How to Avoid Probate on a House in Michigan with Deeds or Beneficiaries

Understanding Your Options for Avoiding Probate in Michigan

Probate is the legal process used to settle a deceased person’s estate. In Michigan, this includes validating the will (if there is one), identifying heirs, paying off debts and taxes, and distributing assets.

While probate is sometimes necessary—especially when someone dies without a will—it’s often something families try to avoid when it comes to real estate.

Why? Because probate can be slow, public, and expensive. It typically involves court filings, legal fees, and time delays that can stretch from several months to over a year. If multiple heirs are involved, or if there's no clear plan in place, the process can become even more complicated. In some cases, families may be unable to sell or refinance a house until probate is complete.

By planning ahead and using available legal tools, Michigan property owners can bypass probate entirely for their real estate.

That means a faster, smoother transfer of ownership to the people they care about—with fewer court delays, less paperwork, and lower costs.

Lady Bird Deeds (Enhanced Life Estate Deeds)

A Lady Bird Deed, also known as an enhanced life estate deed, is a powerful legal tool that Michigan homeowners can use to keep their property out of probate. It allows you to transfer your home to a beneficiary upon your death—without giving up control of the property while you're still alive.

Here’s how it works: You, as the property owner, sign a deed that names someone to inherit the home when you pass away. But unlike a traditional life estate, a Lady Bird Deed lets you retain full control during your lifetime.

That means you can still live in the house, sell it, refinance it, or even change the beneficiary if your plans change. After you die, ownership transfers automatically to the person named on the deed—skipping probate completely.

✅ Key Benefits of a Lady Bird Deed:

Avoids probate on the home entirely.
Retains lifetime control, allowing the owner to make changes or sell the property.
May protect against Medicaid estate recovery (in certain cases).
Cost-effective and simple, especially compared to setting up a trust.

⚠️ Important Considerations:

The deed must be correctly drafted and recorded with the county register of deeds to be legally valid.
It may not be ideal in situations involving multiple beneficiaries or when property division is expected to be complex.
It does not protect the property from long-term care planning risks unless combined with other strategies.

To learn more, visit the State Bar of Michigan’s article on Lady Bird Deeds or check out the Michigan Legal Help guide on property transfers after death.

Why Michigan Doesn’t Use TOD Deeds for Real Estate

In many states, homeowners can use Transfer-on-Death (TOD) deeds to name a beneficiary who will receive their real estate automatically when they die—no probate necessary. However, Michigan law does not currently allow TOD deeds for real estate.

That means Michigan property owners need to use alternative methods—like Lady Bird Deeds or trusts—to avoid probate on a home.

While TOD deeds aren’t recognized for real estate in Michigan, Payable-on-Death (POD) and Transfer-on-Death (TOD) designations can still be incredibly useful for non-real estate assets, such as:

Bank accounts
Brokerage accounts
Retirement plans and IRAs
Certificates of deposit (CDs)

These designations allow you to name a beneficiary who automatically receives the asset after your death, with no court involvement. They’re simple to set up and often only require a form from your bank or financial institution.

Even though you can’t use a TOD deed for your house in Michigan, understanding which tools do apply—and how to combine them—is a big step toward building a clear, probate-free plan for your estate.

To explore more on Michigan's stance regarding TOD deeds and probate alternatives, visit Nolo’s guide to avoiding probate in Michigan or Michigan Legal Help’s page on property transfers after death.

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Joint Ownership with Rights of Survivorship

Another way Michigan residents can avoid probate on real estate is by holding title as joint tenants with rights of survivorship. This legal arrangement means that when one co-owner dies, their share of the property automatically transfers to the surviving co-owner(s)—no probate needed.

This method is often used by married couples, but it can also apply to siblings, adult children, or other co-owners. To be valid, the deed must specifically include language that indicates “rights of survivorship.” Without that, the property may instead pass through probate as part of the deceased person’s estate.

