Every Friday we post a common legal questions and answer on our social media pages. They range from Estate Planning topics, to family law issues, to business law, and more! Read below to learn more about common legal questions.

What is Estate Planning?

Estate planning is the process of making known how you want your estate handled after you pass away. It is not just for the wealthy. Estate plans include all your property, assets, and belongings. An estate plan will lay out your wishes exactly how you want them and whom you want to be in charge of carrying out those wishes.

What is a landlord tenant checklist?

The State of Michigan requires the use of a Landlord-Tenant Checklist to detail the condition of a rental property when you move in and move out. It would be a good idea for the landlord and the tenant to go through the property and complete this checklist together. All items owned by the landlord should be included on the list. Inspecting the entire property before and after the lease agreement will help prevent disputes that may arise regarding the condition of the rental property.

What consumer fireworks are legal in Michigan?

What is a fiduciary?

A fiduciary is an individual or an organization who is responsible for managing money, property, and assets for another individual. They have an ethical and legal duty to act in the best interest of another person, not their own. Under Michigan Law, a fiduciary includes a personal representative, funeral representative, guardian, conservator, and trustee.

What is not permitted under Michigan law when it comes to marijuana use?

If you are 21 years or older, you are legally allowed to possess and consume marijuana. However, you may NOT:

• Consume marijuana in public places.
• Drive under the influence of marijuana.
• Cross state lines with marijuana.

Michigan is a no fault divorce state…what does that mean?

A divorce will be granted between the parties regardless of who was allegedly at fault. Fault is a factor that may come into play when the specifics of the divorce are being negotiated such as division of property or debt or support considerations.

What is a Durable Power of Attorney?

It is a legal document that designates someone to make certain decisions for you in particular situations. If you no longer can make decisions due to an illness or injury, then a power of attorney has the authority to make financial, healthcare, and legal decisions for you. It is an important part of a comprehensive estate plan and the person you choose must be someone you completely trust.

What is a conservatorship?

A conservatorship is a court order that is put in place when an individual cannot manage his or her financial affairs. This would happen if:

• An adult is incapacitated due to mental or physical illness or disability.
• A minor child has assets that need to be managed.

What are Miranda Rights?

They are the rights a person has when they are being arrested and accused of a crime. They are:

• The right to remain silent.
• Anything they say can be used against them in court.
• They have the right to an attorney.
• If they cannot afford an attorney, one will be provided.

What is a Trust?

A trust is a legal arrangement by which assets are held for someone’s benefit. The person who creates the Trust is called the Grantor, Settlor, or Trustor. The person who holds legal title to the trust assets and carries out the terms of the legal arrangement is the Trustee. A person or entity for who’s benefit the trust assets are held is called a Beneficiary.

What is Michigan Lemon Law?

It is a law that was enacted to protect consumers who have purchased new vehicles that have serious issues that are not resolved or fixed by the manufacturer. The main purpose of the lemon law is to hold the manufacturer liable for selling a faulty vehicle.

What is the difference between a contested and an uncontested divorce?

A contested divorce is one that must be settled in court. This divorce occurs when one of the parties wants to challenge, or contest, one or more of the issues that need to be resolved in the divorce. An uncontested divorce is one in which both parties are in agreement as to how to resolve all of the marital issues. This is settled outside of court.

What is FLMA?

FMLA stands for the Family and Medical Leave Act. It is a federal labor law, generally applicable to employers with 50 or more employees, that allows eligible employees to take up to 12 weeks of unpaid leave a year for qualified family or medical related reasons.

What is an Advance Directive?

“Advance directive” is a term that encompasses a variety of documents that allow you to provide direction about how you want to be cared for, including a DNR order, living will, durable power of attorney for health care or a patient advocate designation.

What is Alimony?

Alimony is when the dependent spouse receives money from the supporting spouse. The dependent spouse typically is the one that makes substantially less money and relies on the supporting spouse financially, and therefore can be entitled to receive money from the supporting spouse. Alimony may be sought after if the dependent spouse chose to forgo a career and raise the children or to maintain the lifestyle and standard of living that was kept throughout the marriage.

What is the difference between a Will and a Trust?

A Will is a legal document that lays out your wishes when it comes to distributing your assets after your death. Its provisions take effect only after the Will is accepted by the probate court after your death. The Will disposes of assets titled in your sole name at your death.

A Trust is a legal arrangement by which assets are held for someone’s benefit. There are many types of Trusts, but the one that applies to most people is a Revocable Living Trust. This type of Trust provides a way to manage your assets while you are living and, like a Will, governs how those assets will be distributed at your death. A Revocable Living Trust does not require court involvement after your death.

