The Estate Planning Guide Est. 2026

How to Avoid Probate in Michigan

Published June 3, 2026 6 min read

Quick answer

Michigan's probate inventory fee (under MCL 600.871) is calculated on the entire date-of-death value of probate assets, so reducing the probate estate has direct dollar value. Lady Bird deeds are widely used in Michigan because they avoid both probate and the inventory fee, while preserving Medicaid estate-recovery protection.

Educational guide — not legal advice. Laws and figures change; confirm current details with a licensed Michigan attorney before relying on them.

Why probate avoidance matters in Michigan

In Michigan, the cost of going through full probate is real: Michigan does not set attorney or executor fees by statute — both are paid 'reasonable compensation.' What's unique to Michigan is a mandatory probate inventory fee under MCL 600.871, calculated on a sliding scale based on the estate's date-of-death value (about $363 on a $100,000 estate, rising to ~$863 at $500,000, ~$1,175 at $1,000,000, and another $31.25 per $100,000 above $1M). Add a ~$175 probate filing fee, ~$12 for Letters of Authority, ~$100–$200 for creditor notice publication, and attorney fees (typically hourly), and a routine estate commonly runs a few thousand dollars in court and professional costs, with most informal estates closing in 6–12 months.

That’s the bill you can avoid (or substantially reduce) by setting up the right legal tools before death. Most Michigan families can keep the majority of their estate out of probate using a few simple, low-cost moves.

The six tools that work in Michigan

1. Update beneficiary designations on retirement accounts and life insurance

Retirement accounts (401(k), 403(b), IRA, Roth IRA) and life insurance policies pass to the named beneficiary by operation of law — not through your will, and not through probate. This is true in every state, including Michigan.

For most Michigan households, retirement and life insurance assets are 40–70% of net worth, and all of it can pass outside probate just by keeping the beneficiary forms current.

What to do today: log into every retirement and life insurance account, check the named primary and contingent beneficiaries, update anything that’s stale.

2. Payable-on-death (POD) bank accounts

A POD designation on a checking or savings account names a beneficiary who can claim the account directly after death by showing the death certificate. No probate, no waiting. Michigan banks let you add POD designations for free.

POD designations work particularly well for operating cash accounts your family will need fast to cover funeral and immediate expenses.

3. Transfer-on-death (TOD) brokerage accounts

The same idea applied to investment accounts. Michigan brokerages (Fidelity, Schwab, Vanguard, and most others) let you add TOD beneficiaries to taxable brokerage accounts. The account passes to the named beneficiary at death without probate, and the cost basis still gets the step-up that would have occurred through probate.

4. Joint ownership with right of survivorship

Property held jointly with right of survivorship passes automatically to the surviving owner. The most common example: a married couple’s primary home titled as joint tenants with right of survivorship (or, in some states, tenancy by the entirety). The survivor records the death certificate to update title; no probate.

A cautionary note: don’t add an adult child as joint owner just to avoid probate without talking to an estate attorney first. Joint ownership exposes the asset to the joint owner’s creditors and divorces while you’re alive, and can create cost-basis or gift-tax issues.

5. Michigan’s real estate transfer-at-death tool

Michigan does NOT have a statutory transfer-on-death deed for real estate, but Michigan courts widely recognize Lady Bird (enhanced life estate) deeds, which serve a nearly identical function. The owner records a deed reserving a life estate with full lifetime control; on death, the property passes to the named remainder beneficiary outside probate.

6. A funded revocable living trust

For assets that aren’t covered by the above tools — real estate in a state without a TOD deed, business interests, tangible personal property of significant value — a funded revocable living trust handles the rest. Assets titled in the trust skip probate; the successor trustee distributes them privately at death.

A trust earns its setup cost in Michigan when:

  • You own real estate in more than one state (the trust avoids ancillary probate in each).
  • You have a complex family situation (blended family, special-needs child).
  • You want privacy.
  • Your estate is substantial enough that the avoided probate cost exceeds the trust’s setup cost.

For most middle-class Michigan families with simple finances, the first five tools above handle the vast majority of the estate, and a trust is optional. See Will vs. Trust: Which Do You Need? for the honest decision tree.

Michigan’s small estate procedure

If the estate is small enough, Michigan offers a streamlined alternative to full probate:

For decedents dying in 2026, the MCL 700.3982 'Petition and Order for Assignment' small-estate threshold is $53,000 (gross estate after funeral/burial expenses). The statutory base of $50,000 (set by 2024 PA 1) is adjusted annually under MCL 700.1210. A separate Transfer by Affidavit procedure (MCL 700.3983) under the same threshold is available 28 days after death.

For real property specifically, Michigan does not have a statutory transfer-on-death deed, but Lady Bird (enhanced life estate) deeds are widely recognized and routinely used to pass real estate at death outside probate while preserving the owner's lifetime control. Summary administration is also available when estate assets don't exceed allowances, exempt property, costs of administration, funeral, and last-illness medical expenses (MCL 700.3987).

A simple sequence for Michigan residents

  1. Update beneficiary designations on every retirement account, life insurance policy, and POD/TOD account.
  2. Confirm how your house is titled. Married couples should generally use joint tenancy with right of survivorship (or tenancy by the entirety where available). Single owners should consider Michigan’s real-estate transfer tool described above.
  3. Write a basic will to cover anything not handled above, and to name an executor and guardian for minor children.
  4. Sign a financial POA and healthcare directive. These cover incapacity while you’re alive.
  5. Only then evaluate whether you need a trust. Many Michigan families don’t.

Done in this order, most Michigan families can keep 80–95% of their estate out of probate for under $1,500 in legal fees and a few hours of paperwork.

When you should NOT try to avoid probate

A few honest caveats:

  • Probate has legitimate uses. It cuts off creditor claims, provides a public mechanism for resolving disputes, and gives the executor unquestioned legal authority. Total avoidance isn’t always the goal.
  • Small estates already get small-estate procedures. If your estate qualifies for Michigan’s simplified procedure, you don’t need elaborate trust planning.
  • Beneficiary designations override your will. Be careful — outdated designations can send assets to people you no longer intend.
  • Joint ownership has trade-offs. Don’t add joint owners purely to avoid probate without understanding the gift, creditor, and cost-basis implications.

For a deeper dive on the avoidance tools beyond Michigan-specific procedures, see our How to Avoid Probate guide.

This page explains Michigan probate avoidance in general terms as of 2026. It is not legal advice; specific rules and the availability of avoidance tools can change. Confirm current rules with a licensed Michigan attorney. Sources: MCL 700.3719, MCL 700.3715, MCL 700.3721, MCL 600.871, MCL 700.3801, MCL 700.3982, MCL 700.3983, MCL 700.3987, MCL 700.1210.

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