Estate Planning in Michigan

Married with children (same marriage)

If all of the decedent's surviving descendants are also descendants of the surviving spouse, and the surviving spouse has no other descendants, the spouse receives the first $150,000 (adjusted for inflation) plus one-half of the balance. Children split the rest. If the surviving spouse also has descendants from a prior relationship, the spouse receives the same dollar amount plus one-half the balance.

Married with children from a prior relationship

If one or more of the decedent's surviving descendants are not descendants of the surviving spouse, the spouse receives the first $150,000 (adjusted for inflation) plus one-half the balance. If none of the decedent's descendants are also descendants of the surviving spouse, the spouse receives the first $100,000 (adjusted for inflation) plus one-half the balance. Children split the remainder.

Married, no children

If no parents survive, the spouse inherits the entire estate. If one or both parents survive, the spouse receives the first $150,000 (adjusted for inflation) plus three-quarters of the balance. Parents take the rest.

Single with children

Your children inherit everything equally by representation.

Single, no children

Your parents inherit equally. If no parents survive, siblings inherit by representation. The chain continues through grandparents, aunts, uncles, and cousins.

What makes a will valid

A formal will must be in writing, signed by the testator (or in the testator's name by another person in the testator's conscious presence and at the testator's direction), and signed by at least two witnesses within a reasonable time after witnessing the signing or the testator's acknowledgment. A holographic will is valid without witnesses if dated, signed, and material portions are in the testator's handwriting.

What people think

That notarization makes a will valid, or that a handwritten note left in a desk drawer is automatically a valid holographic will.

What actually happens

Notarization is irrelevant to will validity. Holographic wills must meet specific requirements, and proving them in probate requires handwriting evidence. Michigan's MCL 700.2503 provides a broad safety net for documents that don't meet formal requirements — but relying on judicial discretion is far riskier than executing a properly witnessed will with a self-proving affidavit.

Common failure

Failing to obtain a self-proving affidavit. Michigan allows it, and it eliminates the need for witness testimony at probate. Without one, witnesses must be located years later — and if they've moved, died, or become unavailable, the process becomes significantly harder.

When a trust is better

When the estate includes multiple types of assets beyond real property (which a Lady Bird Deed can handle), when privacy is a priority, when managing distributions for minor children over time, or when the estate plan involves complex conditions or staged distributions.

Execution checklist

1. Sign the will in front of two competent witnesses (age 18+)
2. Have both witnesses sign within a reasonable time — immediately is best practice
3. Execute a self-proving affidavit (notarized) or a certification under penalty of perjury
4. If using a holographic will, ensure it is dated, signed, and that material provisions are in your own handwriting
5. Store the original securely — the probate court requires the original for admission

What it does

Grants authority to a named agent (attorney-in-fact) to manage financial, legal, and property affairs on your behalf.

Key rule

Michigan adopted the Uniform Power of Attorney Act effective July 1, 2024, replacing the prior EPIC provisions. A durable POA must include language stating it survives incapacity, must be signed and dated by the principal, and must be either witnessed by two people (neither of whom is the agent) or acknowledged before a notary. POAs executed under the old statute remain valid but may face increased scrutiny.

Real-world friction

Financial institutions may reject POAs they consider outdated, non-standard, or unfamiliar. Michigan law provides remedies for unreasonable refusal, but enforcement requires legal action. Using the current statutory form and keeping the document recently executed reduces rejection risk.

Common mistake

Confusing a financial POA with a patient advocate designation. They are separate documents with separate authority. The financial POA handles money and property; the patient advocate designation handles medical and mental health decisions.

What it covers

Your preferences for medical treatment, mental health treatment, end-of-life care, and the designation of a patient advocate who can make healthcare decisions if you become unable to participate in those decisions.

What's different

Michigan uses the term 'Designation of Patient Advocate' rather than 'healthcare power of attorney' or 'advance directive.' The designation must include a statement that the authority is exercisable only when the patient cannot participate in decisions. The advocate must sign a detailed acceptance containing specific statutory statements before the designation becomes effective. Without this signed acceptance, the advocate has no legal authority — even in an emergency.