You have an estate plan, but how do you know when it’s time to update it?

• Are the Personal Representatives and Trustees you have named in your Will and Trust still appropriate choices?
• Are the provisions for your beneficiaries still appropriate?
• Are the value and nature of your assets generally the same as they were when your estate plan was created?
• Are your choices of decision-makers in. your Durable Powers of Attorney and Patient Advocate Designations still appropriate?
• Do your Durable Powers and Patient Advocate Designations contain a waiver of your HIPAA right to privacy for medical purposes?
• Do you have a separate HIPAA release that allows your loved ones to obtain information about your condition and treatment?
• Are your life insurance, 401k, and IRA beneficiary designations up to date?

Can my spouse and I use one lawyer in a divorce?

In some very limited circumstances, a divorcing couple may use one attorney to facilitate their divorce, however, at no time can one attorney provide legal counsel to both parties of a divorce as it is a conflict of interest for the attorney. In some cases, due to the adversarial nature of a divorce, each party should be represented by their own counsel. To understand what is appropriate in any given situation, a person seeking divorce by using one attorney should consult with an experienced family attorney.

What is a patient advocate designation and why do I need one?

A patient advocate designation is a legal document that gives someone else the authority to make medical care decisions (also includes custody) for you if you cannot make them on your own. The decisions may include a choice to withhold or withdraw treatment. If you do not have one, but at some point in your life you do need one, then the probate court will appoint a guardian to make these medical care decisions for you. So it would be advisable to declare your own patient advocate designation so you can choose exactly who you would like to care for you.

What are the responsibilities of a Trustee?

The main responsibility is to administer the trust. This means they must:

• Manage and distribute the assets and funds to beneficiaries in the manner called for in the Trust Agreement.
• Keep adequate records of the administration of the trust and create an annual report of all assets held in the trust estate, income received, and distributions made.
• Pay any bills that are due.
• Pay off debts.
• Resolve any claims or lawsuits that may arise.
• Notify creditors.
• Value the trust assets, including obtaining appraisals of personal items and real estate.
• Sell trust assets if necessary.
• Pay Federal and State taxes, including property and income tax.

What is a legal guardian?

If you are a court-appointed guardian of an individual, you will be responsible for providing the day to day care for a person, ensuring their personal needs are met, including housing and medical care. There are a few different types of guardianships. They are:

• Full Guardian of a Minor
• Limited Guardian of a Minor
• Guardian of an Incapacitated Individual
• Guardian of Someone who is Developmentally Disabled

What is the difference between an OWI, DUI, OWVI, and an OWPD?

OWI (Operating While Intoxicated)- You can be charged with an OWI if you are driving, and are over 21, with a blood alcohol level of .08 or greater.

DUI (Driving Under the Influence)- This is used interchangeably with an OWI.

OWVI (Operating While Visually Impaired)- You can be charged with an OWVI regardless of your blood alcohol level. If an officer determines you cannot operate your vehicle safely, you can be charged. An OWVI charge also applies when you have consumed too much of a legal prescribed medication.

OWPD (Operating With the Presence of Drugs)- You can be charged if you are under the influence of Schedule 1 drugs or cocaine while driving, regardless of the amount you have consumed.

What is the purpose of a witness when it comes to proper document execution?

The purpose of a witness is to verify the authenticity of a particular document that is being signed. A witness must be:

• At least 18 years of age.
• Not be under the influence of drugs or alcohol.
• Be of sound mind.
• Not have any financial interest in the document that is being signed.

What is a buy-sell agreement?

Buy-sell agreements are contracts between business owners to address various situations under which one or more owners have the option or the obligation to sell their ownership interest, and other owners (or the company) have the option or obligation to purchase that interest. Common triggers of these buy and sell rights include an owner’s death, disability, termination of employment, and receipt of a third party offer to purchase the interest. These are put in place to protect a company’s stability and longevity should a triggering event occur, and to limit disputes that can arise in those circumstances. The agreement would usually address price determination, payment terms, and timing, along with other matters. If one of the business partners dies and there is a buy-sell agreement in place, oftentimes life insurance policies are used to fund the buyout. Buy-sell agreements safeguard the company, stakeholders in the company, employees, and even clients and customers.

Can child support payments be put on pause if you’re spending more time with your kids during the holidays?

You might think that because you are spending more time with your children during the holiday season, or spending more money on them because they are with you, that you would be able to suspend your child support payments. However, that is not the case. The holiday time spent with each parent is already factored into the number of overnights to each parent that provides the basis for calculating the child support. Child support payments are court ordered, so you should continue to make those scheduled payments to avoid contempt of court proceedings.

