Michigan families work hard to build their legacies, yet many unknowingly make estate planning mistakes that can cost their loved ones thousands of dollars, months of delays, and unnecessary heartache. The good news is that these mistakes are entirely preventable once you know what to watch for.
Estate planning under Michigan law involves more than drafting a few documents. It requires understanding how state statutes interact with your assets, family dynamics, and long-term goals. Whether you’re creating your first estate plan or reviewing one that’s been sitting in a drawer for years, avoiding these five common mistakes is essential to protecting everything you’ve worked to build.
Here’s what Michigan families get wrong most often—and exactly how to fix it.
Mistake #1: Believing a Will Alone Is Enough
Many Michigan residents assume that having a will means their estate plan is complete. This is one of the most widespread misconceptions in estate planning.
A will is an important foundation, but it does not avoid probate. Under Michigan law, any asset that passes through a will must go through the probate court system. According to MCL 700.3101, the probate process formally validates your will, pays outstanding debts, and distributes remaining assets to beneficiaries—all under court supervision.
The probate process in Michigan typically takes six months to over a year to complete. Court filing fees, attorney costs, and personal representative fees can consume 3-8% of the estate’s value. Perhaps most concerning for many families, probate proceedings are public record, meaning anyone can access details about your assets, debts, and who inherited what.
A revocable living trust offers a powerful alternative. Assets held in a properly funded trust pass directly to beneficiaries without court involvement. This means faster distribution, lower costs, and complete privacy for your family.
Many Michigan residents don’t realize that a will and a trust serve different purposes—and the most comprehensive estate plans often include both. A will handles assets not in the trust and names guardians for minor children, while the trust manages the bulk of your estate outside the probate system.
Mistake #2: Failing to Establish Powers of Attorney
Planning for death is important, but planning for incapacity is equally critical—and far more commonly overlooked.
Without a durable financial power of attorney and a healthcare power of attorney (also called a patient advocate designation in Michigan), your family has no automatic legal authority to manage your affairs if you become incapacitated. This means they would need to petition the probate court for conservatorship or guardianship—a process that under MCL 700.5401 can take months, cost thousands of dollars, and require ongoing court oversight.
A durable financial power of attorney under the Michigan Uniform Power of Attorney Act MCL 556.201 et seq. allows someone you trust to pay bills, manage investments, handle real estate transactions, and make financial decisions on your behalf. The word “durable” is critical—it means the authority continues even if you become mentally incapacitated.
Michigan’s patient advocate designation, governed by MCL 700.5506-5515, authorizes your chosen representative to make medical decisions when you cannot. This includes decisions about treatment options, facility placement, and end-of-life care.
In our experience serving Michigan families, the absence of these documents creates some of the most stressful situations we see. A spouse who cannot access bank accounts to pay the mortgage. Adult children fighting over a parent’s medical treatment. These crises are entirely avoidable with proper planning.
The best time to execute powers of attorney is while you’re healthy and have full mental capacity. Once incapacity occurs, the option to create these documents disappears.
Mistake #3: Ignoring Outdated Beneficiary Designations
Here’s a fact that surprises many Michigan families: beneficiary designations on financial accounts often override your will or trust entirely.
Bank accounts, retirement plans like 401(k)s and IRAs, life insurance policies, and accounts with payable-on-death or transfer-on-death designations pass directly to the named beneficiary—regardless of what your estate planning documents say. Under Michigan law, these contractual designations take legal priority.
The problem arises when life changes but beneficiary forms don’t. After a divorce, your ex-spouse may still be listed as the beneficiary on your retirement account. After a death in the family, a deceased parent might still be named on your life insurance policy. After remarriage, your new spouse and stepchildren might be entirely excluded from accounts you assumed they would inherit.
Common misconceptions include believing that a divorce automatically removes an ex-spouse as beneficiary, or that your will or trust can redirect assets held in beneficiary-designated accounts. Neither is true under Michigan law.
A comprehensive estate plan review must include an audit of all beneficiary designations. This means gathering current statements from every financial account, insurance policy, and retirement plan, then verifying that each designation aligns with your overall estate planning goals.
At Boroja, Bernier & Associates, we help Michigan families coordinate their beneficiary designations with their wills and trusts to ensure everything works together as intended.
Mistake #4: Relying on DIY Legal Forms
The internet has made legal forms readily available, but accessibility doesn’t equal effectiveness. DIY estate planning documents frequently fail when families need them most.
Generic online forms cannot account for Michigan’s specific legal requirements. For example, Michigan has particular witness and notarization rules for wills under MCL 700.2502. A will that would be valid in another state may be entirely unenforceable here. Similarly, powers of attorney have specific statutory language requirements that generic forms often miss.
