EPIC Omnibus: An Overview of 2024 Modifications
The Estates and Protected Individuals Code (EPIC), replaced Michigan’s Revised Probate Code as the primary legal document governing several key areas, including Administration of Probate and Trust Estates as well as protections for Protected Individuals. EPIC outlines how estates are settled, debts are paid, and assets are distributed to beneficiaries as dictated by an estate plan or through intestacy laws (if there is no will). EPIC also protects individuals who, due to age or disability, cannot manage their own affairs. On February 21st, 2024, a new EPIC Omnibus Bill was signed into law which makes some notable changes in the area of probate and estate planning.
Please note that this post is not exhaustive, and every situation is unique. In the event that you have questions, it’s advisable to speak with a Michigan licensed attorney. Contact Thompson Legal to speak with a Michigan Probate and Estate Planning Attorney.
What Areas of Law Are Affected By EPIC?
EPIC is a comprehensive law governing a wide range of legal matters related to the management of property and the care of individuals with diminished capacity. With its far-reaching implications, understanding EPIC is crucial for anyone involved in estate planning, probate, or the care of vulnerable individuals.
Probate Court Jurisdiction: EPIC establishes that the Probate Court as the sole authority to handle matters related to estates and protected individuals.
Formal vs. Informal Proceedings: The code offers options for both formal and informal proceedings. Formal proceedings involve more court oversight, while informal ones allow for a more streamlined process with less court involvement, suitable for uncontested estates.
Roles and Responsibilities: EPIC defines the roles and responsibilities of various parties involved, including personal representatives (executors of wills), guardians, conservators, and beneficiaries.
Wills and Trusts: The code outlines the legal requirements for creating valid wills and trusts, which are crucial tools for estate planning and ensuring your wishes are carried out after death.
EPIC provides clarity and consistency. EPIC replaced a patchwork of older laws with single, comprehensive code, offering greater clarity and consistency in legal processes. Moreover, EPIC establishes safeguards for protected individuals by outlining the appointment process for guardians and conservators, ensuring their well-being is prioritized.
What Are The Updates to EPIC?
The Michigan legislature recently enacted sweeping changes to EPIC with the passage of the 2024 EPIC Omnibus bill. The new legislation introduces substantial modifications to various aspects of estate administration, guardianship, and conservatorship, impacting both individuals and legal professionals alike. Some of the most material updates to EPIC include:
Standby Guardians: This addition allows for the designation of a backup guardian to take over if the primary guardian becomes unavailable due to illness, absence, or death. This helps ensure continuity of care for incapacitated individuals.
Increased Threshold Amounts: The legislation increased certain thresholds for different assets of a decedent. These thresholds are also adjusted for inflation annually, permitting more estates to pass without the need for probate court oversight.
Attorney Conduct: The changes also void inappropriate gifts to attorneys who prepare the estate planning instruments, sometimes referred to as the ‘Mardigian fix.’ Per the amendments, any substantial gift to a drafting attorney, or the attorney’s relative, is void unless the recipient is related to the individual making the substantial gift.
Other Changes: The omnibus bill also included provisions for patient advocates, regulations on specific trusts (animal care, non-charitable, and nondisclosure periods), but these are less widely impactful changes.
How Will The EPIC Updates Affect Me?
The 2024 EPIC Omnibus bill brings substantial changes that could significantly impact Michigan residents and their estate plans. From modifications to inheritance rights and the probate process to alterations in guardianship and conservatorship procedures, these updates may necessitate adjustments to existing wills, trusts, and powers of attorney. These recent updates might affect you in a few ways, depending on your unique circumstances:
If you have an estate plan: The increased threshold amounts for assets in a decedent's estate could potentially impact how your probate process unfolds. Previously, estates below a certain value might have required formal probate proceedings. With the higher thresholds, your estate might now qualify for a simpler, less expensive informal administration process.
If you are caring for a vulnerable adult: The introduction of standby guardians is a positive change if you are currently a guardian for someone. A standby guardian can step in and take over care responsibilities if you become unavailable. This provides peace of mind knowing your loved one won't be left without care.
Generally, the changes will not directly affect you unless you are involved in the probate process of an estate (as an executor, beneficiary, etc.) Or, you are currently a guardian or conservator for a protected individual. You can find out how the changes apply to you by consulting with an attorney. An estate planning attorney can review your specific situation and explain how the EPIC changes might impact your estate plan or your role as a guardian. In addition, you can visit the Michigan Legislature website which offers resources on EPIC, including the recent amendments: https://www.legislature.mi.gov/Bills
Conclusion
It's important to note that EPIC is a complex legal document, and these updates, like the increased threshold amounts for probate and the introduction of standby guardians, have the potential to impact your existing estate plan or your role as a caregiver.. While this explanation provides a general overview, consulting with an attorney is recommended for navigating specific situations related to estates and protected individuals.
To ensure your wishes are carried out and your loved ones are protected under the new EPIC guidelines, it's crucial to schedule a consultation with a qualified Michigan estate planning attorney. At Thompson Legal, we are well-versed in the nuances of EPIC and the recent amendments. We can provide personalized guidance to review your existing estate plan, address any potential issues arising from the changes, and ensure your assets are distributed according to your wishes. Don't hesitate to contact Thompson Legal today to schedule a consultation and navigate these complex legal matters with confidence.
Resources for Further Understanding:
Michigan Legislature EPIC Page: https://www.legislature.mi.gov/documents/mcl/pdf/mcl-Act-386-of-1998.pdf
State Bar of Michigan EPIC Information: https://connect.michbar.org/probate/home
Summary of the Enacted Bill: https://www.legislature.mi.gov/Bill
This article is for informational purposes only. It is not intended as legal advice. In the event you would like to speak with a Probate/Estate Planning Attorney, please Contact Thompson Legal at (734) 743-1646 to schedule a consultation.
