Michigan has no state estate tax and no inheritance tax, so your heirs owe nothing to the state on what they receive. A valid will must be in writing, signed, and witnessed by two people under MCL 700.2502, though Michigan also recognizes handwritten wills without witnesses under certain conditions. Without a will, Michigan's intestacy statute decides who inherits.
Whether you are in Detroit, Grand Rapids, or a small town Up North, a Michigan estate plan is the difference between your assets going where you intend and a probate court applying a one-size-fits-all formula. This guide covers the tax picture, the will rules, and where people get tripped up.
Does Michigan Have an Estate or Inheritance Tax?
No. Michigan repealed its estate tax when the related federal credit was eliminated, and the state has no inheritance tax on beneficiaries. Your estate may still owe federal estate tax if it exceeds the federal exemption, but that threshold is high enough that few Michigan families are affected. This makes probate avoidance and clear beneficiary designations the more relevant planning goals for most Michigan households, rather than tax minimization. The Michigan Department of Treasury confirms the state's inheritance tax dropped to zero once the related federal credit was phased out, and it only ever applies today to deaths that occurred on or before September 30, 1993.
How to Make a Valid Will in Michigan
Under MCL 700.2502, a Michigan will is valid if it is in writing, signed by the testator (or by another individual in the testator's conscious presence and at the testator's direction), and signed by at least two individuals who each witnessed the signing or the testator's acknowledgment of the will or the signature. Michigan also recognizes a will as valid, even without witnesses, if it qualifies as holographic: dated, with the signature and the document's material portions in the testator's own handwriting. Relying on the holographic exception is riskier than a properly witnessed will, since it depends entirely on proving the handwriting is genuine.
writing your own will through a guided, witnessed process removes the uncertainty a handwritten-only document can create during probate.
What Happens Without a Will in Michigan
Dying intestate in Michigan means MCL chapter 700 decides who inherits. A surviving spouse generally receives the entire estate only if the decedent has no surviving descendants or parents from outside the marriage; otherwise the estate is split under a statutory formula between the spouse and descendants or parents. Unmarried individuals without children typically see the estate pass to parents, then siblings, under a defined order of succession. A court also names a guardian for minor children without input from the family if no will exists.
Wills, Trusts, and Probate in Michigan
A will still requires probate in Michigan, where the executor (called a personal representative) files the will, notifies heirs and creditors, and submits an inventory of assets before the court issues Letters of Authority. A revocable living trust can bypass probate entirely for the assets placed inside it, and is also useful for planning around incapacity, since a successor trustee can step in without court involvement. Reading the difference between a will and a trust helps determine whether a trust is worth the added cost and maintenance for your specific estate.
A Worked Example: A Second Marriage
Consider a Michigan resident in a second marriage with children from a first marriage. Without a will, Michigan intestacy could direct a meaningful share of the estate to the surviving spouse rather than the children from the first marriage, which may not match the person's actual intent. A will, or a trust that provides for the spouse during their lifetime with the remainder going to the children afterward, lets a blended family plan for both generations instead of leaving the outcome to a statutory formula built for a simpler family structure.
Financial and Health Care Powers of Attorney
A durable power of attorney lets a trusted agent manage your finances if you become unable to, without a court-appointed conservatorship. A Patient Advocate Designation, Michigan's version of a health care power of attorney, names someone to make medical decisions on your behalf, and a living will documents your treatment preferences for end-of-life care. Review both after a divorce, remarriage, or move, since an outdated designation can create exactly the confusion these documents exist to prevent.
Common Mistakes to Avoid
- Relying on a handwritten will without confirming it meets Michigan's holographic will standard
- Forgetting that a will alone does not avoid probate
- Leaving outdated beneficiary designations on retirement accounts or life insurance
- Not updating an estate plan after a second marriage or blended family situation
- Failing to name a successor trustee if using a revocable living trust
FastWill's online will package builds a Michigan-compliant, properly witnessed will from the start, and you can add a trust or powers of attorney as your plan grows. Compare plans and pricing to see what fits your household.
Digital Assets and Ongoing Plan Reviews
A Michigan estate plan should also address digital assets, including online accounts, cryptocurrency, and cloud-stored photos, since a personal representative cannot access these without legal authority or login instructions. Keep a separate, securely stored list of accounts rather than embedding passwords directly in the will, which becomes a public record during probate. Review your Michigan plan after a marriage, divorce, home purchase, or the birth of a child, since each of these events can change who should serve as executor, guardian, or agent under your powers of attorney.
Frequently Asked Questions
Does Michigan have an estate or inheritance tax?
No. Michigan has no state estate tax and no inheritance tax on beneficiaries.
How many witnesses does a Michigan will need?
Two witnesses who each saw the testator sign, or acknowledge the will or signature, per MCL 700.2502.
Are handwritten wills valid in Michigan?
Yes, if they qualify as holographic: dated, with the signature and material portions in the testator's own handwriting. This is riskier during probate than a properly witnessed will.
What happens to a blended family's estate without a will in Michigan?
Intestacy statutes may direct a share of the estate to a surviving spouse that a decedent did not intend, potentially reducing what children from a prior relationship receive.
Does a will avoid probate in Michigan?
No. A will directs how probate assets are distributed but the estate still goes through the probate court. Only assets in a properly funded trust, or that pass by beneficiary designation, skip probate.
