NBI 2014 Probate Process from Start to Finish - Administering the Estate Effectively
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Transcript of NBI 2014 Probate Process from Start to Finish - Administering the Estate Effectively
THE PROBATE PROCESS FROM START TO FINISH
ADMINISTERING THE ESTATE EFFECTIVELY
HOWARD H. COLLENS, ESQ
JUNE 3, 2014
I. How to Respond to Creditors’ Claims
II. Insolvency
III. Managing the Estate Cash Responsibly
IV. Disclaimers
V. Partial Distributions
How to Respond to Creditors’ Claims
What is a “Claim”?
•Liability of the Decedent
•Funeral, burial and expenses of administration
•Does not include an estate or inheritance tax
Notice to Creditors
•Publish notice of death of decedent
•Requirement to present claim within 4 months
•Form PC 574 Notice to Creditors Decedent Estate
Notice to Known Creditors:
• What is a “known” creditor?
• Liability for failure to provide notice
• Form PC 578 –Notice to Known Creditors
Has The Claim Been Timely Filed?
• Claim that arose prior to decedent’s death
• Secured creditors
• If creditor is not known
• Claimants use Form PC 579 – Statement and Proof of Claim
Disallowance or Allowance of Claim:
• Personal Representative may allow, disallow, partly allow, partly disallow or settle the claim
• Waiver/Consent Form PC 561
• Disallowance of Claim Form PC 580
• Civil action to seek payment
Questions???
Insolvency
Insolvency
•Determine amount due to creditors
•Priority of payment of claim
•Sufficient assets in the estate satisfy the claims?
•Schedule of Distributions and Payment of Claims, Form PC 596
Questions???
Managing the Estate Cash Responsibly
Managing the Estate Cash Responsibly
•Personal Representative will oversee the management and investment of estate property
•Michigan’s Prudent Investor Rule
•Examine language in Last Will and Testament
•Diversify Investments
•Keeping and disposing of assets
Managing Estate Cash Responsibly
•Liquidation of assets
•Invest in best interests of beneficiaries
•Delegating tasks to professionals
Questions???
Disclaimers
Disclaimers
•Disclaimers are an absolute and irrevocable refusal to accept an interest in property and may be:
• A specific asset• An interest in a specific asset• A pecuniary amount• A fractional or percentage share• A limited interest or estate
Disclaimers
Pursuant to MCL 700.2903 (1), disclaimers must meet following
requirements:• In writing• Declares disclaimer• Describes the disclaimed interest• Is signed by disclaimant and;• Is delivered in accordance to MCL 700.2904,
2905 or 2906
Questions???
Partial Distributions
Partial Distributions
…are distributions made by the Personal Representative before the entire estate administration is concluded.
Partial Distributions:
•May be made at any time during administration
•Determine whether partial distributions are in best interest of estate
•Distribute assets and settle claims
•Written distribution proposals to distributees
Making partial distribution to beneficiaries:
• Competent successors
• Convey Intent
• Send copies of proposed distribution check and Form PC 588 – Receipt of Distributive Share, Personal Property to the devisee
Questions???
Thank you!
Howard H. CollensGalloway and Collens, PLLC
26075 Woodward Ave, Suite 200Huntington Woods, Michigan 48070
248.545.2500GallowayCollens.com
[email protected]: @howardcollens