Common problems we see with DIY documents include missing signatures or improper witnessing that invalidates the entire document, incorrect legal terminology that creates ambiguity, failure to address Michigan-specific issues like homestead rights, trust funding errors that leave assets outside the trust and subject to probate, and powers of attorney that lack sufficient authority for the agent to act effectively.
The cost difference between DIY forms and professional estate planning is minimal when compared to the potential consequences. A flawed trust could cost your family tens of thousands of dollars in unnecessary probate. An invalid power of attorney could leave your spouse petitioning the court for authority to manage your care.
Unlike firms that rely on template-based approaches, the estate planning attorneys at Boroja, Bernier & Associates create customized documents tailored to each Michigan family’s specific circumstances, assets, and goals.
Mistake #5: Postponing Estate Planning Until “Later”
The most dangerous estate planning mistake is also the most common: waiting too long to start.
Many people delay estate planning because they believe they’re too young, don’t have enough assets, or simply don’t want to think about difficult topics. But estate planning isn’t just about what happens after death—it’s about protecting yourself and your family right now.
A 35-year-old parent needs guardianship provisions for minor children. A 50-year-old business owner needs succession planning to protect their life’s work. A 65-year-old retiree needs Medicaid planning strategies to protect assets from long-term care costs.
Incapacity can strike at any age through accidents, strokes, or sudden illness. Without an estate plan in place, your family faces immediate crisis with limited options.
The average cost of probate in Michigan ranges from $9,000 to $15,000 or more depending on estate size and complexity. The average cost of a guardianship proceeding when no powers of attorney exist can reach $5,000 to $10,000 in legal fees alone. These expenses are largely preventable with proactive planning.
Estate planning should also be viewed as an ongoing process, not a one-time event. Life changes—marriage, divorce, births, deaths, relocations, significant asset changes—all warrant a review of your existing plan.
Frequently Asked Questions About Estate Planning Mistakes
How much does estate planning cost in Michigan?
Estate planning costs in Michigan vary based on complexity and the documents needed. A basic will alone typically ranges from $800 to $1,000, while a comprehensive estate plan including a revocable living trust, pour-over will, powers of attorney, and healthcare directives generally costs $2,500 to $5,500. This investment is modest compared to the $9,000 to $15,000 or more that probate can cost your family, plus the delays and stress avoided through proper planning.
Can I update my estate plan myself, or do I need an attorney?
While you can make some simple updates like changing beneficiary designations on financial accounts, substantive changes to wills, trusts, and powers of attorney should involve an attorney. Michigan law has specific requirements for amendments and restatements that, if not followed correctly, can invalidate your documents. An estate planning attorney can ensure modifications are legally effective and properly coordinated with your overall plan.
What happens if I die without an estate plan in Michigan?
If you die without a will or trust in Michigan, your assets pass according to the state’s intestacy laws under MCL 700.2101-2114. The court determines who inherits based on a statutory formula that may not reflect your wishes. Your spouse may receive only a portion of your estate, with the remainder going to children or parents. Additionally, without guardianship designations, the court decides who raises your minor children. The intestacy process requires full probate administration with all associated costs, delays, and public disclosure.
How often should I review my estate plan?
Estate planning attorneys recommend reviewing your plan every three to five years, or immediately after major life events. Triggers for review include marriage, divorce, birth or adoption of children, death of a beneficiary or named agent, significant changes in assets, moving to or from Michigan, changes in health status, and changes in tax laws. Regular reviews ensure your plan continues to reflect your wishes and takes advantage of current legal strategies.
What’s the difference between a living trust and a will in Michigan?
A will is a legal document that directs asset distribution after death but requires probate court validation. A living trust holds assets during your lifetime and transfers them directly to beneficiaries upon death without probate involvement. Trusts offer privacy, faster distribution, and potential cost savings. However, wills serve important functions that trusts cannot, such as naming guardians for minor children. Most comprehensive Michigan estate plans include both documents working together.
Protect Your Michigan Family with Proactive Estate Planning
These five estate planning mistakes share a common thread: they’re all preventable with proper guidance and a comprehensive approach. Whether you’re concerned about probate costs, protecting assets from incapacity, ensuring beneficiary designations align with your wishes, or simply getting started with a plan that actually works—the time to act is now.
At Boroja, Bernier & Associates, we help Michigan families throughout the state create estate plans that protect their legacies, avoid costly mistakes, and provide genuine peace of mind. With offices conveniently located in Shelby Township, Troy, Ann Arbor, and Lansing, we make professional estate planning accessible regardless of where you live in Michigan.
To schedule a consultation with the Michigan estate planning attorneys at Boroja, Bernier & Associates, call our law offices at 586-991-7611 to schedule a consultation. We’ll review your current situation, identify potential vulnerabilities, and create a customized plan designed to protect your family for generations to come.
