Edward Gudeman

Gudeman & Associates, P.C. is a team of knowledgeable attorneys who assist individuals, families and businesses. For over 45 years, we have used our experience, expertise and knowledge of laws to ensure Michigan residents, their families and business are protected. Gudeman attorneys possess a comprehensive background in multiple practices including Estate Planning, Business Planning, Federal and State Taxation, Real Estate and other legal services.

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Michigan

State Bar of Michigan

President/Managing Attorney

Gudeman & Associates, P.C.

1971 - Current

Edward Gudeman graduated from the University of Michigan Law School at twenty-three years of age. He has practiced in many areas of the law and is an experienced, knowledgeable and aggressive practitioner.

University of Michigan Law School

J.D.

1971

American Bankruptcy Institute

Member

2009 - Current

Consumer Bankruptcy Association

Member

2007 - Current

United States Supreme Court Bar

Member

1978 - Current

United States Tax Court

Member

1975 - Current

6th Circuit Court of Appeals

Member

1975 - Current

Real Estate Broker

Michigan Department of Licensing and Regulatory Affiars

2001

Q. Guidance needed for handling intestate estate with limited assets and debts in Michigan.

July 1, 2025

A: To address the small estate administration in Michigan for your uncle's estate, the following steps and considerations are necessary:

First, Michigan law provides for a simplified process for small estates under

MCLS § 700.3987. If the value of the estate, after deducting liens and encumbrances, does not exceed the costs of administration, reasonable funeral and burial expenses, homestead allowance, family allowance, exempt property, and necessary medical and hospital expenses of the decedent’s last illness, the personal representative may distribute the estate without giving notice to creditors. A closing statement must then be filed as provided under

MCLS § 700.3987, MCLS § 700.3988.

Second, to initiate the process, you will need to file the appropriate forms with the probate court. These include the Application for Informal Probate and/or Appointment of Personal Representative (PC 558) or Petition for Probate and/or Appointment of Personal Representative (PC 590), Testimony to Identify Heirs (PC 565), and Sworn Closing Statement for Small Estates (PC 590). Additional forms may be required depending on the specific circumstances, such as an Inventory (PC 577) and Account of Fiduciary (PC 583 or PC 584) Summary Estate Administration Forms List (MI).

Third, regarding creditors, Michigan law prioritizes the payment of debts when the estate's assets are insufficient to cover all liabilities. The order of payment is as follows: (1) necessary funeral expenses, (2) expenses of the last sickness, (3) debts with federal preference, and (4) other creditors. If the assets are insufficient to pay all debts within a class, creditors in that class are paid proportionally. No creditor in a lower class may be paid until all creditors in higher classes are fully satisfied.

Finally, if the estate's value is less than $5,000 and the debts exceed the assets, you may need to provide evidence of the estate's insolvency to the court. This may involve submitting an inventory of the estate's assets and liabilities. The court may then issue an order to distribute the estate's assets according to the statutory priority of claims

MCLS § 700.3987, MCLS § 700.3982.

In summary, you should begin by filing the necessary probate forms, identifying heirs, and preparing an inventory of the estate. You can then proceed with the simplified small estate process under MCLS § 700.3987, ensuring that creditors are addressed in the statutory order of priority. If the estate is insolvent, the court will guide the distribution of assets to creditors. It is advisable to consult with a probate attorney to ensure compliance with Michigan law and proper handling of the estate. ... Read More

Q. Do I owe taxes on life insurance money received from uncle?

June 18, 2025

A: The fact that the beneficiary was changed after your Grandpa's death certainly raises issues. Your uncle's power of attorney would not have been in effect, if the principal was already deceased because death of the principal would negate the power of attorney. This raises questions of who owned the policy, who were the beneficiaries prior to your uncle's change of beneficiary and, in general, whether or not your uncle could legally do what you have described.

Also, if your uncle changed the beneficiary to himself and then distributed the proceeds to you and others, that would constitute a gift from your uncle, not a distribution from the life insurance policy. Gifts are not subject to income tax, but depending on the size of the gift, there may be estate and gift tax consequences to your uncle.

The foregoing notwithstanding, as a general rule, however, life insurance proceeds distributed to beneficiaries are not subject to federal or state income taxes.

According to federal tax law, the proceeds of life insurance policies paid upon the death of the insured to individual beneficiaries are exempt from taxation. This principle is supported by case law, which emphasizes that such proceeds pass by the terms of the insurance contract and not through the decedent's estate or intestate laws, making them tax-free unless otherwise specified by statute.

Regarding your right to request documentation, as a beneficiary, you may have a right to request relevant documents, such as the will or other records, to ensure transparency in the distribution of the life insurance proceeds. If your uncle acted as the power of attorney for your grandfather, his actions, including changing the beneficiaries, may be subject to scrutiny to ensure they were in line with his fiduciary duties. If you suspect any impropriety or require further clarification, you may consider consulting an attorney to formally request documentation or initiate legal proceedings to obtain the necessary records.

In summary, the life insurance proceeds you received are likely not subject to income tax, but you may have rights to request documentation from your uncle to verify the propriety of his actions as the power of attorney. Consulting with a legal professional is advisable to address any concerns or pursue further action if needed. ... Read More

Q. Can a successor patient advocate in Michigan access the same info as a primary advocate?

June 11, 2025

A: The successor patient advocate in Michigan does not automatically have the same rights to access patient information as the primary patient advocate unless specific conditions are met. Under Michigan law, a successor patient advocate only assumes the powers and responsibilities of the primary advocate if the primary advocate is unable to act due to incapacity, resignation, or removal, as outlined in

MCLS 700.5507. Therefore, the successor advocate cannot access the same level of information as the primary advocate unless they are actively serving in the role of patient advocate.

The written agreements defining the roles of the primary and successor advocates are critical in this situation. If the agreements explicitly grant the successor advocate access to patient information while the primary advocate is still serving, this could provide a legal basis for such access. However, absent such provisions, the successor advocate's access is limited to when they are acting as the patient advocate, as per the statutory framework

MCLS 700.5507, MCLS 700.5509.

Additionally, the primary advocate is required to act in accordance with the patient’s best interests and known desires, as stated in MCLS 700.5507 and MCLS 700.5509. If the primary advocate’s refusal to share information with the successor advocate is inconsistent with the patient’s best interests or expressed wishes, this could potentially be challenged

MCLS 700.5507, MCLS 700.5509.

In conclusion, the successor patient advocate does not have the same access to patient information as the primary advocate unless the primary advocate is unable to act or the written agreements explicitly provide for such access. The matter should be reviewed in light of the written agreements and the patient’s expressed wishes to ensure compliance with Michigan law and the patient’s best interests. ... Read More