Estate Planning and Real Estate: What Happens to Your Property When You Pass Away in Michigan

David Manley
Sep 19, 2025
3 min read

Most People Don’t Think About It Until It’s Too Late

If you own real estate in Michigan, you already have an “estate” — whether or not you’ve written a will. And if you haven’t planned for what happens next, state law will decide for you.

That’s why understanding how Michigan treats real estate after death is critical — not just for wealth preservation, but for your family’s peace of mind.

What Is Probate, and Why Does It Matter?

Probate is the legal process where a court confirms who inherits your property and ensures debts are paid.

In Michigan, probate is required when:

A property is titled solely in the deceased person’s name, and
There’s no legal mechanism (like a trust or joint ownership) transferring it automatically.

Key Fact: Probate can take 6–12 months, and your home cannot be sold during that time unless a court authorizes it.

Joint Ownership: The Simplest Transfer Method

If property is owned by two or more people with rights of survivorship, ownership automatically passes to the surviving owner(s) upon death — skipping probate entirely.

Common forms include:

Joint Tenancy with Rights of Survivorship (JTWROS)
Tenancy by the Entirety (for married couples only)

Example: If John and Mary own their Muskegon home as Tenants by the Entirety, and John passes away, Mary instantly becomes the sole owner.

Transfer-on-Death (TOD) or Lady Bird Deeds

Michigan allows a unique tool called a Lady Bird Deed (enhanced life estate deed).

It lets you:

Keep full control of your property while alive,
Name a beneficiary to automatically inherit it after your death, and
Avoid probate completely.

It’s one of the simplest, most powerful estate tools in Michigan real estate — especially for single homeowners or seniors.

Example: You deed your Grand Haven condo to yourself “for life,” and to your daughter upon death. You can still sell or refinance anytime, and the title transfers instantly later without court involvement.

Using a Trust for Real Estate

A revocable living trust is another way to bypass probate and manage complex estates.

By titling your property in the name of the trust, you maintain control while alive and designate trustees to manage or distribute it after death.

Benefits include:

Privacy (trusts aren’t public record)
Probate avoidance
Streamlined management of multiple properties

Michigan Note: When transferring real estate into a trust, make sure the property tax homestead exemption remains intact — your attorney can file an affidavit with the local assessor.

What Happens If You Do Nothing

If you die without a will (known as intestate), Michigan’s Estates and Protected Individuals Code (EPIC) determines who inherits your property — typically your spouse, then children, then extended relatives.

The process can create delays, disagreements, and legal fees that reduce your estate’s value.

Steps Every Michigan Homeowner Should Take

Review your title – Know exactly how your property is held.
Update your will – Include clear property instructions.
Consider a Lady Bird Deed or trust – to skip probate.
Name beneficiaries – for financial and real estate assets.
Keep everything recorded and notarized.

Pro Tip: Always record deeds properly at your county Register of Deeds — unrecorded transfers can invalidate your intentions.

Final Thoughts

Estate planning isn’t just for the wealthy — it’s for anyone who owns a home and wants to make life easier for their loved ones.

If you’re unsure how your Michigan property would transfer or want to explore Lady Bird Deeds or trusts, I can connect you with estate attorneys and title professionals who specialize in real estate-based planning.

Because smart legacy planning isn’t about death — it’s about direction.