Completing and filing a probate inventory in Michigan is a crucial responsibility for personal representatives managing a deceased person’s estate. At The Probate Pro, we guide clients through this process daily. Here’s your comprehensive guide to completing this essential task correctly.
What Is a Probate Inventory?
A probate inventory is a detailed listing of all assets owned by the deceased person (the “decedent”) as of the date of death. This document helps establish the estate’s value for probate purposes and serves as a baseline for estate administration.
When Must the Michigan Probate Inventory Be Filed or Presented?
Michigan law requires the personal representative to file or present the Inventory within 91 days issuance of the Letters of Authority. This deadline is strictly enforced, though extensions may be granted for good cause. Mark your calendar as soon as you’re appointed to ensure timely filing. The failure to timely present or file an Inventory can result in the suspension of the personal representative.
Required Forms
The primary form you’ll need is PC 577 – Inventory.
What is Not Included on the Michigan Probate Inventory
- Survivorship assets (jointly held assets) are generally not included on the Inventory
- Pay on Death Assets with a named beneficiary are generally not included on the Inventory
- Assets not owned by the decedent. For example, a leased car is not owned.
- Debts of the decedent – Exception. If real property has been used to secure a loan (including an equity line of credit), show the nature and amount of the lien, and reduce the gross value (value as of date of death) by the amount of the lien, but the inventory value cannot be less than zero.
- Do not provide financial account numbers on this form. If an account number is necessary to distinguish between accounts, use SCAO form MC 97.
Understanding Asset Categories
Subject to certain exceptions, the property of the decedent should be included on the Inventory. MCL 700.1106(x) states “Property” means anything that may be the subject of ownership, and includes both real and personal property or an interest in real or personal property.
The Inventory requires grouping assets into specific categories:
Real Estate
- Include all real property owned by the decedent
- Real property means land, including a building or house that is built on the land
- List complete legal descriptions
- Provide fair market value at date of death (either through an appraisal or two times the state equalized value)
Personal Property
When listing personal property, provide enough detail to adequately determine the value. Some items should be listed separately and some items should be combined under one category. Provide the name and address of each financial institution listed. The address of a financial institution shall be either that of the institution’s main headquarters or the branch used most frequently by the personal representative.
Financial Assets
- Include all personal property owned by the decedent
- Personal property means everything that a person owns except real property
- Bank accounts and checking accounts
- Investment accounts
- Stocks and bonds
- Life insurance (if no beneficiary designation and payable to the estate)
- Retirement accounts (if no beneficiary designation and payable to the estate)
- Vehicles and boats
- Household goods and furnishings.
- Jewelry and collectibles
- Clothing and personal effects
- Farm equipment or business assets
- Outstanding debts owed to the decedent (not to be confused with debts owed by the decedent)
Examples of items that should be listed and valued separately are:
- Automobiles
- Life insurance, if payable to the estate
- Jewelry
Annuities - Bank accounts
- Mutual funds
- Antiques
- Stocks and bonds
- Any other individual item of high value
Examples of items that can be listed in categories are household items such as dishes, flatware, curtains, linens, utensils, clothing, furnishings, etc. These items can be grouped into several categories or combined into one category.
If personal property has been used to secure a loan, show the nature and amount of the lien, but do not deduct the lien amount from the gross value (value as of the date of death) of any item of personal property.
Step-by-Step Completion Guide
- Gather Documentation
Before starting the Inventory, collect all of the assets (including but not limited to):
- Real estate deeds
- Vehicle titles
- all important statements and documents of the decedent
- Determine Date of Death Values
- Real estate appraisals (or two times the state equalized value). If the value of real property is determined by an appraisal, include the appraiser’s name and address and a description of the property appraised.
- Professional valuations for businesses
- Values for vehicles
- Statement values for financial accounts
- Complete the Form
When filling out the Inventory:
- List each asset separately.
- Provide detailed descriptions
- Include accurate values
- Total all categories
4. Sign and date the form
The personal representative signs the Inventory under the penalty of perjury. The following declaration is stated above the signature line. “I declare under the penalties of perjury that this inventory has been examined by me and that its contents are true to the best of my information, knowledge, and belief.”
Common Mistakes to Avoid with a Michigan Probate Inventory
Valuation Errors
- Using current values instead of date of death values
- Estimating without proper documentation
- Including assets not owned at death
- Including joint survivorship assets
- Including pay on death beneficiary assets
Procedural Mistakes
- Missing the filing deadline
- Incomplete asset descriptions
- Failing to serve interested persons pursuant to Michigan court rule
Inventory Fees
Michigan probate courts charge Inventory fees based on the total value of the estate. Understanding these fees is important:
- Calculate based on total asset value
- Pay fees when filing
- Include payment confirmation
Professional Assistance
The complexity of probate administration and Inventory preparation makes working with an experienced probate attorney really important. A qualified probate lawyer can help prevent costly mistakes, ensure compliance with all legal requirements, and protect the personal representative from potential liability. Consider seeking professional help especially if:
- The estate includes complex assets
- You’re unsure about valuations
- Time constraints are challenging
- Legal questions arise
- Family conflicts exist
Conclusion
Completing a Michigan probate Inventory requires attention to detail and proper documentation. While the process may seem daunting, following these guidelines helps ensure accuracy and compliance. Remember, the Inventory serves as the foundation for the entire probate process.
Need Help with Your Michigan Probate Inventory?
The Probate Pro’s experienced team can guide you through the inventory process, ensuring accuracy and compliance with Michigan law. Contact us today at (833) PROBATE to discuss your probate needs and learn how we can assist with your estate administration responsibilities.