Michigan Revocable Living Trust

It is not legal advice. Verify current requirements with the county probate court, relevant agency, or qualified Michigan counsel before acting.

Michigan revocable living trust planning can help families avoid probate, keep administration private, and name a successor trustee for incapacity or death. The trust only works for assets that are funded into it or directed to it.

This guide provides general Michigan living trust information. Ask Michigan counsel before transferring real estate, retirement benefits, or business interests.

What A Revocable Living Trust Does

A revocable living trust is a document that names a settlor, trustee, successor trustee, beneficiaries, and distribution terms. During life, the settlor often serves as trustee and keeps control. After incapacity or death, the successor trustee follows the trust terms.

The trust can hold real estate, bank accounts, investment accounts, business interests, and personal property. It can also receive assets after death through beneficiary designations or a pour-over will.

Michigan Trust Creation Rules

MCL 700.7402 addresses requirements for creating a trust. MCL 700.7602 addresses revocation or amendment of a revocable trust. A trust should clearly name the trust property, trustee, beneficiaries, and terms.

Signing a trust is not the same as funding it. If a house remains in the individual's name with no nonprobate transfer path, the family may still need Michigan probate.

Funding The Trust

Funding means moving assets into the trust or naming the trust as beneficiary when that fits the plan.

Common funding steps include:

Record a deed transferring real estate to the trustee.
Retitle bank or brokerage accounts.
Assign personal property.
Review beneficiary forms.
Keep a current trust asset list.

Do not move retirement accounts into the trust during life without tax advice. Beneficiary choices can affect income tax and distribution rules.

Trust And Probate Avoidance

Trust-owned assets usually avoid probate because the trustee, not the deceased individual, owns them. That can reduce court filings, delay, and public records.

Probate may still be needed for assets left outside the trust. A pour-over will can direct those assets to the trust, but the will still uses probate for property it controls. Read how to avoid probate in Michigan for the broader title checklist.

Successor Trustee Duties

After death, the successor trustee should secure trust property, review the document, notify beneficiaries when required, value assets, pay proper expenses, keep records, and distribute under the trust terms.

Michigan trustee duties include administration, loyalty, impartiality, control of property, and reporting duties under Michigan Trust Code sections. Use the Michigan trust administration guide before making distributions.

Trust Planning Mistakes

Watch for these problems:

Real estate was never deeded to the trust.
Beneficiary forms conflict with trust terms.
The successor trustee has no asset list.
Digital assets and passwords are missing.
Family members treat a trust like a will substitute but ignore funding.
The plan does not address spouse rights, taxes, or creditor issues.

For document planning basics, read Michigan estate planning basics.

Sources:

Title: MCL 700.7402, Requirements for creation of trust. Publisher: Michigan Legislature. Publication Date: Michigan Compiled Laws current through PA 14 of 2026. URL: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-700-7402
Title: MCL 700.7602, Revocation or amendment of revocable trust. Publisher: Michigan Legislature. Publication Date: Michigan Compiled Laws current through PA 14 of 2026. URL: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-700-7602
Title: MCL 700.7801, Duty to administer trust. Publisher: Michigan Legislature. Publication Date: Michigan Compiled Laws current through PA 14 of 2026. URL: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-700-7801
Title: MCL 700.7814, Duty to inform and report. Publisher: Michigan Legislature. Publication Date: Michigan Compiled Laws current through PA 14 of 2026. URL: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-700-7814

This guide provides general Michigan revocable living trust information. Verify trust drafting, funding, and tax questions with Michigan counsel.