What happens if you die without a will?

In the event that you die without a will in Michigan, your assets will be distributed to your relatives under Michigan Intestate Succession. This set of laws serves as a default will that instructs how and to whom your assets are distributed.

Do grandparents and other family members have visitation rights over the holidays?

It is common for grandparents and other family members to want to spend time with all their family during the holidays. However, it is ultimately up to the parents’ discretion and the custody agreement that they set with the court. In Michigan, grandparents do not have automatic rights to visit with their grandchildren over the holidays.

What types of penalties could you see if you are charged with a first offense OWI?

In Michigan, you could see the following penalties for a first offense OWI charge if your blood alcohol level is .08 to .17:

• Up to a $500 fine;
• Up to 93 days in jail;
• Up to 360 hours of community service;
• Up to 180 days of license suspension; and/or;
• 6 points on your driver’s license

You could see more severe penalties if your blood alcohol level is over .17, if you have multiple OWI charges, if there are children in the car, or if someone is injured or dies because of your intoxication.

What is a Warranty Deed?

With a warranty deed the seller, also called the grantor, guarantees the property has a clear title and that the grantor has the right to transfer the property. The grantor generally will have a title company conduct a search of the title to find any problems with the title, and will purchase title insurance that guarantees clean title at the time the warranty deed is given. This type of deed protects the buyer or grantee because the buyer will not have to worry about any third-party claims against the property.

How does a Lady Bird Deed work?

In a Lady Bird Deed, an individual (also known as the Grantor) retains ownership of the property for the Grantor’s lifetime, and immediately upon the Grantor’s death, the property is transferred to the designated beneficiaries, known as the Grantees. It is a simplified way to transfer real property. An important benefit to this type of deed is that it will avoid probate. The Grantor of the Lady Bird Deed has the authority to retain full control of the property while living, including the right to use, transfer, and profit from the property. The deed can also be terminated or revoked by the Grantor at any point.

What is a Sole Proprietorship business structure?

This is the most common and straight forward business structure where one person is the owner. This business is not incorporated, which means less government involvement but also less government protection. Generally speaking, the owner pays personal income tax and self-employment tax on the business profits earned. The owner is solely financially liable for the business. Which also means that if the business needs to settle a debt or a legal claim, your personal assets may be at risk. This type of business structure offers simplicity and more control for the individual owner.

What is Nesting?

Nesting is a living arrangement in a divorce that keeps children in their family home while the parents take turns living there with them. It is not something that a court would order but rather something the parents would decide, typically in an uncontested divorce. This type of living arrangement may help spare children the burden of moving between homes.

What is a Quitclaim Deed?

With a quitclaim deed, a seller or grantor is transferring a piece of property to a buyer, but is not guaranteeing that the property has a clean title. Because a title search does not need to be conducted, a quitclaim deed is usually the easiest and least expensive way to transfer property, but it can also be very risky if you do not know the seller or grantor. Quitclaim deeds are common when the two parties have complete trust in each other which in return would mean the buyer does not have a need for a warranty on the property. A property is transferred “as is” through a quitclaim deed. This means that if there are any liens on the property, the buyer or grantee will be responsible for them. Also, if the grantor only owns a portion of the property being transferred, then the quitclaim deed only covers the portion the grantor owns.

What is a Limited Liability Company (LLC) business structure?

An LLC is structured in a way that offers owners the chance to limit their personal liability which protects their personal assets. It offers flexibility like a partnership does, but it provides protection of assets like a corporation does. LLCs are common in Michigan. They are inexpensive to start and easy to set up. You are required to file original articles of organization which should contain all the information required to form your LLC. They offer flexible management structures and do not put a limit on the number of members or owners the business may have. Typically, LLCs pay lower taxes than corporations. The profits that an LLC makes are treated as the business owners’ personal income, they are not subject to corporate taxation.

What is a Gift Tax?

While Michigan does not impose a gift tax, the Federal government does. A gift tax is a federal tax that the IRS imposes on individuals who transfer (gift) property to someone without receiving anything in return. A gift includes cash, property, real estate, etc. In 2024, an individual can gift up to $18,000 recipient without being taxed and a married couple who files jointly can gift up to $36,000 per recipient without being taxed. The gift tax amount depends on the value of the gift, but can range from 18%-40%.

What is a B Corporation?

