Living Trust Attorney in Michigan — Probate, Lady Bird Deeds and Property Tax Uncapping

Michigan families have several tools to avoid probate, including living trusts and Lady Bird deeds. This guide from a living trust attorney in Michigan perspective explains how they compare and what to watch for with Michigan property taxes.

Michigan has no estate or inheritance tax. Consequently, planning focuses on probate avoidance, incapacity and protecting beneficiaries. However, property tax "uncapping" can affect transfers. Therefore, Michigan-specific planning matters.

A properly funded trust handles most goals. Nevertheless, a Lady Bird deed is sometimes a simpler choice.

How Michigan probate works

Michigan probate is handled by the county probate court. Many estates use informal probate, which involves less court supervision. However, the personal representative must still notify creditors, inventory assets and distribute the estate.

For small estates, Michigan allows simplified procedures below a limit that is adjusted for inflation. Our Probate Documents service helps personal representatives.

Lady Bird deeds in Michigan

Michigan recognizes enhanced life estate deeds, often called Lady Bird deeds. You keep full control of the property during life, including the right to sell. Then, at death, the property passes to the named beneficiaries without probate.

Lady Bird deeds are popular in Michigan, partly because of Medicaid estate recovery considerations. However, they do not help with incapacity or other assets. Consequently, many families combine a deed with a trust.

Property tax uncapping

Michigan caps increases in taxable value while you own a home. When property transfers, the cap can be removed, called uncapping, which can raise property taxes.

Transfers into your own revocable trust generally do not uncap the property. Moreover, certain transfers to family members are exempt from uncapping if conditions are met. Therefore, plan transfers with uncapping in mind. A living trust consultation explains the rules.

Funding your trust in Michigan

A trust only avoids probate for assets it actually owns. Therefore, funding is the step that makes everything work.

Real estate

Michigan homes are transferred to the trust by deed, recorded with the county Register of Deeds. Make sure the principal residence exemption continues. Alternatively, a Lady Bird deed can name the trust as the remainder beneficiary.

Accounts, retirement and insurance

Next, retitle bank and brokerage accounts into the trust's name, or add the trust as the payable-on-death beneficiary where allowed. Retirement accounts usually stay in your name with beneficiary designations instead. Similarly, life insurance can name the trust or individuals.

Personal property

Finally, an assignment of personal property moves household items into the trust. Our Living Trust package includes step-by-step funding instructions for Michigan. Consequently, nothing important is left behind.

Blended families, children and choosing a trustee in Michigan

Blended families need careful planning. For example, a parent may want to support a new spouse while protecting an inheritance for children from an earlier marriage. In addition, Michigan gives a surviving spouse elective rights in many cases, which can affect plans for children from an earlier marriage. Therefore, a trust can hold assets for the surviving spouse for life and then pass the remainder to the children.

Similarly, a trust can manage money for minor children until they are older, instead of handing everything over at 18. Moreover, you choose the successor trustee. Pick someone organized, honest and willing, or name a professional trustee when family dynamics are complex.

If you already have a trust, a trust review checks whether it still fits your family and Michigan law.

Flat fee living trust pricing and documents in Michigan

Our Living Trust service starts at $199 for Michigan. The standard package tailors the trust to Michigan law and your family. Meanwhile, the premium package adds attorney review.

A complete plan also needs a durable power of attorney and a patient advocate designation, which is Michigan's healthcare power of attorney, each with specific signing and acceptance requirements. Our Estate Plan Bundle prepares these to Michigan standards. In addition, our durable power of attorney and healthcare directive services are available individually.

Not sure whether a trust is worth it for you? A living trust consultation compares a trust with a will and other probate-avoidance tools. For more, read our national guide to flat fee living trusts.

Common living trust mistakes in Michigan

The most common mistake is signing a trust but never funding it. Consequently, assets left outside the trust may still need probate. In Michigan, another frequent problem is transferring property to children directly without considering property tax uncapping, which can raise their tax bill.

Similarly, many people forget to update beneficiary designations on retirement accounts and life insurance. As a result, money can go to an ex-spouse or the wrong person. Therefore, review every designation when you sign your trust.

Finally, keep the trust current. Marriage, divorce, a new grandchild or a large change in assets should all prompt a review. In addition, store the original documents safely and tell your successor trustee where they are.

