New Michigan Laws to Modernize Probate Code

In a move to ease financial burdens on grieving families, Michigan Governor Gretchen Whitmer has signed a series of bipartisan bills to simplify the process of transferring assets like vehicles and watercraft outside of probate court. This new legislation aligns asset transfer values with the current cost of living, reducing the need for probate court intervention and helping families save on costs. In this article, we take a closer look at these new laws and their impact on Michigan probate.

What is Probate? 

Probate is the legal process of administering an estate through the courts, paying off any debts, and distributing inheritances to the heirs. These court proceedings are required for anyone who passes away with probate assets, meaning any property that does not have a transfer of ownership in place when the owner passes. With larger types of property like homes or high-value assets, family members may need to file in probate court to manage their deceased relative’s property and distribute it to the family.

What are the New Laws?

The legislation includes House Bills 4416, 4417, 4418, and 4419. Sponsored by Rep. Graham Filler and Kelly Breen, these bills raise the maximum asset values that can be transferred without oversight from the county probate court, reflecting today's economic reality. Representative Filler noted, “These updates modernize Michigan’s probate code, making it fairer and easier for residents to understand.” 

Under the new House Bills, the surviving spouse or child of a deceased person can directly inherit tangible property up to a $50,000 value without a full probate court proceeding. Additionally, an adult relative of a minor or incapacitated person can inherit up to $25,000 on their behalf without needing a conservatorship in place first. This allows families to handle their loved one’s property correctly while foregoing the significant expenses of opening an estate in probate court. Each probate situation is unique, so it’s important to consult with an attorney to understand if you will qualify under these new thresholds. The full text of these bills can be found on the Michigan Legislature's website here.

"These bills make it easier for families to inherit vehicles or watercraft without additional expenses,” said Governor Whitmer. “This is part of our continued effort to lower costs for Michiganders with common-sense measures that save time and money.”  Each bill earned unanimous support in the House and Senate before being signed into law.

Do I Still Need a Probate Bond?

Probate bonds provide a financial guarantee to all interested parties in the estate by ensuring that the administrator or executor will fulfill their fiduciary duty faithfully. When petitioning to open an estate in probate court, the administrator or executor may be required to obtain a probate bond before they have the authority to manage the estate. A probate bond can be required for many reasons, but as a good rule of thumb, you should expect to purchase a probate bond if the estate is worth a higher value (i.e. $50,000+).

Michigan probate judges will issue a court order if they determine one is necessary, and any person with an interest of over $30,000 in the estate can demand the court to require a bond for any personal representative over an estate. Call our probate experts at (855) 470-0877 for assistance.

How Do I Obtain a Probate Bond?

Going through the probate process? Don’t fret. We are experts in probate bonds and have expedited the bonding process to make obtaining probate bonds easy and efficient. Click below to get your bond today. Have any questions? Give us a call at (855) 470-0877 to speak to one of our probate bond experts.

The information provided on this blog is for general informational purposes only. It is not intended to be legal advice and should not be construed as such. Consult with a qualified legal professional if you are seeking assistance with a probate or estate matter.