This business structure is also called a benefit corporation. They are a for-profit corporation, but they are also mission driven. They must receive a certification that shows they are socially and environmentally responsible and transparent. This type of corporation is taxed in the same way as a C Corporation, so they do not receive any tax breaks. Companies that focus on the planet and people as well as making a profit should be structured as B Corporations. B Lab (the company that performs the certification assessment) says that “Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. B Corps are accelerating a global culture shift to redefine success in business and build a more inclusive and sustainable economy.” Examples of B Corporations would be TOMS, Ben and Jerry’s, Thrive Market, and Seventh Generation, among many others. B Corporations build trust with their consumers and have the advantage of attracting investors because of their business mission.

What is a Pet Trust?

It is a legal document that provides care for a pet after the owner passes away. Many people consider pets as members of their family so they plan for them in the same way as their other family members. Consider the following when creating a trust for your pet:

• Who should be the trustee to manage the funds for your pet?
• Who should be the caretaker for your pet?
• How much money will your pet need?
• What should be done at the end of your pet’s life?
• What should be done with the leftover money after your pet dies?

What is a Civil Infraction?

• A violation of a traffic law or a local ordinance
• Charges: a monetary fine without jail time
• Violators have a right to appear in court to dispute the charge
• Prosecution has the burden to prove the offense by a preponderance of the evidence
• Civil Infraction Examples:
  • Traffic Violations
  • Noise Violations
  • Illegal Structures on your property

What are the benefits to a Lady Bird Deed?

• It avoids probate.
• It inexpensively provides for transfer of real property at your death.
• You retain full control of the property during your lifetime.
• You transfer the property to your Grantees at your death without increase in the property tax, so long as the property is not used for commercial purposes and the Grantees are your relatives.
• You can transfer the property without incurring gift tax because it transfers only upon your death.
• You can qualify for Medicaid benefits while preventing your home from being subject to Medicaid recovery at your death.

What is a C Corporation Business Structure?

Businesses structured as C Corporations are independent of their shareholders. They are the most prevalent type of corporation as they provide defined tax and ownership structures.

• They are for profit companies that pay tax on the profits.
• Funds distributed out to the shareholders as dividends can also be taxed.
• They can be expensive to start and require extensive record keeping.
• They have strong personal liability protection for their shareholders.
• They have no limit on the number of shareholders they can have and can also offer stock options.

What is Michigan Intestate Succession?

It is a set of laws that serves as a default will that instructs how and to whom your assets are distributed if you die without a will in Michigan. There is a certain order to which assets are divided through intestate succession. Who gets what depends on if you have a living spouse, living children or grandchildren, or living parents when you die.

What is an S Corporation Business Structure?

Generally speaking, an S Corporation business structure passes taxable income, credits and deductions, and losses to its shareholders. They have a special tax status with the IRS which provides them with some tax advantages.

• A business must meet certain IRS requirements to become and remain an S Corporation.
• An S Corporation does not pay corporate taxes, because the profits and losses are passed through the business and reported to the shareholders personal tax returns.
• Like all corporations, they must file articles of incorporation.
• Typically, S Corporations are smaller businesses since they cannot exceed 100 shareholders and they must hold shareholder and director meetings.

How do I safely dispose of drugs?

It is important to properly dispose of prescription drugs and medications when they are no longer needed. Proper disposal helps keep the environment and humans protected. Drugs should be taken to a collection to be incinerated. This process destroys the chemicals inside the drugs, keeping them from entering our drinking water resource. These collections can be found at police stations, hospitals, and pharmacies.

What is a Guardian of a Minor?

Typically, a guardian is responsible for providing day to day care for a person, ensuring their personal needs are met, including housing and medical care. When someone is appointed guardian of a minor, that person steps into the role of the parent of the child. A guardian is to provide care and custody for the child as well as making decisions on their behalf. There are two different types of guardianship for minors: full and limited.

What specific information should a Non-Disclosure Agreement contain to ensure it is legally valid?

• The names of all parties involved in the contract.
• A description of the confidential information that the employer wants the employee to keep private. It is important to be as specific as possible.
• The owner of the confidential information.
• The reason the information is confidential so the employee understands why they are required to sign the contract.
• The length of time that the information should be kept confidential.
• The remedies in the event the NDA were breached or suspected of being breached.

Is it legal to record an in-person conversation?

In Michigan, if you are actively participating in a conversation, you can legally record it without the consent of the other person. If you are not a part of the conversation, then recording it could be considered illegal wiretapping or eavesdropping, unless you have advanced consent from all parties involved.

If parents share custody of their child or children, is child support still required to be paid?

