Living Trust Vs Will Michigan

How does a living trust stack up against a will.

Living trust vs will michigan. Living trusts are a popular choice because unlike with a will the assets in the trust do not have to go through probate. Trustees with fiduciary duty manage trusts according to the beneficiary s best interests. A living trust can help you avoid probate in michigan but a will cannot. Here are some key differences.

It is called a living trust because it is created and takes effect during the maker s lifetime in contrast to a will which does not take effect until after the death. Michigan uses the uniform probate code which simplifies the probate process so making a living trust may be more trouble than it saves. A living trust is not a public document like a will. A trust allows the settlor to dictator how and when the the assets will be invested distributed to the beneficiaries etc.

Still if you re planning an estate you should know about the michigan estate tax and the michigan inheritance tax estate tax is levied on the estate of the deceased before assets are passed on to heirs. Most living trust transfers take place in the privacy of your attorney s office shortly after a death. A living trust likely won t impact your taxes. A trust is an estate planning instrument that allows the settlor aka the person with the assets to nominate a trustee who will hold the assets for the beneficiaries of the trust.

A trust remains private and does not need court approval and is not made public. Trusts are also much more difficult to contest than wills providing added security that your wishes will be carried out. With a living trust you can be the trustee the manager of the assets and also maintain the power to make any changes you want to the trust. Living trusts and taxes in michigan.

Michigan has a simplified probate process for small estates under 15 000. The contents of your trust remain private because a living trust in michigan avoids probate court. A revocable living trust is created for the purpose of holding ownership to an individual s assets during the person s lifetime and for distributing those assets after death. A michigan living trust provides privacy in a way a will cannot.

A last will and testament and its contents on the other hand are made public only when they enter probate court usually within a few weeks after there has been a passing. Since the trust avoids probate the contents of the transfer stays private. A living trust designates a trustee to manage assets for the beneficiary while the grantor is still alive. A living trust is a private document which does not require any court intervention.

You can move assets in or out of it or even cancel the trust completely.