EXCEPTIONS TO PROBATE

Some persons die owning assets that can be transferred to heirs or others without probate court proceedings and without having a trust. Usually these are exceptional circumstances and involve items of property of very little value.

Yet a person could die owning only motor vehicles valued at less than $60,000 and the ownership can be transferred without proceedings in the probate court. There are several special statutes that make these exceptions. Some are not a part of the new probate code. This article will explain these special exceptions to probate.

Most people own one or more motor vehicles at the time of death. Some are very expensive. A special law found in the Motor Vehicle Code provides for the transfer of motor vehicles to heirs of the decedent owner without probate court involvement.

There are some conditions for this to be done. The most important is that upon the motor vehicle owner’s death, the decedent had no other estate to be probated. That is, if a personal representative will be required to administer other estate assets, this method of transfer of ownership of the motor vehicles cannot be used.

Secondly, the total value of all the vehicles cannot exceed $60,000. Note that it is not the value of a single vehicle. Rather, all motor vehicles titled in the decedent’s name alone are added together to make a maximum of $60,000. If they total more than $60,000, all vehicles must be included in a probate of the estate. MCL 257.236.

The transfer is made at the Secretary of State office where motor vehicle registration and licensing occurs. Proof of death is required and that usually is done with a certified copy of the death certificate. The heir must complete a certification form supplied by the Secretary of State that certifies the applicant is the surviving spouse or heir of the decedent registered owner.

Upon proper petition, the Secretary of State will issue a new certificate of title to the proper person. The vehicles can only be transferred to a surviving spouse and if there is no surviving spouse then to an heir of the owner in the order specified in the Estates and Protected Individual’s Code.

Another interesting law not found in EPIC concerns boats, or watercraft, as the statute so states. This law permits the transfer of one or more watercraft having a total value of $100,000 or less without having probate court proceedings.  MCL 324.80312.

As with motor vehicles, the decedent owner must have died owning no other assets requiring probate. The transfer can be made first to the surviving spouse. If there is none, then next to an heir of the decedent owner in the order specified in EPIC.

The person with the priority to have the ownership of decedent’s watercraft applies for the transfer at the Secretary of State office for motor vehicle transfers. As with motor vehicles, proof of death and of the right to receive the new title is required. The process is essentially the same for both.When a person dies while employed, the decedent’s final paycheck, and sometimes fringe benefits, must be paid to someone. There is a special law providing for this circumstance. MCL 408.480. 

An employer must pay fringe benefits on behalf of a deceased employee according to any written contract, policy, or plan of the employer. An employee can designate the person to whom unpaid wages and fringe benefits are to be paid after the employee’s death.If there is no contract, policy or plan or the decedent employee did not designate a person to receive the unpaid wages and fringe benefits, then the employer is authorized by this law to make the payments without probate court proceedings.

The unpaid wages and fringe benefits are first payable to the surviving spouse. If there is none, then it is paid to decedent’s surviving children. If there are none, it will be paid to decedent’s surviving mother or father. If none, it will be paid to decedent’s surviving sister or brother. If none, then some probate court order will be required.