Three Changes to Michigan Law That Make Probate Avoidance Easier

Since taking effect in April of 2000, the Michigan Estates and Protected Individuals Code (EPIC) has governed probate proceedings and strongly influenced the estate planning process. Significant changes to EPIC taking effect in 2024 make probate avoidance an easier estate planning goal for testators to achieve.

The three important changes to the law, briefly explained below, can help Michigan residents concerned about probate complications establish plans that help their beneficiaries bypass probate court. What changes to EPIC facilitate probate avoidance for modern estates?

• Increased small estate threshold — Estates typically contain any property owned solely by the deceased party. Larger estates typically require formal probate court oversight during administration, but small estates are eligible for a streamlined process. The maximum value is now $51,000 after deducting funeral and burial expenses, up from the prior limit of $28,000. 
• Higher vehicle title transfer limits — Many estates include a vehicle owned by the decedent. Their surviving spouse or children may need immediate access to the vehicle, making delays for probate court proceedings inconvenient and potentially costly. An EPIC change has increased to $100,000 the maximum value of a vehicle that beneficiaries and heirs can transfer outside of the probate process. Previously, the maximum value was $60,000. 
• Increased limits for transfers to minors — A conservator is an adult who manages the resources of a minor, such as an inheritance from an estate. Previously, Michigan law required conservator management of any transfers in excess of $5,000 each year. The new rule allows for transfers of up to $50,000 to minors annually without requiring a conservator to manage those resources.

These significant changes to EPIC can help individuals limit probate court involvement with the administration of their estates. Estate plans that reflect current legal standards can maximize what resources can be transferred to beneficiaries or heirs without passing through probate court.

Otlewski & Maloney, P.C. in Rochester Hills offers up-to-date knowledge and years of experience to estate planners throughout Michigan. Schedule an initial consultation to draft or review an estate plan by contacting us online or calling 248-759-5641.