Estate planning essay
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School
Bryant & Stratton College *
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Course
250
Subject
Law
Date
Jan 9, 2024
Type
docx
Pages
3
Uploaded by JusticeSteel12842
Desrae Sears
July 19, 2023
PLEG155
Estate Planning Essay
Estate planning is a crucial process that individuals undertake to ensure the smooth distribution
of their assets and property after their death. In Michigan, estate planning involves the creation
of wills and trusts, which serve as legal documents outlining an individual's wishes for the
disposition of their estate. While there are similarities between estate planning, wills, and trusts,
there are also significant differences.
Both wills and trusts are essential components of estate planning in Michigan. A will is a legal
document that designates how an individual's property should be distributed upon their death. It
allows individuals to name beneficiaries, appoint guardians for minor children, and designate an
executor who will oversee the administration of the estate. On the other hand, a trust is a
fiduciary relationship where one party (the trustee) holds legal title to certain assets on behalf of
another party (the beneficiary). Trusts can be revocable or irrevocable and provide flexibility in
managing assets during an individual's lifetime while ensuring efficient distribution upon their
death.
In Michigan, the Estate and Protected Individuals Code (EPIC) creates a substantive law that
grants individuals the right to create an estate plan, will, or trust. This law recognizes the
importance of personal autonomy in determining how one's estate should be managed and
distributed after death.
The procedural law in Michigan governing wills and trusts is outlined in the Estates and
Protected Individuals Code (EPIC), specifically Part 7: Uniform Probate Code. This code
establishes rules for handling wills and trusts in courts across Michigan. It outlines requirements
for executing valid wills, such as signing by the testator (the person making the will) and two
witnesses who must sign in each other's presence. Additionally, EPIC provides guidelines for
administering trusts, including procedures for appointment and removal of trustees.
An estate plan plays a vital role in ensuring that an individual's wishes regarding their assets and
property are respected after their death. A testament refers to a legal document that expresses an
individual's final intentions regarding the distribution of their estate. The testator is the person
who creates and signs the will, while legal capacity refers to their ability to understand the nature
and consequences of their decisions. Testamentary capacity refers to the mental competency of
the testator at the time of creating the will.
Having a valid will brings several advantages. It allows individuals to have control over how
their assets are distributed and ensures that their loved ones are provided for according to their
wishes. Furthermore, it can help minimize conflicts and potential disputes among family
members or other beneficiaries. On the other hand, not having a will, or dying intestate, can lead
to complications and uncertainties in asset distribution. In such cases, Michigan law determines
who inherits based on statutory rules rather than personal preferences. An administrator is
appointed by the court to handle the administration process when someone dies intestate.
In conclusion, estate planning in Michigan involves creating wills and trusts to ensure a smooth
transfer of assets after an individual's death. The substantive law in Michigan grants individuals
the right to create an estate plan, will, or trust through the Estate and Protected Individuals Code
(EPIC). EPIC also provides procedural guidelines for handling wills and trusts in courts across
Michigan. Understanding these laws and terms such as testament, testator, legal capacity,
testamentary capacity, executor, administrator, testate, intestate, and beneficiary is crucial for
successfully navigating through estate planning processes in Michigan. By engaging in thorough
estate planning, individuals can protect their assets and provide for their loved ones according to
their wishes.
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