Detailed Answer
As a personal representative (PR) in Michigan, you should take a few clear, document-based steps to confirm (1) the probate case is legally closed and (2) any revocable trust or other trust that should receive estate assets has actually been funded. Below is a practical, step‑by‑step checklist and an explanation of the legal proof to request and retain.
1) Confirm the probate proceeding is concluded
- Obtain the court’s final order or decree. The most reliable proof the probate case is over is a signed court order explicitly closing the estate or approving final distribution. Ask the probate clerk for a certified copy of the closing order or the judge’s order approving the PR’s final account. Retain a certified copy for the estate file.
- Verify the Final Account was approved. In Michigan courts, the PR typically files a final account and report. Look for the court’s stamped order approving that account. If the court approved the account and discharged the PR, that order is primary proof of completion.
- Check the register of actions (docket) for the case. The docket entries will show filings, hearings, the order approving the account, and an entry showing the case is closed. Request a certified copy of the register or download it from the county probate court’s online case access if available.
- Obtain letters and any discharge documentation. If you had Letters Testamentary or Letters of Authority, the court’s closing order or separate discharge order will show whether you have been discharged as PR. A discharge order or a notation in the final order is strong proof you are no longer the estate’s fiduciary.
- Keep creditor and tax clearances if applicable. If the estate required notices to creditors or clearance from the Michigan Department of Treasury (for estate tax or final income tax matters), keep copies indicating those matters are resolved or that the court considered them in approving the final account.
2) Confirm the trust has been properly funded
“Funding” a trust means the trust owns the assets intended for it. Funding methods vary by asset type; confirm each asset was transferred correctly:
- Real property: Check that a new deed transferring title from the estate or decedent to the trustee has been executed, acknowledged, recorded in the county register of deeds, and that the recorded deed lists the trustee as grantee. A certified copy of the recorded deed is clear proof of transfer.
- Bank and brokerage accounts: Confirm either (a) accounts were retitled in the name of the trust (bank/brokerage statements showing the trust name and account number), or (b) the account was closed and proceeds paid to the trustee or to an estate account followed by an authorized distribution to the trust. Obtain account statements or written bank confirmations.
- Securities and retirement benefits: For brokerage securities, confirm the transfer agent or broker shows the trust as owner or that they issued new trust‑named accounts. For retirement accounts or insurance, remember many of these transfer by beneficiary designation—confirm the trustee is the listed beneficiary or that proceeds were paid and then properly transferred into the trust as required.
- Personal property and business interests: Get written assignments, titles, or updated membership/stock ledgers showing the trust as owner.
- Trust records: The trustee should prepare a written schedule of assets owned by the trust after funding. Ask for or require a signed inventory or receipt from the trustee listing each asset received and the date of transfer.
3) When the PR must act or seek the court’s help
- If assets that should have gone to the trust remain in the estate after final distribution, the PR should either (a) transfer them to the trustee before seeking discharge, or (b) seek a court order approving distribution directly to the trustee. Keep court orders and receipts.
- If a third party (bank, title company, company secretary) refuses to transfer an asset to the trustee, the PR or trustee can ask the probate court for instructions or an order requiring transfer. Retain the court order as proof of authority to transfer.
- If there’s a pour‑over will (a will that directs remaining probate assets into a trust), confirm the court’s final distribution specifically directed remaining assets to the trustee and that the trustee accepted them in writing.
4) Documents to collect and keep in the estate file
- Certified copy of the court’s final order closing the estate and approving the final account
- Certified register of actions or case docket showing disposition
- Certified copies of recorded deeds and property title changes
- Bank and brokerage statements showing retitling or transfer into the trust
- Written receipts or acceptance letters from the trustee for transferred assets
- Copies of beneficiary designation forms, assignments, and vehicle/tangible property receipts
- Any court orders authorizing transfers or resolving disputes
5) Legal background and where to look in Michigan law
Michigan’s Estates and Protected Individuals Code (EPIC) governs probate administration, final accounts, and distribution procedures. For statutory language and details on fiduciary duties and final accounting, review the EPIC (Chapter 700) at the Michigan Legislature: Michigan Compiled Laws — Chapter 700 (EPIC). Practical forms and instructions used in probate cases are available from the State Court Administrative Office (SCAO) probate forms page: Michigan SCAO — Probate Forms.
6) When to consult an attorney
If transfers are disputed, if you can’t obtain clear documentation of transfers, if there are unresolved creditor claims, or tax issues that could affect distribution, you should consult a probate attorney. An attorney can (a) request court instructions, (b) obtain orders to compel transfers, and (c) protect a PR from liability for improper distributions.
Helpful Hints
- Ask the probate clerk for certified copies and for the official docket transcript — these are accepted everywhere as proof of what the court ordered.
- Never rely solely on verbal confirmations from banks or title companies. Get written, dated statements or account statements showing the trust as owner.
- For real property, verify the deed is recorded in the correct county and that the legal description on the deed matches the original property description.
- Keep a short, dated funding ledger: each asset, the date transferred, method of transfer, and document reference (recording number, account number, or receipt). This helps avoid later disputes or tax issues.
- If a trust is intended to receive “everything,” remember that some assets (retirement accounts, life insurance) pass by beneficiary designation — verify beneficiary forms and confirm whether the proceeds landed in the trust or were re‑invested into trust property.
- If the probate case has been closed but you later discover unfunded assets, contact the probate court immediately. You may need to reopen or seek relief from the court to protect yourself and correct distributions.
Disclaimer: This article is educational only and does not constitute legal advice. For advice about a specific estate or trust matter in Michigan, consult a licensed Michigan probate attorney.