What the trustee does after a death in Michigan

When the trust creator dies, the successor trustee takes over without court involvement. First, the trustee obtains death certificates and secures the assets. Next, the trustee notifies beneficiaries as Michigan law requires.

After that, the trustee pays debts, expenses and any taxes. In particular, the trustee should check uncapping rules before transferring real estate to beneficiaries. Then the trustee transfers or sells real estate by recording documents with the county Register of Deeds.

Finally, the trustee distributes the remaining assets under the trust's terms and keeps records. Consequently, the family avoids probate and keeps matters private. Our executor documents service helps trustees and executors stay organized.

Out-of-state property and moving to Michigan

Many Michigan families own property elsewhere, such as homes in Up North, Florida or Ohio. Without a trust, each state may require its own probate, called ancillary administration. Therefore, deed out-of-state property to your trust too.

If you move to Michigan with a trust from another state, it generally remains valid. However, it may not reflect Michigan's tax rules, property law or signing requirements for related documents. Consequently, a review after a move is wise. In addition, update your powers of attorney and healthcare documents to Michigan forms, because banks and hospitals accept familiar forms more readily.

Who benefits most from a living trust in Michigan?

A living trust is not essential for everyone. However, it adds real value in several situations. First, homeowners who want to keep their house out of probate benefit. Second, people who own property in more than one state avoid multiple probates.

Third, anyone concerned about incapacity benefits, because the successor trustee can step in without a court guardianship or conservatorship. Fourth, parents of young children or beneficiaries who need help managing money gain control over how and when assets are distributed.

In addition, Michigan has property tax uncapping rules, so a trust helps you control how and when real estate passes. Consequently, many Michigan families find a trust worth the modest cost. A living trust consultation helps you decide.

Our Living Trusts services in Michigan

Every service below has a fixed price, is prepared by a qualified attorney and is delivered online — wherever you are in Michigan. Additionally, you can upload evidence, message your attorney and track progress from your secure client dashboard.

Living Trusts across Michigan — cities we serve

We work with clients in every part of Michigan, entirely online. Therefore, it does not matter whether you live downtown or hours from the nearest courthouse. Your documents follow Michigan law and your county's local practice. Choose your city below to see local details and prices.

• Detroit: Revocable Living Trust in Detroit · Complete Estate Plan Bundle in Detroit · Living trust consultation in Detroit
• Grand Rapids: Revocable Living Trust in Grand Rapids · Complete Estate Plan Bundle in Grand Rapids · Living trust consultation in Grand Rapids
• Warren: Revocable Living Trust in Warren · Complete Estate Plan Bundle in Warren · Living trust consultation in Warren
• Sterling Heights: Revocable Living Trust in Sterling Heights · Complete Estate Plan Bundle in Sterling Heights · Living trust consultation in Sterling Heights
• Ann Arbor: Revocable Living Trust in Ann Arbor · Complete Estate Plan Bundle in Ann Arbor · Living trust consultation in Ann Arbor
• Lansing: Revocable Living Trust in Lansing · Complete Estate Plan Bundle in Lansing · Living trust consultation in Lansing
• Flint: Revocable Living Trust in Flint · Complete Estate Plan Bundle in Flint · Living trust consultation in Flint
• Dearborn: Revocable Living Trust in Dearborn · Complete Estate Plan Bundle in Dearborn · Living trust consultation in Dearborn
• Kalamazoo: Revocable Living Trust in Kalamazoo · Complete Estate Plan Bundle in Kalamazoo · Living trust consultation in Kalamazoo
• Troy: Revocable Living Trust in Troy · Complete Estate Plan Bundle in Troy · Living trust consultation in Troy

More Michigan services

Complete Estate Plan Bundle in Michigan · Living trust consultation in Michigan · Durable Power of Attorney in Michigan · Advance Healthcare Directive / Living Will in Michigan · Probate Documents Package in Michigan · Trust review in Michigan. See all legal services in Michigan.

Nearby states

Moving between states, or is the other party elsewhere? We also cover Revocable Living Trust in Ohio, Revocable Living Trust in Indiana, Revocable Living Trust in Wisconsin, Revocable Living Trust in Illinois. See every location we cover.

Frequently asked questions

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Related guides

This guide is general information, not legal advice for your situation. Every case is different — speak to a qualified attorney before you act.