Michigan Laws 700.2404 – Exempt property
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Terms Used In Michigan Laws 700.2404
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Child: includes , but is not limited to, an individual entitled to take as a child under this act by intestate succession from the parent whose relationship is involved. See Michigan Laws 700.1103
- Decedent: A deceased person.
- Estate: includes the property of the decedent, trust, or other person whose affairs are subject to this act as the property is originally constituted and as it exists throughout administration. See Michigan Laws 700.1104
- Exempt property: means property of a decedent's estate that is described in section 2404. See Michigan Laws 700.1104
- Family allowance: means the allowance prescribed in section 2403. See Michigan Laws 700.1104
- Homestead allowance: means the allowance prescribed in section 2402. See Michigan Laws 700.1104
- Intestate: Dying without leaving a will.
- 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. See Michigan Laws 700.1106
- Security: includes , but is not limited to, a note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in an oil, gas, or mining title or lease or in payments out of production under such a title or lease, collateral trust certificate, transferable share, voting trust certificate, or interest in a regulated investment company or other entity generally referred to as a mutual fund or, in general, an interest or instrument commonly known as a security, or a certificate of interest or participation for, a temporary or interim certificate, receipt, or certificate of deposit for, or any warrant or right to subscribe to or purchase any of the items listed in this subdivision. See Michigan Laws 700.1107
(1) The decedent‘s surviving spouse is also entitled to household furniture, automobiles, furnishings, appliances, and personal effects from the estate up to a value not to exceed $10,000.00 more than the amount of any security interests to which the property is subject. If there is no surviving spouse, the decedent’s children who are not excluded under subsection (4) are entitled jointly to the same value.
(2) If encumbered assets are selected and the value in excess of security interests, plus that of other exempt property, is less than $10,000.00, or if there is not $10,000.00 worth of exempt property in the estate, the spouse or children who are not excluded under subsection (4) are entitled to other assets of the estate, if any, to the extent necessary to make up the $10,000.00 value. Rights to exempt property and assets needed to make up a deficiency of exempt property have priority over all claims against the estate, except that the right to assets to make up a deficiency of exempt property abates as necessary to permit payment of all of the following in the following order:
(a) Administration costs and expenses.
(b) Reasonable funeral and burial expenses.
(c) Homestead allowance.
(d) Family allowance.
(3) The rights under this section are in addition to a benefit or share passing to the surviving spouse or children by the decedent’s will, unless otherwise provided, by intestate succession, or by elective share. The $10,000.00 amount described in this section must be adjusted as provided in section 1210.
(4) The decedent may exclude 1 or more of the decedent’s children from receiving exempt property or assets to make up a deficiency of exempt property under subsection (1) by either of the following means:
(a) The decedent by will expressly states either of the following:
(i) The child takes nothing.
(ii) The child takes an amount of $10.00 or less from the estate.
(b) The decedent by will expressly states that the child is not to receive exempt property under this section.