Using a Divorce Agreement in Intestate or Probate Case in Michigan

Family law encompasses a wide range of legal rights. You must understand that it is not just about divorce. State matters like probate proceedings and divorce concerns may overlap. Can a divorce agreement be used to establish a claim in intestate or probate proceedings? 

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When there is a divorce decision and a will that one of the spouses has executed, this may occur. Some people might wonder if the divorced spouse receives any of the inheritance. Or if the spouse was still included in the estate at this point. The decedent may not have wanted their spouse in their life.

A person’s estate consists whole of their net assets. Real properties, personal property, investments, money, and other assets make up an estate.

“Intestate succession” is a set of default rules. It determines who gets your estate if you die without making arrangements in advance. It declares who inherits your estate if you die. In a way, the State of Michigan has created a default last will and testament on your behalf with these rules.

In tax and estate planning, a deceased individual is referred to as a “decedent.” A person’s possessions become a part of their estate when they die. A formal will outlines the final affairs of a decedent’s estate.

Probate is a formal legal process required in Michigan after a death. The probate will assist a surviving relative in gathering the deceased’s possessions. Pay down any taxes and responsibilities that are still owed. The probate distributes the assets of the deceased to the beneficiaries by the court.

 

What happens to your properties or estate when you die without a will?

This happens very often. Married couples believe their whole wealth goes to their spouse after their death. This is not always the case.  How you divide your estate will depend on how many living descendants you have. The number of live descendants and living parents you have will determine how much goes to your wife. Michigan’s intestacy rule defines the division.

Your spouse will receive the first $150,000 of your intestate estate and 3/4 of the rest. This is if you have a surviving parent but no descendants. The balance will go to your parent or parents.

Your spouse will receive the first $150.000 of the intestate property and half of the remaining amount if you have at least one common descendant between you (child, grandchild, etc.). The rest of the intestate estate will go to your heirs.

If you die leaving at least one descendant but no common descendant with your living spouse. Your spouse gets the first $100,000 of the intestate property and half of the remaining amount.  The balance of the intestate estate will go to your descendants.

Your spouse inherits your whole estate if you don’t have any living descendants or parents.

The amount of $150,000 and $100,000 change yearly to reflect the cost of living. The sums cited in this article are calculated using figures from 2000 or before. The Department of Treasury releases annual cost-of-living adjustments. The amounts listed above have been modified as a result.

 

What happens to the estate when a spouse dies in the process of divorce?

A devastating occurrence that often catches people off guard is the death of a spouse. Remember that there are many legal concerns that need to be resolved during a divorce. The passing of one spouse is one of these concerns.

If a spouse dies while the divorce is still pending, it will not be finalized. This is true regardless of whether you have agreed to any of the conditions of your divorce. Marriage is a contract. Rescinding a contract like divorce needs the consent of both contracting parties. There is no way to proceed in the event that one party passes away.

The surviving spouse can take ownership of their communal property. This is if your spouse passes away during the divorce process. There are a few exceptions to this rule in property succession. If your spouse specified someone else in the will. The assets will go to that individual instead of you. 

Any marital debts incurred during the marriage are now your personal responsibility. This includes mortgages, vehicle loans, student loans, and credit card debt.

These debts still belong to your deceased spouse’s estate. You must settle these debts before asset distribution. You cannot ignore them. The only exception is if your prenuptial agreement specifies something else.

 

Can a divorce agreement be used to make claims during intestate or probate proceedings?

A divorce nullifies the provision of a will. You cannot use your divorce agreement for claims in intestate or probate proceedings.

Even if you neglected to change the direct beneficiary information on your accounts. Your ex-spouse is not entitled to receive those funds after your death. Unless your divorce decree state something different. For example, you indicated in your divorce agreement certain benefits. You indicated your ex-spouse will still be a beneficiary. A beneficiary of your retirement account or your life insurance plan.

Michigan Compiled Laws have something to say about gifts in wills after divorce. After divorce, any gift made to an ex-spouse in an otherwise valid will becomes null and invalid. In other words, the provisions of your will that leave gifts to your ex-spouse will be invalid. 

To reflect your new intentions, it is safer to update your will after getting divorced. This area of the law can be rather complex.

When a married person dies leaving no will, the law makes provisions for the surviving spouse. The law presumes that if a spouse executed a will, the decedent would have included their spouse in it. The law also makes the assumption about divorced spouses. The law presumes a spouse doesn’t want to support their ex-spouse after passing away.

It’s crucial to continue updating your will or estate plan as your life changes after you’ve put one in place. Without making the necessary changes, you risk leaving a loved one with no safety nets, if you divorce, remarry, or have children. Discuss your goals with a knowledgeable attorney. Michigan law has the potential to frustrate your intentions.

After a divorce, update your estate plan. Make a list of your financial possessions. Part of your estate plan should be to make the proper beneficiary changes in documents. This is to safeguard your new family from any potential claims from an ex-spouse.

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Goldman & Associates Law Firm is here to with information about Child Custody and Divorce in the State of Michigan.

 

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