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Put Your Trust in Our Trust Protect Yourself and Your Loved Ones’ Pockets
When a family member undergoes a severe accident or faces an illness, the resulting medical expenses and accompanying credit card charges can accumulate rapidly. For individuals with limited income, settling these debts can be challenging. As their health deteriorates, the financial burden escalates, often leaving behind unpaid medical and related bills. Medical bills and credit card debt fall under unsecured debts acquired without collateral. Therefore, the obligation to settle unsecured medical debts lies solely with the individual receiving treatment. Consequently, if a person passes away leaving such unpaid debts, their surviving family members are not legally obligated to cover them unless they were joint account holders. In cases where the deceased leaves behind credit card debts, the responsibility falls on any joint account holders, such as a spouse. Even though family members may not be obliged to settle their debts, they can still be affected by them. Michigan law allows creditors to file claims against the deceased’s estate for a specified period. The estate’s representative must notify known creditors and issue a general notification to enable creditors to make claims against the estate. Any valid debts must be settled from the decedent’s estate before the remaining assets can be distributed to the beneficiaries. If the debts surpass the estate’s value, heirs may not receive an inheritance, although they may be entitled to specific allowances that take priority over other creditors. Fortunately, strategies for estate planning can safeguard assets from creditors and bypass probate. Legal instruments such as trusts can shield valuable property from the probate process, ensuring its direct transfer to beneficiaries. Additionally, designating beneficiaries for retirement accounts and life insurance proceeds can provide a straightforward path for asset distribution outside of probate and out of the reach of creditors.
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Helpful Resources • Is your estate plan up to date? Ask us about our FREE Estate Planning Checkup. Call our office or email Julie@mtolaw.com. • Don’t miss Glenn on “Senior Law Radio,” WHMI FM 93.5 every Sunday at 8 a.m. You can also listen live (or to previous shows) on WHMI.com. • Questions about your money? Do you need help with your financial goals, investment management, or retirement planning? Glenn has partnered with his personal financial advisor, Brad Jerome, to bring expert financial services to our clients. Brad meets with you right in our office — no cost, no obligation, and no pressure — just an opportunity to discuss your goals with a top-notch financial advisor to see where your path might lead. You can reach Brad directly at 517.301.3070. • Let us be your trusted advisor for all your legal matters. We’ve grown with the referrals we receive from our clients. We want to return the favor by helping you find a great attorney outside of estate planning, elder law, and probate. Our clients often call us in need of an attorney who focuses on personal injury, auto accidents, elder and nursing home abuse, workers’ compensation, Social Security disability, and many other areas. To get the best results, you need an experienced attorney to help. If you want a referral, call our office or email Julie@mtolaw.com. We are glad to help!
By engaging in proactive estate planning, individuals can safeguard their assets and the interests of their loved ones. Our team has extensive experience helping clients plan for the future and navigate these complex matters. If you require assistance, please don’t hesitate to contact us!
MichiganEstatePlans.com • 888.487.6150
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