Does a Will Avoid Probate in Michigan? What You Should Know

Plenty of people hear that a will keeps your estate out of court, then find out later that it is not how it works in Michigan. A will is powerful, but it is not a ticket to avoid probate.

At Bassett Murray Law Group, PLLC, we bring over 30 years of Michigan estate planning, elder law, and probate experience to help families of every shape and size feel prepared. Our goal here is simple: clear up what a will actually does in probate and share smart ways to keep property out of probate when that makes sense for you.

Let’s Start With Probate Matters

Probate is a court process that handles a person’s affairs after death under Michigan’s Estates and Protected Individuals Code. The court confirms who is in charge, then oversees the steps needed to wrap up the estate. Families often use this process to create an official record and avoid disputes.

The typical steps look like this, and a few can happen at the same time depending on the case:

• File the will if one exists, open the estate, and appoint a personal representative.
• Locate, secure, and inventory assets, then value what the deceased person owned.
• Pay valid debts and taxes, then distribute what is left to the right people.

Probate can add time and fees, and filings are public. That extra attention can feel heavy for a grieving family, especially where privacy matters a lot. On the flip side, court supervision can prevent confusion in a tough moment.

The Role of a Will in Probate

A will does not avoid probate. It is a document presented to the court so the judge can confirm that it meets Michigan’s rules and reflects the person’s wishes. Once validated, the will guides what happens inside the probate case.

A will explains who should receive which assets, and it names the personal representative who will handle the estate. The court still oversees the work, which keeps things official and on record. If there is no will, the estate passes under Michigan’s intestate succession rules. (See Mich. Comp. Laws § 700.2101.)

If you have a will, your family will likely still open a probate case for assets that do not pass by other means. That reality leads many people to add probate-avoidance tools to their plan.

Methods to Avoid Probate in Michigan

You have several ways to move property outside probate, and each tool fits a different goal. Some offer speed and privacy, while others protect control during life. A good plan usually blends two or three approaches, matched to your assets and family needs.

Living Trusts

A living trust lets you own assets in the name of the trust while you stay in charge as trustee. You can place real estate, vehicles, bank accounts, brokerage accounts, and personal property into the trust. At death or incapacity, a successor trustee steps in and follows your written instructions without opening a probate case.

People often like trusts for privacy and flexibility. You can update terms while you are alive and well. Proper funding, meaning retitling assets into the trust, is the part that makes this work.

Joint Ownership with Right of Survivorship

Property held in joint tenancy with right of survivorship passes automatically to the surviving owner without probate. Michigan recognizes this approach under Mich. Comp. Laws § 554.44 and recorded title rules in § 565.49. Tenancy in common is different; it does not include survivorship, so a deceased owner’s share would still enter probate.

Joint ownership is simple, yet it carries risks. Adding someone can reduce your control, trigger gift issues, and expose the asset to the joint owner’s creditors or in a divorce. Michigan also offers tenancy by the entirety for married couples, a form with survivorship and added protection from one spouse’s separate creditors.

Before adding anyone to a title, think through the tradeoffs. A quick transfer today can lead to headaches later if life or relationships change. There are often safer routes that still avoid probate.

Beneficiary Designations

Payable-on-death and transfer-on-death designations send accounts straight to named beneficiaries. Banks and credit unions use POD for deposit accounts under Michigan law. (See Mich. Comp. Laws § 700.6101.) Brokerage firms use TOD for securities, and Michigan recognizes these transfers under § 700.6307.

This path is easy to set up and keeps things efficient. One caution: account values move up and down, so naming one child on a large account and another child on a small one can create uneven results. Coordinating with a trust or a written plan avoids surprises.

Lady Bird Deeds (Enhanced Life Estate Deeds)

Michigan allows a Lady Bird deed that keeps full control of real estate while you are alive and transfers the property at death without probate. You can live there, rent it, sell it, or take a loan, all without the beneficiary’s consent. The deed only covers real estate, so other assets call for different tools.

These deeds work well for a home or cabin. Many families pair a Lady Bird deed with a simple trust for everything else. Good drafting is vital so title companies and lenders accept the deed without fuss.

Gifting

Lifetime gifts shrink the estate, which can reduce or even eliminate probate. That said, federal gift tax rules often require filing a gift tax return for larger gifts, and Medicaid has a five-year lookback that penalizes transfers to qualify for benefits. Once you give it away, it is gone, so you lose control and cannot redirect it later.

Gifting can be a fit for modest amounts or for special items with emotional value. Larger or frequent gifts call for a plan that weighs taxes, creditor risk, and long-term care goals. Structured gifts through a trust can smooth out those bumps.

Here is a quick comparison that many clients find helpful before choosing tools.

Method	Probate Avoided For	Pros	Watch-outs	Michigan Notes
Living Trust	Assets titled to the trust	Privacy, control in life, clear instructions in case of incapacity and death	Requires funding and upkeep; trustee choice matters	Common solution for real estate and larger accounts
Joint Tenancy with Survivorship	Jointly titled assets	Simple and fast transfer to the survivor	Loss of full control, creditor exposure, and possible tax effects	MCL § 554.44, § 565.49; tenancy by the entirety for married couples
POD and TOD Beneficiaries	Banks, credit unions, brokerage accounts	Low cost, easy to set up and update	Uneven shares if values change, no oversight for minors	MCL § 700.6101 and § 700.6307 recognize these transfers
Lady Bird Deed	Real estate only	Keep full control in life, avoid probate at death	Applies only to property listed on the deed	Widely used in Michigan for homes and cottages
Gifting	Gifted property	Shrinks estate, simple for small items	Loss of control, possible tax filing, Medicaid lookback issues	Plan carefully if long-term care is a concern

 

Many families use a mix. A trust for the bulk, a Lady Bird deed for the home, and beneficiary designations for a few accounts can create a clean handoff. Your plan should match your people, your property, and your goals.

When Probate Might Be Beneficial

Probate is not always a burden. Opening a case starts a claims window that shortens creditor rights once proper notice goes out, often four months from publication for unknown creditors and a shorter period for those who receive actual notice. Without probate and without notice, creditors can pursue claims for up to three years in many situations.

Families facing sketchy or disputed bills often choose probate to bring finality. The court process sets deadlines that close the door on late claims. That structure can save headaches for the person in charge of the estate.

Simplified Probate Procedures

Michigan offers simplified routes for small estates that fit certain dollar limits. These include assignment of property by the court and small estate affidavits for personal property. See EPIC provisions such as MCL § 700.3981 and § 700.3982. Michigan Court Rules and local court instructions explain forms, filing steps, and current threshold amounts.

These procedures help when the estate is modest or when most assets already pass by beneficiary or deed. A short court process can wrap up the remaining items without a full administration. Check the Michigan Compiled Laws and your local probate court’s guidance for details on eligibility.

Do you have questions about probate avoidance? Contact Bassett Murray Law Group, PLLC.

Bassett Murray Law Group, PLLC is here to give you calm, clear planning that fits real life. We focus on estate planning, elder law, and probate across Michigan, and we work to bring you peace of mind with every step. Feel free to call us at 734-930-9200 in Ann Arbor or 231-427-2292 for our Petoskey office, or reach us through our Contact Page with your questions.

We welcome your questions on wills, trusts, Lady Bird deeds, and everything in between. If you want a plan that keeps your family out of court when possible, or uses probate wisely when that makes sense, let us help shape it. Our team is invested in improving lives and dedicated to outcomes that protect your wishes and your loved ones, today and down the road.