Can You Have Both a Will and a Living Trust?

Deciding how your property will be passed on can feel overwhelming. Structuring the legal documents needed to make that happen is the attorney’s role.  When using a Trust, combining it with a will is the smoothest route for Michigan residents.

At Bassett Murray Law Group, PLLC, we have spent over three decades guiding Michigan families through these choices. This article breaks down how the two documents differ, why pairing them often makes sense, and the steps needed to put that combo to work for you.

Wills and Living Trusts in Michigan

Both a trust and a will are tools that let you decide who receives your property after death, yet they work in very different ways. A will is a written statement filed with the Probate Court after death that names a personal representative, directs property transfers, appoints a guardian for minor children, and lists a funeral representative.  A living trust, on the other hand, holds assets during life under the care of a trustee so those items can skip probate when you pass.  In a sense, it lives on after your death to hand out your assets the way you would have done if living.

Michigan law sets strict signing rules for each. A will needs two disinterested witnesses who watch you sign and a notary.  A revocable living trust must show clear intent to create the trust and must be funded with property you retitle into the trust’s name.

How Wills and Living Trusts Work Together

The two documents do not cancel each other out; they act like puzzle pieces that lock together. People who own a home, investment accounts, or valuable collections often place those items in a trust to avoid probate delays while still writing a will for any assets left outside the trust.

Revocable trusts remain flexible during your lifetime, allowing you to transfer assets in or out. Irrevocable trusts freeze the terms of the trust, offering creditor and Medicaid planning benefits but less control.  When using a trust, a special type of will, referred to as a “pour-over will”, serves as a safety net to catch assets that are not linked to the trust at your death.  That may happen for a few reasons.  Maybe you intentionally left something out of the trust, or maybe a beneficiary designation or deed naming the trust failed for some reason.  Perhaps your estate had assets that you did not have time to collect and link to the trust.   The pour-over will, through the probate process, pour the assets over into the trust where your distribution instructions are spelled out.

Advantages of Having Both a Will and a Living Trust

Pairing a will with a living trust offers more than just flexibility. It gives you control and clarity. Let’s walk through the key benefits of combining both tools in your estate plan.

Avoiding Probate

Assets titled in the trust pass directly to beneficiaries without court supervision. That can shave months off the timeline and reduce costs. Michigan does offer a small-estate affidavit for estates under $55,000 (adjusted annually for inflation)  that hold no real estate, yet larger estates must open probate, pay filing fees, and wait out creditor deadlines.

Planning for Incapacity

If you become ill or injured, the successor trustee named in your living trust steps in to manage the assets in the trust and pay bills.  A will does nothing until death, so relying on a will alone means your family may need to rely on a power of attorney, or if there is no power of attorney, a court-appointed conservator, if you cannot act on your own.

Providing for Minor Children and Dependents

A will lets you name a guardian to raise your children. It also outlines who will care for a loved one with a disability. The trust then manages the money for those same children or dependents, doling out funds for school, housing, or medical care according to rules you write.

Maintaining Privacy

Probate filings turn wills into a public record, allowing anyone to read the details. A trust stays private because it never goes through court unless someone sues. Families that prefer to keep finances private often lean on the trust for that reason alone.

Potential Tax Benefits

Michigan does not have an estate tax that is independent from the Federal tax.  If your assets are above the Federal Unified Credit Exemption ($13.99 million in 2025 and double that for married couples), then trusts can help minimize, delay, and in some cases eliminate the tax burden.  The tax rate starts at 18% and tops out at 40% depending on how much the estate exceeds the exemption.  With proper drafting, the savings can be substantial.

When a Will Alone May Be Sufficient in Michigan

Not every estate needs a trust. If your beneficiaries are able to manage money, do not depend on governmental benefits for their care or living expenses, are not facing bankruptcy or a divorce, and you are not anticipating arguing among the beneficiaries, then a basic will may do the job. Even then, be sure the will covers the following items:

• Your plan of distribution, including alternative beneficiaries.
• Guardians for any minor children or disabled adults in your care, and a backup person.
• Plans for pets and personal keepsakes.
• A personal representative (executor) who is willing and able to serve, and a backup person.
• A funeral representative and a backup person, if you do not want your next of kin in charge of your funeral and disposition of your remains.

Keeping the will current remains vital.  Review your plan every 3-5 years and at major life events for anyone named in your will.  Such events may include marriage, divorce, birth, death, disability, and a significant change in assets.

Key Considerations When Creating a Living Trust

Before setting up your trust, there are several practical decisions you’ll need to make. Here are some key factors to consider when establishing a trust tailored to your specific situation.

Funding the Trust

Signing the trust document alone does not move property into the trust. You must change titles on homes, bank accounts, investments, and life insurance so the trust owns them or becomes the beneficiary. Items left outside the trust may be subject to probate later, defeating one main benefit of establishing the trust in the first place.

Choosing a Trustee

Most people serve as their trustee during their lifetime. You will also need one or more backup trustees, known as successor trustees, who will assume the role in the event of incapacity or the trustee’s death. Pick someone organized and trustworthy, or consider a professional corporate trustee if family dynamics are tense.

Understanding Revocable vs. Irrevocable Trusts

A quick summary helps clarify the trade-offs. The table below shows the main contrasts.

Feature	Revocable Trust	Irrevocable Trust
Control During Life	You keep control and can amend terms	Control shifts to the trustee, and changes are rare
Creditor Protection	Little to no	High, once a five-year Medicaid look-back period passes
Tax Planning	Estate remains in your taxable estate	May remove assets from the estate if drafted correctly
Flexibility	Very flexible	Rigid but powerful for asset sheltering

 

Michigan Medicaid rules include a five-year look-back on transfers to most irrevocable trusts. There are pros and cons to irrevocable trusts.  Consider carefully, with the help of an experienced elder law attorney, whether or not an irrevocable trust is right for your circumstances.

Take Control of Your Estate Plan: Contact Us Today

For over 30 years, Bassett Murray Law Group, PLLC, has helped families create clear, reliable estate plans that combine wills, trusts, and powers of attorney. We listen, outline your choices, and draft documents that work together so loved ones never face guessing games. Call us at 734-930-9200 or 231-427-2292 or reach us through our Contact Us page to start a conversation about your Michigan estate plan. Peace of mind begins with a straightforward step, so let’s get your wishes on paper today.