Educational guide — not legal advice. Trust and probate law varies by state and changes over time. Consult a licensed Michigan attorney about your situation.
The short answer
Michigan isn’t a state where trusts are a near-default. The honest starting point is: most people don’t need one.
- You probably don’t need a living trust if your estate is modest and your major assets already pass by beneficiary designation or a Lady Bird deed.
- You probably do benefit from one if you want privacy, incapacity protection, out-of-state coverage, or control over how heirs receive assets.
What makes more Michigan homeowners think about it is the state’s probate inventory fee.
The Michigan quirk: the probate inventory fee
Most reasons to avoid probate are about attorney fees. Michigan adds a specific one: a mandatory probate inventory fee under MCL 600.871, charged on the full date-of-death value of the probate estate (before subtracting the mortgage). It’s a sliding scale — roughly:
| Probate estate value | Approximate inventory fee |
|---|---|
| $100,000 | ~$363 |
| $250,000 | ~$550 |
| $500,000 | ~$863 |
| $1,000,000 | ~$1,175 |
| Each $100,000 over $1M | + $31.25 |
That’s on top of attorney fees (no statutory schedule — “reasonable compensation”), a ~$175 filing fee, and creditor-notice publication. Keeping your home (usually your biggest asset) out of probate directly shrinks this fee. See Probate Cost in Michigan.
The good news: you often don’t need a full trust to avoid it
Here’s what makes Michigan friendlier than the fee suggests. You can keep most assets out of probate — and out of the inventory fee — with cheaper tools:
- A Lady Bird deed (enhanced life estate deed) passes your home outside probate for a few hundred dollars, while you keep full control during life. This is the big one in Michigan. See Lady Bird Deed vs. Living Trust in Michigan.
- Payable-on-death (POD) and transfer-on-death (TOD) registrations on bank and brokerage accounts.
- Beneficiary designations on retirement accounts and life insurance.
- Small-estate procedures. For 2026, Michigan’s small-estate threshold is $53,000 (adjusted annually), with a Petition and Order for Assignment (MCL 700.3982) and a Transfer by Affidavit available 28 days after death (MCL 700.3983).
Combine a Lady Bird deed with beneficiary designations, and a typical Michigan estate can pass mostly or entirely outside probate — without the cost of a trust.
When a living trust IS worth it in Michigan
A trust ($1,500–$3,500) tends to pay off when:
- You want incapacity protection. A trust lets your successor trustee manage assets if you become incapacitated, without a court conservatorship. (A durable power of attorney and a patient advocate designation for health care also help and are cheaper.)
- You own property in more than one state. A trust avoids a second “ancillary” probate; a Lady Bird deed only covers Michigan property.
- You want privacy. Probate is a public record; a trust is private.
- You need controlled distributions — holding assets for minor children, a special-needs beneficiary, or a blended family, releasing them over time. A Lady Bird deed and beneficiary forms transfer outright.
- You have multiple properties or complex assets where deed-by-deed and account-by-account beneficiary planning gets unwieldy.
When you’re fine without one
Skip the trust if:
- You rent or your home is handled by a Lady Bird deed or joint ownership.
- Your accounts already name beneficiaries.
- Your main goal is naming guardians for minor children — that’s a job for a will, not a trust.
In these cases, a will plus a Lady Bird deed and current beneficiary designations is a complete, responsible plan.
The catch with any trust: fund it
A trust only avoids probate (and the inventory fee) for assets actually retitled into it. The most common and costly mistake is paying for a trust and never deeding the home into it — which leaves the house headed for probate and the inventory fee anyway. If you set up a Michigan trust, confirm the attorney handles funding or follow a clear funding checklist.
The honest takeaway
Most Michiganders don’t need a living trust — there’s no death tax, and cheap tools handle most assets. Michigan’s probate inventory fee makes avoiding probate worthwhile for homeowners, but you usually don’t need a full trust to do it: a Lady Bird deed on the home plus beneficiary designations often gets you there for a few hundred dollars. Save the $1,500–$3,500 trust for when you want privacy, incapacity protection, out-of-state coverage, or control over how heirs receive assets — and fund any trust you create.
Common questions
Does Michigan have a transfer-on-death deed?
Not a statutory one — but Michigan widely recognizes Lady Bird (enhanced life estate) deeds, which serve nearly the same purpose: passing your home outside probate while you keep control during life.
What is the Michigan probate inventory fee?
A mandatory court fee (MCL 600.871) on the date-of-death value of probate assets — about $363 on a $100,000 estate up to ~$1,175 on a $1 million estate. Assets that avoid probate aren’t counted.
Is probate expensive in Michigan?
Moderately. There’s no statutory attorney or executor fee percentage (both are “reasonable compensation”), but the inventory fee plus filing and publication costs add up — a reason homeowners often use a Lady Bird deed or trust.
Do I still need a will if I have a Michigan trust or Lady Bird deed?
Yes — a will (a pour-over will if you have a trust). It catches anything not otherwise transferred and is the only document that can name guardians for minor children.
Does a living trust protect against Medicaid estate recovery in Michigan?
It depends on the trust. A revocable living trust does not protect assets from Medicaid — you still control them, so they still count. A properly structured irrevocable trust can, but it means giving up control and has a five-year look-back. In Michigan, many people use a Lady Bird deed instead to keep the home out of Medicaid estate recovery while keeping control during life. Medicaid planning is complex — get advice.
Does a living trust reduce the Michigan inventory fee?
Yes, for the assets it holds. The inventory fee (MCL 600.871) is charged only on assets that go through probate, so anything titled in a funded trust — or passing by Lady Bird deed or beneficiary designation — isn’t counted.
Should I use a Lady Bird deed or a trust for my home in Michigan?
For a single home passing to adult beneficiaries, a Lady Bird deed is usually cheaper and does the job. A trust is better if you have multiple properties, want incapacity management, need controlled distributions, or own out-of-state property. See Lady Bird Deed vs. Living Trust in Michigan.
Related reading
- Lady Bird Deed vs. Living Trust in Michigan
- How Much Does an Estate Plan Cost in Michigan?
- Does a Will Have to Be Notarized in Michigan?
- Estate Planning in Michigan: The Complete Guide
- Probate Cost in Michigan
Educational information only — not legal, tax, or financial advice. Michigan trust and probate law is set by statute and changes; the small-estate threshold adjusts annually. Confirm your situation with a licensed Michigan attorney. Sources: MCL 600.871; Michigan Estates and Protected Individuals Code (EPIC), MCL 700.3719, 700.3982, 700.3983.