Disclaimer

This is general information and not legal advice. I am not a lawyer. For tailored legal guidance about your situation, contact a licensed Michigan attorney.

Detailed Answer

In Michigan, whether an asset goes through probate after someone dies depends on how the asset is titled and whether an enforceable beneficiary designation exists. A will controls only assets that pass through probate. Assets that already have a valid nonprobate transfer mechanism — such as a named beneficiary, joint ownership with right of survivorship, payable-on-death (POD) or transfer-on-death (TOD) designation, or assets held in a properly funded trust — generally pass outside probate.

1) Wills and their limits

A properly executed will in Michigan sets out who should receive any assets that are part of the deceased’s probate estate. But a will does not override beneficiary designations or title-based transfer methods. For example, if a retirement account or life insurance policy names a specific beneficiary, that account will typically go directly to the named beneficiary even if the will directs those assets elsewhere.

Because a will only covers probate assets, using a will alone will not prevent probate if you own real estate, bank accounts, or other assets solely in your name without beneficiary designations or joint ownership.

2) Beneficiary designations (retirement accounts, life insurance, annuities)

Designating beneficiaries on retirement accounts (e.g., IRAs, 401(k)s), life insurance policies, annuities, and many employer plan assets is one of the most straightforward ways to avoid probate for those particular assets. The contract or plan paperwork sets the rules: the plan administrator or insurer pays the named beneficiary directly at death. That payment typically bypasses probate.

Key points:

• Name primary and contingent beneficiaries to avoid confusion if a primary beneficiary predeceases you.
• Keep beneficiary forms current after major life changes (marriage, divorce, births, deaths).
• For retirement accounts, understand tax and distribution rules that affect beneficiaries.

3) Bank accounts and POD/TOD designations

Many Michigan banks allow payable-on-death (POD) or transfer-on-death (TOD) designations on deposit accounts. When a POD/TOD payee is named, the bank pays that person directly on the account holder’s death and the funds typically do not go through probate. Check each bank’s forms and confirm how they are titled.

4) Joint ownership with right of survivorship

Accounts, titles, or real estate held jointly with right of survivorship pass automatically to the surviving co-owner(s) at death and usually avoid probate. This can be convenient, but it has trade-offs:

• Joint ownership gives the co-owner immediate ownership rights during the owner’s life (including access to funds).
• It can create unintended gift or tax consequences and can complicate later estate planning.

5) Revocable living trusts (RLTs)

A properly drafted and funded revocable living trust lets you control distribution of assets while avoiding probate for assets that are retitled into the trust. You (and your partner) can be trustees during your lifetime and name successor trustees and beneficiaries for after your deaths.

Important trust considerations:

• Real estate and other assets must be retitled into the trust name during your lifetime. If you forget to fund the trust, those assets may still need probate.
• Trusts can be more expensive up front than a will, but they often simplify transfer, avoid probate court delays, and increase privacy.

6) Real estate and Michigan specifics

Real estate typically transfers at death either through probate (if it’s solely in the deceased’s name), by survivorship (if held jointly with right of survivorship), or under the terms of a deed (for example, if the property has been deeded into a trust). Some states permit specialized “transfer-on-death” deeds for real estate; whether and how that option is available in Michigan changes over time and may depend on local practice. Because real property rules can be technical and because deeds must be prepared and recorded correctly to avoid future disputes, check with the county register of deeds or a Michigan attorney before relying on a deed-based method to avoid probate.

7) Which method is best?

The right approach for a family depends on the mix of assets, the size of the estate, family dynamics, tax considerations, and costs. A typical practical plan uses a combination:

• Wills as a safety net to specify what should happen to probate assets and to name guardians for minor children.
• Beneficiary designations on retirement accounts and life insurance.
• POD/TOD for bank accounts where available and appropriate.
• A revocable living trust to hold real estate and other assets you want to pass without probate, especially if privacy or streamlined administration is a priority.

8) Common pitfalls to avoid

• Failing to update beneficiary forms after marriage, divorce, or the birth of children.
• Leaving significant assets out of a trust (not properly funding the trust).
• Assuming a will controls assets that have beneficiary designations or joint ownership.
• Using joint ownership merely to avoid probate without understanding the control and gift consequences.

9) Where to find Michigan-specific rules and forms

For general information about probate and probate court services in Michigan, see the Michigan Courts probate information page: https://www.michigan.gov/courts/services/probate.

To read Michigan statutes on estates and related rules, search the Michigan Legislature site (Michigan Compiled Laws, chapter on estates and protected individuals): https://www.legislature.mi.gov. If you plan to prepare documents yourself, confirm statutory requirements for wills, deeds, trusts, and beneficiary forms by consulting the relevant MCL provisions or a lawyer.

Helpful Hints

• Start with a clear asset inventory: list bank accounts, retirement plans, life insurance, brokerage accounts, real estate, vehicle titles, and digital accounts. Note how each asset is titled and whether a beneficiary is named.
• Verify beneficiary designations directly with the plan administrator or insurer — account paperwork and online portals often show current beneficiaries.
• Name contingent beneficiaries so assets have a backup plan if a primary beneficiary dies first.
• If you want to avoid probate for real estate, consider a trust (retitle property into the trust) or consult whether Michigan recognizes an appropriate TOD/deed option; get help from a real property attorney before recording any deed.
• Keep an up-to-date will even if you use beneficiary designations and trusts. A will can act as a “catch-all” for assets that were not otherwise transferred.
• Talk to a Michigan estate-planning attorney when your estate is sizable, when you have blended-family issues, or when tax, creditor, or Medicaid planning is a concern.
• Review your plan after major life events (marriage, divorce, births, deaths, retirement, sale/purchase of property).
• Keep copies of signed beneficiary forms, trust documents, deeds, and the most recent will in a safe place and tell your successor trustee or executor how to find them.