries informed about the status of creditor claims to manage expectations.