Many Michigan residents wonder whether a will is sufficient or if a trust offers better protection. We assist clients throughout Oakland County, Macomb County, and Southeast Michigan in understanding these options and selecting the best fit for their needs. Wills and trusts serve distinct purposes and provide different benefits. Michigan law determines estate administration, property transfers after death, and incapacity planning. Understanding these distinctions is essential when structuring an estate plan. We evaluate each client’s assets, family situation, and long-term goals before recommending a will, trust, or a combination of both.
Understanding How Wills Work Under Michigan Law
A will is a legal document that outlines how assets should be distributed after death. In Michigan, wills are governed by the Michigan Estates and Protected Individuals Code (EPIC), specifically Michigan Compiled Laws §700.2501 et seq. A properly executed will allows individuals to name beneficiaries, appoint a personal representative, and designate guardians for minor children.
Under Michigan law, a will must generally be signed by the person creating the will and witnessed by at least two individuals, as outlined in MCL §700.2502. If these legal requirements are not met, the will may be challenged or deemed invalid. When a person dies with a valid will, the estate typically goes through probate court. Probate is the legal process used to validate the will, identify assets, pay debts, and distribute property to beneficiaries.
Probate proceedings in Michigan take place in the county probate court where the deceased resided. For example, estates in Troy are handled by Oakland County Probate Court, while those in Shelby Township are managed by Macomb County Probate Court.
While probate is not inherently negative, it can involve court oversight, filing requirements, and delays. Michigan law provides for both formal and informal probate under MCL §700.3301 and §700.3302. Informal probate is typically faster and less expensive, but formal probate may be required if disputes occur.
A will is often sufficient for those with modest assets, simple family structures, and no need to avoid probate. However, certain situations may warrant the added benefits of a trust.
How Trusts Work in Michigan Estate Planning
A trust is a legal arrangement in which assets are held by a trustee for the benefit of designated beneficiaries. In Michigan, trusts are governed by the Michigan Trust Code.
A revocable living trust is a common estate planning tool. Individuals usually act as their own trustee during their lifetime, maintaining control over their assets. Upon death or incapacity, a successor trustee manages or distributes assets according to the trust’s terms.
A key advantage of a trust is probate avoidance. Assets in a properly funded trust generally bypass probate, saving time, reducing court involvement, and maintaining privacy since probate records are public.
Trusts also offer incapacity planning. If an individual cannot manage finances due to illness or injury, the successor trustee can act without court involvement. This may eliminate the need for guardianship or conservatorship proceedings under Michigan law, including those in MCL §700.5401.
Trusts benefit families with minor children, blended families, or those seeking control over asset distribution. For example, a trust can specify distributions at certain ages or for purposes such as education, housing, or healthcare.
When A Will May Be Enough
In some cases, a will alone is appropriate. Individuals with limited assets, straightforward family structures, or beneficiaries capable of managing inheritances may opt for a will-based plan. Michigan law also allows small estates to avoid full probate in certain situations.
Michigan law offers simplified procedures for small estates. Estates below certain value thresholds can transfer assets without formal probate, making a will-based plan practical for those with fewer assets.
A will is also effective when most assets have beneficiary designations, such as retirement accounts, life insurance, or jointly owned property. These assets usually transfer outside probate, regardless of a trust. If someone becomes incapacitated without proper planning, family members may need to seek court involvement for guardianship or conservatorship. This is an important consideration when deciding whether a trust may provide added protection.
When A Trust May Be The Better Option
A trust is often beneficial for those owning real estate in multiple states, as it helps avoid multiple probate proceedings. Families with minor children may use trusts to control distributions, and individuals seeking privacy may prefer trusts since probate records are public.
Trusts can reduce delays in asset distribution. Probate may take months, while trust administration often allows for more efficient transfers. This can simplify administration and reduce stress for families.
Individuals with significant assets or complex family situations often find trusts offer greater flexibility and protection. Trusts enable customized planning to address specific family goals.
Combining A Will and a Trust For A Complete Plan
In many cases, the most effective estate plan includes both a will and a trust. A “pour-over will” is commonly used alongside a trust. This type of will directs any remaining assets into the trust after death. Michigan law recognizes pour-over wills under MCL §700.2511.
Combining a will and trust allows for probate avoidance while ensuring all assets are properly distributed. This approach also protects assets not transferred into the trust during the individual’s lifetime.
We often recommend a comprehensive estate plan that includes a trust, will, powers of attorney, and healthcare directives. This ensures both lifetime and post-death planning goals are met.
Estate Planning Frequently Asked Questions
No. Many Michigan residents benefit from trusts regardless of asset size. Trusts are often used for probate avoidance, incapacity planning, and structured asset distribution. Even individuals with moderate assets may benefit from trust planning depending on their goals and family circumstances.
A properly funded trust can avoid probate for assets placed into the trust. However, assets not transferred into the trust may still require probate. This is why we often recommend using a pour-over will as part of a comprehensive estate plan.
Yes. With a revocable living trust, individuals typically retain full control over assets during their lifetime. Changes can be made at any time, and assets can be added or removed as needed.
A will only takes effect after death. If incapacity occurs, family members may need to pursue guardianship or conservatorship proceedings under Michigan law. A trust can help avoid this situation by allowing a successor trustee to step in.
A trust often involves higher upfront costs than a will. However, trusts may reduce probate costs, delays, and court involvement later. The overall value depends on each person’s circumstances.
Many individuals benefit from having both. A trust can help avoid probate and provide incapacity planning, while a will ensures remaining assets are properly handled.
Call Boroja, Bernier & Associates For Estate Planning Guidance
Choosing between a will and a trust is an important decision that affects long-term financial security and family protection. We help individuals and families throughout Oakland County, Macomb County, and Southeast Michigan develop estate plans tailored to their goals. Whether a will, trust, or combination is appropriate, we work closely with clients to ensure Michigan law requirements are met and assets are protected.
Boroja, Bernier & Associates provides estate planning services for clients throughout Michigan, including Troy, Rochester, Shelby Township, and the surrounding areas. To schedule a consultation with the Michigan estate planning and probate lawyers at Boroja, Bernier & Associates, call our law offices at (586) 991-7611. Our firm is ready to help create a plan that protects your future and your family.