Even if you share joint physical custody after a divorce, it’s probable that a judge will still order child support to be paid by one parent. The Michigan Child Support Formula calculates which parent pays child support and the amount. Some of the factors that are considered when calculating child support through this formula are:

• Income of each parent
• Number of children
• Number of overnights that each parent has the child or children per year
• Healthcare costs
• Childcare expenses

IF YOU FAIL TO PAY COURT ORDERED CHILD SUPPORT, YOU COULD FACE LEGAL CHARGES INCLUDING JAIL TIME.

What is a Non-Disclosure Agreement?

Non-disclosure agreements (NDAs), also referred to as Confidentiality Agreements, are legally binding contracts in which one or more parties enter into a confidential relationship because of sensitive information.

• NDAs are used to help keep valuable business information secret.
• NDAs are not just for large businesses.
• NDAs can protect a company from an employee leaving and using the information they were taught to start their own competing business.
• If NDAs are breached, the parties involved could be subject to lawsuits.
• The confidential information protected by a non-disclosure agreement is typically the information that makes a business successful and unique.

As a part of a comprehensive estate plan, what type of assets should you inventory?

This could feel overwhelming, but it is beneficial to make a list of all your assets and clarify who owns them (if they are just in your name or if they are jointly owned) and who you would like to receive them after you pass. Examples of this would be:

• Your Home
• Other Real Property
• Bank Accounts
• Retirement Accounts
• Life Insurance
• Stocks and Bonds
• Brokerage Accounts
• Vehicles
• Household Items
• Clothing
• Jewelry
• Works of Art

What is a Parenting Plan?

A parenting plan helps divorced parents manage their responsibilities and rights when it comes to their children. It is not required by every judge, but some judges will not enter a consent judgment of divorce without it being included in the judgment. Depending on the post-divorce relationship you have with your spouse, a specific parenting time plan can be very important to cooperative parenting. Some of the items that may be detailed in a parenting plan are as follows:

• Dispute Resolution and Decision Making
• How the Parents Communicate About the Children
• Safety Provisions
• Childcare
• Choice of Schools and Extra-Curricular Activities
• Rules for the Children Based on Age

What is a Partnership Business Structure?

This type of business structure may be ideal for businesses owned by multiple people. It is also the simplest way for more than one person to own and operate a business where all the owners share in the profits and share in the liabilities. A partnership business structure:

• Does not pay taxes on income.
• It passes profits and losses to the partners.
• Has two different types: general and limited partnerships.

When are you legally allowed to ignite fireworks?

The State of Michigan states you are allowed to ignite fireworks after 11:00AM on the following days throughout the year:

• December 31 up until 1:00AM on January 1st
• Saturday and Sunday before Memorial Day up until 11:45PM
• June 29-July 4 up until 11:45PM
• July 5 (Only if it falls on a Friday or Saturday) up to 11:45PM
• Saturday and Sunday before Labor Day up until 11:45PM

What happens if you refuse a preliminary breath test?

If you refuse a preliminary breath test, you are not alleviated from any consequences and it will only add to your list of offenses.

• You will be issued a civil infraction that will include fines and court costs.
• You could still be arrested for suspicion of an OWI.
• You will be transported to the police station.
• At the station, the officer will request that you submit to an evidential breath test or even a blood test.

What information must a non-disclosure agreement contain to ensure it is legally valid?

• The names of all parties involved in the contract.
• A description of the confidential information that the employer wants the employee to keep private. It is important to be as specific as possible.
• The owner of the confidential information.
• The reason the information is confidential so the employee understands why they are required to sign the contract.
• The length of time that the information should be kept confidential.
• The remedies in the event the NDA were breached or suspected of being breached.

What is an Irrevocable Trust?

An irrevocable trust, as the name indicates, is one that cannot be revoked or amended. The Grantor generally is not the trustee. Because the Irrevocable Trust cannot be revoked or amended, when the grantor transfers assets to an Irrevocable Trust he loses the ability to continue to use and control those assets. Therefore, Irrevocable Trusts are used only for certain purposes, most commonly:

*To avoid estate tax on life insurance proceeds by transferring ownership of insurance policies on the Grantor’s life to the Trustee, who then names the Irrevocable Trust as the beneficiary of the polices. (Irrevocable Life Insurance Trust).

*To protect trust assets from possible future claims of creditors of the Grantor (Asset Protection Trust).

*To protect assets for the benefit of a beneficiary who is receiving government benefits that would be lost if the beneficiary received the trust assets outright (Special Needs Trust).

Check back to see more common legal questions added every Friday!

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