Where the estate is opened.
See the tax section for the exemption or the repeal.
Living trust or probate
A revocable living trust holds assets you title in the trustee's name. You can serve as trustee while you are able.
At death, the successor trustee handles those assets. Property you leave in your own name can still go through the probate court. A pour-over will sends leftover assets into the trust, and those leftover assets may pass through probate first.
The probate path
In Michigan, the estate is opened in the Probate Court.
MCL 700.1302 gives the court exclusive legal and equitable jurisdiction of a matter that relates to the settlement of a deceased individual's estate, whether testate or intestate, when the decedent was domiciled in the county or was domiciled out of state and left an estate in the county to be administered. That jurisdiction includes estate administration, settlement, and distribution, construction of a will, and determination of heirs. MCL 700.1303 refers to that court as the probate court.
Source: MCL 700.1302, Exclusive subject matter jurisdiction
Fees
In Michigan, probate compensation is a statutory commission.
MCL 700.3719 states: "A personal representative is entitled to reasonable compensation for services performed." A personal representative may pay that compensation periodically as earned without prior court approval. MCL 700.3721 allows the court to review the reasonableness of compensation of a person employed by the personal representative, including an attorney, and of the personal representative's own compensation. The statute states reasonable compensation and does not set a percentage schedule.
Source: MCL 700.3719, Compensation of personal representative
Small estate
Michigan has a small-estate procedure. The statute states who can use it.
MCL 700.3983 allows collection of tangible personal property, or an instrument evidencing a debt, obligation, stock, or chose in action, by sworn statement 28 days after death. The sworn statement must say the estate does not include real property and that the value of the entire estate, wherever located, net of liens and encumbrances, does not exceed $50,000.00, adjusted as provided in section 1210. MCL 700.3982 separately allows a court order distributing a small estate when the balance of the gross estate is property of the value of $50,000.00 or less, with the same style of adjustment referenced on the State Court Administrative Office form. No official page opened here states the current cost-of-living adjusted dollar amount.
Source: MCL 700.3983, Collection of personal property by sworn statement
Estate or inheritance tax
Michigan's estate tax on the page linked below is tied to a federal credit.
MCL 205.232 imposes a tax on the transfer of the estate of a Michigan resident equal to the maximum allowable federal credit for estate, inheritance, legacy, and succession taxes paid to the states. The Michigan Department of Treasury states that the inheritance tax is still in effect only for individuals who inherited from a person who died on or before September 30, 1993.
Source: MCL 205.232, Tax on transfer of estate of residents and nonresidents
Questions
The answers use the same statute and court pages as the sections above.
Does a living trust avoid probate in Michigan?
A revocable living trust holds the assets you title in the trustee's name. The successor trustee handles those assets. Property still titled in your own name can be a probate matter. A pour-over will can send leftover assets into the trust, and those leftover assets may still pass through probate first.
What is the small-estate procedure in Michigan?
MCL 700.3983 allows collection of tangible personal property, or an instrument evidencing a debt, obligation, stock, or chose in action, by sworn statement 28 days after death. The sworn statement must say the estate does not include real property and that the value of the entire estate, wherever located, net of liens and encumbrances, does not exceed $50,000.00, adjusted as provided in section 1210. MCL 700.3982 separately allows a court order distributing a small estate when the balance of the gross estate is property of the value of $50,000.00 or less, with the same style of adjustment referenced on the State Court Administrative Office form. No official page opened here states the current cost-of-living adjusted dollar amount.
How are probate fees set in Michigan?
MCL 700.3719 states: "A personal representative is entitled to reasonable compensation for services performed." A personal representative may pay that compensation periodically as earned without prior court approval. MCL 700.3721 allows the court to review the reasonableness of compensation of a person employed by the personal representative, including an attorney, and of the personal representative's own compensation. The statute states reasonable compensation and does not set a percentage schedule.
Does Michigan tax an estate or an inheritance?
MCL 205.232 imposes a tax on the transfer of the estate of a Michigan resident equal to the maximum allowable federal credit for estate, inheritance, legacy, and succession taxes paid to the states. The Michigan Department of Treasury states that the inheritance tax is still in effect only for individuals who inherited from a person who died on or before September 30, 1993.
Sources
These are the statute and court pages used above.