As estate planning attorneys, we know how important it is to protect the assets you’ve worked hard to earn. Whether you are thinking about how to take care of your family, reduce unnecessary legal complications, or avoid the delays and expenses of probate court, setting up a trust can provide peace of mind. Trusts enable you to take control of how your property is used and distributed during your lifetime and after you have passed. Trusts also help reduce the chances of disputes among family members, preserve privacy, and create legal safeguards against unexpected issues like incapacity or creditor claims.

Michigan law offers a wide range of trust options, and each serves a specific purpose. Some trusts are used for managing property while you are alive and able, while other trusts are used to protect beneficiaries after your death. The Michigan Trust Code, which is part of the Estates and Protected Individuals Code (EPIC), provides the framework for creating and managing trusts. To make sure that your goals are met, it’s important to understand which trust fits your situation and how it works under current Michigan statutes.

Revocable Living Trusts Offer Flexibility And Control

One of the most common tools we use in estate planning is the revocable living trust. A revocable trust is one that you can modify or cancel at any time during your life. Under MCL 700.7502, a revocable trust becomes irrevocable upon the death or incapacity of the settlor—the person who created the trust. This type of trust allows you to manage your assets while you’re alive and set clear terms for how those assets will be distributed when you pass.

With a revocable living trust, you can avoid probate by ensuring that your assets are owned by the trust rather than by you as an individual. This avoids the court process entirely and keeps your personal affairs private. You can serve as your own trustee while you are living and then name a successor trustee to take over if you become unable to manage your own affairs or after your passing.

Irrevocable Trusts Provide Stronger Asset Protection

If your goal is to protect assets from creditors, lawsuits, or estate taxes, an irrevocable trust may be a better choice. Once an irrevocable trust has been created, it typically cannot be changed or revoked. Because the assets are no longer under your personal control, they are generally protected from claims against you. These trusts can also help with Medicaid planning, charitable giving, or providing for a loved one with special needs.

Under MCL 700.7501 and related sections, Michigan law allows for various types of irrevocable trusts. We carefully evaluate your financial situation and long-term goals to determine whether an irrevocable trust may be appropriate for your estate plan.

Trusts Can Help Avoid Probate Court

Avoiding probate is a top priority for many of our clients. Probate is the legal process for distributing assets after someone passes away, and it can take several months or even years, depending on the size of the estate and whether there are any disputes. With a properly funded trust, most or all of your estate can be distributed privately and efficiently without court involvement.

Funding the trust is a critical step. This means retitling your assets—such as real estate, bank accounts, and investments—so they are owned by the trust. If assets remain in your individual name, they may still have to go through probate. We help clients make sure their trust is fully funded so the plan works the way it’s intended.

Trusts For Minor Children And Loved Ones With Special Needs

If you have minor children or family members who are not in a position to manage an inheritance on their own, a trust can provide structure and oversight. You can direct the trustee to distribute funds in specific ways, such as for education, housing, or medical needs. This ensures that your loved ones are supported without the risks that come with receiving a large lump sum.

For beneficiaries with disabilities, a special needs trust is often used. Under MCL 700.7502, these trusts must be carefully drafted so the assets do not interfere with the beneficiary’s eligibility for programs such as Medicaid or Supplemental Security Income (SSI). We make sure these trusts are structured properly under Michigan and federal law.

Frequently Asked Questions

What Is The Difference Between A Revocable And Irrevocable Trust?

A revocable trust can be changed or revoked during your lifetime and is primarily used to avoid probate and maintain control. An irrevocable trust usually cannot be changed once created, and it provides greater protection from creditors and estate taxes because the assets are removed from your personal ownership.

Do I Still Need A Will If I Have A Trust?

Yes. A will is still necessary to cover any assets that were not transferred into the trust. We usually prepare a pour-over will that directs any remaining property into the trust upon your passing. The will also allows you to name guardians for minor children, which a trust cannot do.

Can A Trust Help Protect Assets From Long-Term Care Costs?

Yes, an irrevocable trust may be used as part of Medicaid planning to protect certain assets. These trusts must be created at least five years in advance to meet Medicaid’s lookback requirements. We evaluate your financial situation to see if this strategy is appropriate and legally sound under Michigan Medicaid rules.

What Happens If I Don’t Fund My Trust?

If you don’t transfer your assets into the trust, those assets will not be governed by the trust’s terms. They may still have to go through probate, defeating the purpose of setting up the trust. We help ensure all key assets are properly retitled so your trust functions as intended.

How Often Should I Review My Trust?

We recommend reviewing your trust every three to five years or after major life changes such as marriage, divorce, the birth of a child, or a significant financial shift. Keeping your trust current ensures that your wishes are always accurately reflected.

Call Boroja, Bernier & Associates Today To Schedule A Consultation

If you’re thinking about protecting your assets and making sure your family is taken care of, we’re here to help. At Boroja, Bernier & Associates, we create customized trust solutions tailored to your needs under Michigan law.
Our offices in Troy and Shelby Township serve clients throughout Oakland County and Macomb County. Contact our Troy estate planning attorneys by calling at 586-991-7611 to schedule your consultation. Let’s put a plan in place that gives you peace of mind and protects your future.