To make a living trust in Michigan, you sign a written trust instrument that meets the requirements of the Michigan Trust Code, naming a trustee with real duties and identifiable beneficiaries, then retitle your assets into the trust so it actually controls them instead of just existing on paper.
Key Takeaways
- Michigan's trust creation requirements are codified at MCL 700.7402, part of the Michigan Trust Code within the Estates and Protected Individuals Code.
- A trust protects only what you retitle into it. Unfunded trusts still leave assets in probate.
- Real estate moved into a Michigan trust requires a new deed recorded with the register of deeds in the county where the property sits.
- Most Michigan residents pair a living trust with a pour-over will, financial power of attorney, and patient advocate designation.
What Is a Living Trust Under Michigan Law?
A living trust, or inter vivos trust, is an arrangement you create during your life to hold title to property for your own benefit and later for named beneficiaries, managed by a trustee. Michigan governs trust creation through the Michigan Trust Code, part of the Estates and Protected Individuals Code found at MCL Chapter 700, Part 4.
The main reason Michigan residents set up a living trust is to avoid probate for real estate, vehicles above the small estate threshold, and financial accounts titled only in their own name.
Who Has Legal Capacity to Create a Michigan Trust?
You need the same general capacity Michigan expects for other legal documents: understanding what you own, who your natural beneficiaries are, and what effect the trust has. If there is any doubt, for instance with an older parent recovering from illness, document capacity with a contemporaneous medical evaluation rather than assuming it will hold up if challenged later.
What Does Michigan Law Require to Create a Valid Trust?
MCL 700.7402, titled Creating trust; requirements, provides that a trust is created only if the settlor has capacity, intends to create the trust, the trust has a definite beneficiary or falls under a charitable, animal care, or noncharitable purpose exception, and the trustee has duties to perform. The statute also requires that the same person not be the sole trustee and sole beneficiary. For a general explanation of trust law concepts beyond Michigan specifically, see Cornell Law School's Legal Information Institute.
In practical terms, this means your Michigan trust should be one signed written document naming you as settlor, your initial and successor trustees, and your beneficiaries with their shares clearly described.
How Do You Fund a Living Trust in Michigan?
Funding means legally transferring ownership of your assets to the trust.
- Real estate: a new deed naming the trustee, signed and recorded with the register of deeds in the county where the property is located.
- Bank and brokerage accounts: retitled in the trust's name using your institution's own transfer forms.
- Vehicles: Michigan Secretary of State has its own procedure for titling vehicles to a trust.
- Business interests: assignment documents specific to the entity structure.
Deed recording fees, real estate transfer tax exemptions, and any homestead exemption interaction can differ by county, so confirm the process with your county register of deeds before you record anything. For more detail, read how to fund a trust.
Who Should You Name as Successor Trustee?
The successor trustee manages and eventually distributes trust property if you become incapacitated or after you die, without probate court supervision. Choose someone dependable and reasonably organized rather than defaulting to birth order, and always name a backup. See how to choose a successor trustee for more on making this decision.
Can a Michigan Living Trust Be Revoked?
Yes. Unless the trust instrument specifically states otherwise, Michigan trusts are presumed revocable, so you can amend or cancel yours at any point while you have capacity. If you are deciding between a revocable and irrevocable structure, revocable vs irrevocable trust explains the tradeoffs.
Do You Still Need a Will With a Michigan Living Trust?
Yes. A pour-over will catches any asset you forget to retitle, and it is still the only document that names a guardian for minor children. If you have not settled on a trust versus a will yet, do I need a trust or just a will walks through the decision.
What Mistakes Should You Avoid When Making a Michigan Living Trust?
Most problems with a Michigan living trust trace back to a handful of avoidable mistakes rather than anything wrong with the trust document itself.
- Signing the trust and then never retitling anything, which leaves every asset in probate anyway.
- Forgetting to update beneficiary designations on retirement accounts and life insurance, which pass outside the trust regardless of what the trust says.
- Naming a successor trustee without naming a backup, so the plan stalls if that person cannot serve.
- Buying new real estate or opening new accounts after signing the trust and never retitling those either.
- Assuming a living trust replaces a will entirely, when you still need a pour-over will and guardianship nominations for minor children.
- Choosing a trust template that does not match your actual assets, then hoping it works out instead of confirming it fits your situation.
How Much Does a Living Trust Cost in Michigan?
Cost depends mainly on whether you hire an attorney, use a DIY platform, or work with a hybrid service, plus how much real estate and how many accounts you need to retitle. Attorney-drafted trusts in Michigan typically run higher than a self-directed platform, largely because of the time spent on custom drafting and funding guidance rather than the document itself. Whatever route you choose, budget separately for county recording fees on any real estate deed, since those are set locally and are not part of the drafting cost. Ask any estate planning service for a clear, itemized breakdown before you sign, so you know exactly what is included and what is billed separately.
Frequently Asked Questions
Does a Michigan living trust avoid probate?
Only for the assets you actually retitle into the trust. Anything still titled in your individual name at death goes through Michigan probate.
Does Michigan require a trust to be notarized?
The trust document itself is not required by statute to be notarized, though any deed transferring real property into the trust must be properly executed and recorded.
Can I be my own trustee in Michigan?
Yes, most people serve as their own initial trustee and keep full control of assets while capable, with a named successor trustee to take over later.
How long does it take to fund a Michigan living trust?
It depends on how many assets you own and how many institutions are involved. Real estate deeds and account retitling can take anywhere from a few days to several weeks.
What happens to a Michigan trust if I move to another state?
The trust generally remains valid, but you should have it reviewed after a move since funding steps, recording rules, and state law differ.
Do I need to update my Michigan living trust after a major life event?
Yes. Marriage, divorce, a new child, a significant change in assets, or moving to a new home are all good reasons to review and, if needed, amend your trust rather than waiting for a scheduled review.
Ready to stop putting it off? FastWill's trust package walks you through the settlor, trustee, and beneficiary steps in the right order.
