Detailed Answer
Under Michigan law, estate administration requires locating all assets, inventorying them, notifying and settling debts, and distributing the remaining property to beneficiaries. These tasks fall under the authority and duties of the personal representative as defined by the Michigan Estates and Protected Individuals Code (EPIC).
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1. File Probate Petition and Appoint a Personal Representative
An interested person must file a petition with the circuit court in the county where the decedent resided. The court issues Letters of Authority appointing the personal representative. See MCL 700.3402.
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2. Locate and Secure Estate Assets
Gather financial records, bank statements, safe deposit box inventories, real estate deeds, stock certificates, retirement accounts, and digital assets. Secure physical property and transfer deeds into the estate’s name if necessary. The personal representative has a duty to collect and preserve assets under MCL 700.3701.
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3. File an Inventory with the Court
Within 91 days of appointment, the personal representative must file an inventory listing all estate assets and their values. Real property descriptions and account details must be included. See MCL 700.3807.
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4. Notify Creditors and Review Claims
Publish a notice to creditors in a local newspaper and mail notice to known creditors. Creditors have 4 months from publication to file claims. See MCL 700.3806. Review and approve or disallow claims. For contested claims, follow the compromise procedures in MCL 700.3805.
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5. Pay Debts, Taxes, and Administrative Expenses
Use estate funds to pay valid creditor claims, final medical and funeral bills, administrative expenses, and any estate or inheritance taxes. Keep detailed records and receipts. Statutory distribution rules and summary distribution for small estates appear in MCL 700.3911 and MCL 700.3931.
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6. Distribute Remaining Assets and Close the Estate
After settling debts and expenses, file a final accounting or petition for distribution with the court. The court issues an order approving the final account and authorizing distribution to beneficiaries under the will or Michigan’s intestacy laws. See MCL 700.3931.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney in Michigan for guidance tailored to your situation.
Helpful Hints
- Organize financial and personal records early to streamline asset location.
- Keep copies of all filed documents, notices, and court filings.
- Verify and document all creditor claims before payment.
- Consider hiring a CPA for complex tax filings and valuations.
- Maintain clear communication with beneficiaries throughout the process.