Execution requirements

Must be signed by the patient, dated, executed voluntarily, and witnessed by two people. Witnesses cannot be the patient's spouse, parent, child, grandchild, sibling, presumptive heir, known devisee, physician, patient advocate, or an employee of a health insurer, healthcare facility, home for the aged, or community mental health program where the patient resides or receives treatment.

Common misunderstanding

Not knowing that the patient advocate must sign a detailed acceptance before the designation takes effect. Many families discover this requirement during a crisis — after the patient has already become incapacitated — at which point it may be too late to obtain the acceptance and the designation cannot be implemented.

When required

When assets are held solely in the decedent's name without a beneficiary designation, survivorship rights, Lady Bird Deed, or trust.

What makes Michigan different

Michigan's EPIC framework offers multiple probate pathways, including supervised administration (full court oversight), unsupervised administration (minimal oversight — the default), and informal proceedings. The state also provides two small estate alternatives and summary administration for qualifying estates. Michigan's Lady Bird Deed provides a powerful probate avoidance tool for real property that is not available in most states. And MCL 700.2503 gives courts unusually broad power to admit defective or informal documents as valid wills.

Probate paths

What people get wrong

Assuming probate is always required for the family home. A Lady Bird Deed transfers real property directly to a named beneficiary at death — completely outside probate. Unlike a trust, it costs only a few hundred dollars to prepare and record, the owner retains full control during life, and it provides Medicaid estate recovery protection. Michigan does not recognize transfer-on-death (TOD) deeds for real property — the Lady Bird Deed fills this gap.

When a trust is useful

When the estate includes multiple asset types beyond real property, when privacy is a priority (wills become public record in probate), when managing distributions for minor children over time, when protecting assets for a beneficiary with special needs, or when the estate plan involves complex conditions.

When a trust is unnecessary

When the primary asset is a home (a Lady Bird Deed handles this at a fraction of the cost), when financial accounts have beneficiary designations, and when the estate is simple enough for the small estate or summary administration procedures. A trust adds cost and complexity that may not be justified for straightforward estates.

Key mistake

Creating a trust but not retitling assets into it. A trust only controls assets that have been transferred into its name. Unfunded trust assets still go through probate. In Michigan, combining a funded Lady Bird Deed for real property with beneficiary designations on financial accounts can achieve probate avoidance without the cost of a full trust.

Not using a Lady Bird Deed for the family home

Michigan is one of the few states that recognizes the Lady Bird Deed — an enhanced life estate deed that transfers property at death without probate, preserves the owner's full control during life, and avoids Medicaid estate recovery. For many Michigan families, this single document eliminates the need for a trust.

Failing to obtain the patient advocate's signed acceptance

Michigan requires the patient advocate to sign a detailed acceptance statement containing specific statutory language before the designation becomes effective. Without this signed acceptance, the advocate cannot act — even if named in the document and even in an emergency.

Relying on a holographic will for a complex estate

Holographic wills are valid in Michigan but are harder to prove in probate, more vulnerable to challenge, and often lack the precision needed for complex estates. A properly witnessed will with a self-proving affidavit is almost always the better choice.

Not understanding the inflation-adjusted intestacy thresholds

Michigan's intestacy dollar amounts are adjusted annually for cost of living. The base $150,000 statutory figure may be significantly higher in current dollars — meaning the surviving spouse's share is larger than the statute appears to indicate.

Confusing a Lady Bird Deed with a traditional life estate deed

A traditional life estate deed surrenders the owner's right to sell, mortgage, or revoke the transfer. A Lady Bird Deed retains all of these rights — the owner maintains complete control until death. This distinction is critical and affects property taxes, Medicaid eligibility, and the owner's flexibility.

Not updating estate planning documents after the July 2024 POA statute change

Michigan adopted the Uniform Power of Attorney Act effective July 1, 2024, replacing the prior EPIC provisions. Older POAs remain valid, but using the new statutory framework reduces third-party resistance and ensures compliance with current law.

Assuming Michigan recognizes transfer-on-death deeds

Michigan does not recognize TOD deeds for real property. The Lady Bird Deed fills this gap, but property owners who are familiar with TOD deeds from other states may be surprised to learn they are not available in Michigan.