✅ Benefits of Joint Ownership with Rights of Survivorship:

Avoids probate automatically upon death of a co-owner.
Simple to set up—usually just requires a properly worded deed.
Offers shared access and responsibility during each co-owner’s lifetime.

⚠️ Risks and Considerations:

Each co-owner has equal rights to the property, which can cause complications if disputes arise.
The property may be subject to the creditors of any co-owner—not just the original owner.
Once the property is jointly titled, it can’t be revoked or changed without the other owner's agreement.
If a co-owner dies and the survivor remarries or changes their estate plan, the property may pass to someone unexpected.

Joint ownership is a useful tool for avoiding probate, but it requires careful thought—especially if your long-term plans include multiple heirs or changing family dynamics.

For an overview of how joint tenancy works within estate planning, refer to University of Michigan’s Estate Planning Guide on Joint Ownership.

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Living Trusts as a Probate Avoidance Tool

A revocable living trust is one of the most versatile and reliable tools for avoiding probate in Michigan—especially when a homeowner wants more flexibility or has a complex estate.

Unlike a Lady Bird Deed or joint ownership, a trust can manage multiple properties, bank accounts, and other assets in a single plan.

When you create a living trust, you transfer ownership of your property into the trust while you're still alive. You remain in control as the trustee and can make changes, sell property, or dissolve the trust at any time.

After you pass away, a successor trustee takes over and distributes your assets directly to your beneficiaries—without the need for probate court.

✅ Key Advantages of a Living Trust:

Avoids probate for all assets titled in the trust.
Keeps your affairs private—unlike probate, which becomes public record.
Allows more detailed planning, especially for multiple heirs or special situations.
Works in combination with Lady Bird Deeds or other tools to create a layered estate plan.

⚠️ Important Considerations:

Requires upfront effort to create and fund the trust.
If assets are not correctly transferred into the trust, they may still go through probate.
Some people will still need a simple will (called a "pour-over will") to catch anything left out.

For a detailed explanation of how trusts work, explore this educational guide from FindLaw – Types of Trusts in Estate Planning or review the Michigan court system’s estate planning resources.

If you want to learn more about combining trusts with other strategies, you may also find the internal guide How to Sell Your Share of an Inherited House in Michigan helpful in understanding how real estate transitions can be structured between heirs.

Gloria B. - Clinton Township, Michigan

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Conclusion – Planning Ahead Saves Time and Stress

Avoiding probate in Michigan isn’t just about skipping court—it’s about protecting your loved ones from unnecessary delays, legal fees, and stress during an already emotional time.

By using tools like Lady Bird Deeds, revocable living trusts, joint ownership, and beneficiary designations on non-real estate assets, you can ensure a smoother, more private transfer of property.

Each of these strategies has its strengths, and in many cases, a combination of them may provide the most complete protection.

For example, a homeowner might place a bank account in a POD designation, transfer their home using a Lady Bird Deed, and create a trust to handle the remainder of the estate—all while keeping control during their lifetime.

However, it’s important to note that probate avoidance isn’t one-size-fits-all. Your decision should reflect your specific goals, the type of property you own, your family dynamics, and any concerns about creditors, taxes, or disputes.

That’s why many Michigan residents choose to speak with an experienced estate planning advisor to create a plan that fits their needs.

To continue learning about probate and inheritance issues in Michigan, visit the internal guide:Selling Inherited Property with Siblings in Michigan, or explore options for selling your deceased parents’ house without probate.

For more personalized help or to explore cash sale options for inherited property, visit the Dennis Buys Houses homepage or click the link below to contact Dennis directly.

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Michelle L. - Michigan

“Thanks for buying my Mother’s home. It was a big help that you were able to buy it without us having to clean it out and get it ready to sell. My mother had accumulated lots of stuff and after the stress of her long illness I was exhausted and I dreaded dealing with all of it. I also liked it that you gave me a very fair price for the home. I’m on a fixed income and that really helped a lot.”

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