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Can't I do my own will? Print E-mail

You can. But you might not want to.

Visit: www.legislature.mi.gov. Follow the search links to the Michigan law (700.2519) that contains the valid form for Michigan residents to use to make out their own Wills. The Michigan statutory Will is a fill-in-the-blank form. Read it. Does it have all the right blanks for you? If it does, you will have a valid Will by filling it out correctly.

A Will goes to the probate court. It tells your beneficiaries and heirs and the probate court what you want done with your estate. Remember that when you die, your estate passes through probate court to be distributed. That takes five months, costs money, and is public. Of course there are many ways to avoid probate.
Read more... [Can't I do my own will?]
 
Both Trust & Will Print E-mail

estate-planning-kent-county-miMY NEIGHBOR HAS A WILL AND A LIVING TRUST

Do I need both?

Wills and Trusts are legal documents which have things in common.  

A Will is a good thing.  After you die your assets, for example your car, real estate, boat, and bank account, are called your “ESTATE”.  Your Estate will pass to beneficiaries you name in your written Will.  If you have no written Will, your Estate must pass according to Michigan law, to your “HEIRS.”  The word “Heirs” has a specific legal meaning.  For example, your spouse is your heir.  Your children are also heirs if your spouse dies before you.  Your spouse and children might all be your heirs in certain circumstances.  (More on who your “heirs” are, in a future column.)

Your Estate must ‘pass through Probate Court’ to get distributed - whether you have a Will or not.  And this is a good thing.  The Probate Court names an Executor to see that your Estate pays your final debts and expenses, then distributes the rest to the beneficiaries you named in your Will or if you had no Will, to your Heirs.  You can in your Will who you want to look after your children or weird Aunt Carmen when you’re gone.  
Read more... [Both Trust & Will]
 
Back to Taxes Print E-mail

Increased Estate Tax

The Estate Tax is coming back!  It was phased out over 10 years, then repealed totally in 2010. But it’ll be back in 2011!   Are you a married couple worth over a million bucks?  Will your spouse have your home, retirement plan, investments and big life insurance bucks when you die?  You need an estate plan to avoid giving your hard-earned money and assets in taxes to the Feds! 

In 2000 there was an exemption from taxation for the first $675,000 of a deceased’s estate.  Everything over the exemption amount was heftily taxed.  That tax slowly died over 10 years.  As of this year there’s no more estate tax at all, so it’s good for your beneficiaries if you die this year.  (Just joking)  But in 2011, the repeal is repealed! …leave it to the Government!  An exemption returns.  It is just the first $1,000,000 of the deceased’s estate.  The balance over $1 million gets taxed - again. And the maximum tax rate is 45%!  Yes, pay 45% of the balance over $1 million!   What’s to be done?
Read more... [Back to Taxes]
 
MORTGAGE COMPANIES HAVE TO TALK TO YOU! Print E-mail

Your Rights During a Foreclosure

Nationwide, mortgage companies are foreclosing like never before.  That’s not news.  But what you may not know is that Michigan has a helping law:  before a mortgage company forecloses a home through the typical advertising process, it must give the homeowner the chance to work out something.    The law forces a face-to-face meeting with the lender or lender’s agent to work on mitigating a homeowner’s losses by avoiding foreclosure altogether with a new, better, maybe lower interest, maybe lower payment, maybe postponed principal payment, loan.  With Michigan’s foreclosure rate in the top 10% according to the Detroit Free Press, it is a welcome law. 

The Michigan legislature made this a mandatory step before a mortgage company forecloses, on July 5, 2009.   The process is 5-Step.  First, the mortgage company must send a Notice to the homeowner by regular mail and also by restricted delivery mail.  The Notice itself has very specific requirements.  Basically, the homeowner gets directions on what to do.  Note that the mortgage company can gets its hand slapped in a foreclosure proceeding if it doesn’t send a compliant Notice.

Second, the mortgage company must publish a second Notice within 7 days of mailing the first Notice.  In Montcalm County look for those published notices in the Greenville Daily News.  In Mecosta County, look in the Pioneer.  In Newaygo County, read the Fremont paper.  I advise my clients to look in the River Valley Shopper as well, but my experience tells me that should be your second choice.   

Third, the homeowner gets 14 days from the date the Notice was mailed to opt into the program by requesting a face-to-face meeting with a housing counselor.  It is the homeowner’s responsibility to contact a housing counselor by calling or visiting the website of the Michigan State Housing Development Authority’s website.  The State Housing Authority and other counselor’s telephone numbers are posted in the mailed Notice, and in the published Notice.   

There’s no reason not to call and request a housing counselor.  Once the call is placed, foreclosure proceedings are not allowed to commence until 90 days after the date the Notice was mailed to the borrower.  This is an excellent way to buy time to plan your next steps.  And, it might result in a better mortgage.

The fourth step is the meeting and ‘Work Out’.  The meeting must be held at a time and place convenient for everybody or in the county where the property is located.  The meeting is the time to work together on whether the homeowner is eligible for a better mortgage modification.  If so, this is the chance to avoid foreclosure under a workable, manageable, new ‘deal.’  And, if the homeowner is not eligible, the 90 period has to elapse before foreclosure proceedings may commence.   This could buy you time to find a co-signer, or a new job, or a roommate!  

The work out process uses a test based on the Federal Home Affordable Modification Plan – which means the mortgage company cannot just make whatever rules it wants.  It has rules to abide by.  Without boring you with the math, the test uses the homeowner’s gross income information and housing-related expenses.  Be prepared to provide that information.

Lastly, if the math works out, the statute says the mortgage could be modified in several ways to benefit the homeowner.  For example, late fees might be eliminated or reduced.  A portion of the unpaid principal could be deferred until sale of the property.  The loan could be extended out as far as 40 years, which would greatly reduce the monthly payments.  The interest rate could drop down to as little as 3% for 5 years, fixed.  There are other good options.  And there is nothing to say you can’t try to persuade the mortgage company to be even more considerate.  After all, it doesn’t want to own a house it can’t sell, so you might be its best bet! 

This is good legislation.  Thanks go to the Governor and both sides of the Legislature.  If you’re a homeowner, this is your chance to save your investment.

Jeanne L. Jerow.  Estate Planning Certificate Holder, Divorce & Family Lawyer.  Howard City. 888-622-8622
Service provided in Montcalm County, Kent County, Lakeview, Big Rapids, Cedar Springs, and Newyago
 
Death Without a Will Print E-mail

What Happens Without a Will?

If you die without a valid Will you are said to die Intestate - a hefty term with hefty consequences. 

You let the government decide if you die without a will.

Your property will be distributed based on a legal scheme devised to provide for an orderly distribution of property.
  • The terms of Intestate distribution plans vary from jurisdiction to jurisdiction and can be very complex.
  • In most instances, the spouse and children of the deceased are the first to share in the Estate.
While the legislative distribution plans are supposed to provide for a fair and orderly distribution of property, they do not take into account your wishes. These plans have been created assuming that family members are the only ones you want to benefit. Without a Will, it is impossible to leave any gifts or property to close friends, in-laws, charities or other organizations.
If you do not have any living blood relatives, the state takes all of your property for itself.

Call Jeanne and schedule an appointment to create your Will - 1-888-622-8622
 


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