When people are planning for their own death, they often decide to create a will. In this will, they will be able to distribute their assets to whomever they choose. With the creation of a will, people will be able to give their loved ones a clear understanding about how they want their assets to be used after they are gone.
However, Michigan residents should be aware that not all of their assets may be suitable for a will. There are specific rules in place that prohibit certain property from being distributed in a will.
This property includes property that is held in joint tenancy. In these cases, the property transfers to the other person holding the property in joint tenancy, no matter what the will says. Additionally, if property is placed into a living trust, it cannot be distributed in a will.
This property will be used to benefit the beneficiaries of the trust, not those listed in a will. If a person wants to change the property that is delegated to a living trust that must be done through trust documents not a will.
Other property that cannot be transferred in a will includes property that is held in beneficiary of another person. Additionally, property that is subject to certain illegal conditions also cannot be transferred under a will.
Michigan residents need to make sure they understand the complexities that go into making a will. There are many situations where a will can be the right tool for a person. However, other estate planning tools might also be necessary. This blog post can only provide general information about wills and their role in a person's estate plan. An attorney, on the other hand, can give more specific legal advice.
Source: Findlaw, "What Not To Include When Making a Will," accessed Aug. 9, 2015