Detailed Answer
In Michigan, bringing real property into a probate estate ensures creditors can be paid when estate assets alone are insufficient. Follow these steps:
- Open the probate estate. File a petition in the probate court of the county where the decedent was domiciled under MCL 700.3101. This appoints a personal representative with authority to manage estate assets.
- Inventory all assets. Within the required time, the personal representative must file an inventory identifying all probate assets and known non-probate transfers, including real property. See MCL 700.2602.
- Petition to include non-probate real property. If the decedent’s real property passed by beneficiary deed, joint tenancy or another non-probate mechanism, the personal representative may seek a court order to include it in the estate to satisfy creditor claims under MCL 700.2702. The court will include only what is necessary to pay valid claims when estate funds are insufficient.
- Provide notice and hold a hearing. Serve notice on all transferees and interested persons under MCL 700.2703. The court schedules a hearing to decide whether to bring the property into the estate.
- Record the court order. If the court orders inclusion, record a certified copy of the order with the county Register of Deeds. Recording vests legal title in the estate, clearing the way for administration.
- Sell or encumber the property. To satisfy claims, the personal representative may sell the property following the procedures in MCL 700.3712–3715. Proceeds are applied to debts in the statutorily prescribed order under MCL 700.2801.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to address your unique situation.
Helpful Hints
- File the probate petition promptly to protect against creditor time bars.
- Maintain accurate records of asset values and notices served.
- Confirm non-probate transfers before seeking court inclusion.
- Coordinate sales or encumbrances with the court to avoid title challenges.
- Review creditor claim deadlines under Michigan law to preserve estate liability.