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Wouldn't this type of thing have to happen in michigan since he established residency here and died here?
Yes, I am not sure why a probate case was filed in Chicago because if he was living in Michigan and had established residency there by living there for at least 6 months, then he is legally a resident of Michigan an a probate case would have to be filed in the probate court in the county where father in law was living when he passed.
So husband needs to file a formal probate case in Michigan and then file a motion to dismiss the Chicago case as improperly filed since that court has no jurisdiction over the case.