What Are the Duties of an Executor of Estate in Michigan?

Think of an executor in Michigan as the captain of a boat heading across the ocean of probate. Although probate is a court-supervised process of winding up an estate, the court doesn't actually do much of the work. The day-to-day tasks are accomplished by an individual termed an executor, and that person has many items on their to-do list.

Every state has probate courts, and Michigan has a probate court in every county. The particular jurisdiction of these courts is to oversee the handling and winding down of the estates of residents who are deceased. Though the ultimate purpose of probate is to distribute remaining assets to those entitled to inherit, in between the opening of probate and the final distribution lie many miles of potentially rough waters.

The probate process involves far more than collecting and distributing assets. The person who died leaves an estate, but it is usually scattered far and wide, with assets in Michigan and perhaps elsewhere, and outstanding debts and obligations. All of these must be collected, valued, verified and organized before probate can get going.

In addition, there is the question of who gets what part of the estate assets. This depends in large part on whether there is a will and, if so, whether it is valid. If not, there are heirs to locate who will inherit under Michigan's intestate succession laws.

While probate court judges oversee the probate procedure of estates, they don't have the time or staff to be able to do all of the steps themselves for every estate. Rather, an estate has an executor, the person appointed by the court to manage the estate and move it through the probate process.

A person making a will usually selects a trusted friend or family member as their executor, but this isn't final unless and until the court issues them letters testamentary. If the will doesn't name an executor, or if there is no will, the court selects an executor, usually giving preference to a surviving spouse or adult child of the deceased.

Not every Michigan estate must go into probate. Generally, this depends on the property in the estate as well as the value of the estate. The rule is that an estate must be probated in Michigan if, at the time of death, the deceased owned any real estate in their sole name, or owned personal property of more than $24,000.

People often try to avoid probate proceedings because it is time-consuming and involves costs. The primary way this is accomplished is by moving assets into non-probate assets that pass directly to the named beneficiary, such as:

• Real property held in joint tenancy with the right of survivorship.
  
• Bank accounts held in Transfer on Death (TOD) accounts.
  
• Vehicles held in Transfer on Death (TOD) accounts.
  
• Revocable living trusts.
  

It's a hard job but somebody has to do it. The executor, sometimes called a personal representative, is the person that administers the estate of a deceased person after they die.

Essentially, they wind up the decedent's financial affairs, pay the decedent's debts and taxes, and distribute the balance of the estate to the beneficiaries or heirs. Executors are appointed by the court, though they are often nominated in a decedent's will.

What exactly does the executor do? Their first task is to open the probate in court. If there is a will, they submit that will to probate, find the will's witnesses, and confirm its validity. If there is no will, they simply open a probate case and begin to search for the surviving family members who qualify as heirs under Michigan intestate succession statutes.

After starting the probate application in court, executors jump in and attend to the general categories of duties, including:

Once appointed, the executor is given authority by the court over the decedent's assets. They take possession of these assets, but not necessarily physical possession. They locate them and make sure they are secure.

This can involve insuring the assets, changing locks on real property, and/or storing vehicles safely. They also inventory the assets of the assets and figure out their value, sometimes by calling in experts to do appraisals.

The executive must evaluate the debts of the decedent's estate and pay those debts that are found to be valid. Creditors can make a claim against the estate for four months from the published notice of probate.

The executor also is charged with paying from estate funds the expenses of administration of the estate. These can include the decedent's funeral expenses, outstanding medical debts, taxes and attorney's fees. These administrative expenses have statutory priority over other creditors.

An executor in Michigan must prepare an inventory of all of the decedent's assets within six months after they are appointed. They must serve the inventory on all beneficiaries, heirs and creditors.

The inventory lists the decedent's assets and the fair market value of each as of the day of death. It also notes any liens or encumbrances for each item. Both real and personal property are included in an inventory, as well as all of the decedent's debts.

Executors must keep a careful record of all monetary transactions in which they engage for the estate. Generally they are charged with filing a final account with the probate court. This is essentially a balance sheet, a record of all assets and money spent during the administration of the estate.

Even if not mandated by the court, executors usually prepare and file a final account to protect themselves from any issues in the future.

The final job of an executor in Michigan is distributing the estate's remaining assets to the beneficiaries or heirs. If there is a valid last will and testament, the executor distributes assets to those named in it as beneficiaries.

Alternatively, Michigan intestacy statutes control distribution to heirs when there is no will. If there are insufficient assets in the estate to distribute according to the wishes of the decedent, the executor must make equitable choices.