Avoiding Probate And Ensuring A Smooth Transfer Of Assets
At our Michigan law firm, we work with many families who want to protect their property and simplify how it’s passed down. One of the most effective estate planning tools we recommend is a revocable living trust. A living trust helps you avoid the delays, expenses, and public nature of probate while giving you more control over how your assets are handled. Living trusts also allow for easier management of your personal affairs should you become incapacitated. Whether you are planning ahead for your own peace of mind or trying to protect your family from unnecessary stress, a properly funded living trust can make a substantial difference.
In Michigan, probate can be time-consuming and costly—even for relatively small estates. A trust allows your beneficiaries to avoid court and receive their inheritance faster. It can also help maintain privacy since trust administration is not a public process like probate. As attorneys serving clients in Troy, Shelby Township, and across Oakland and Macomb Counties, we’ve seen firsthand how a living trust can provide peace of mind and clarity when it matters most.
How Living Trusts Work Under Michigan Law
A living trust is a legal document that transfers ownership of your assets into a trust while you’re still alive. You act as the trustee during your lifetime, maintaining full control. Should you become incapacitated or when you pass away, your chosen successor trustee takes over and follows your instructions. Under Michigan law, living trusts are governed by the Michigan Trust Code, found in MCL 700.7101 to MCL 700.7913.
To be legally valid, the trust must meet the requirements of MCL 700.7402, which includes being in writing and signed by the person creating the trust. The trust only works as intended if assets are properly titled in the name of the trust. This means you transfer ownership of bank accounts, real estate, and other property into the trust’s name while you are alive.
Avoiding Probate Through A Living Trust
Probate is the legal process of settling an estate under court supervision. In Michigan, this process can be slow, public, and expensive. Any asset not jointly owned or lacking a beneficiary designation is subject to probate if not placed in a trust. A living trust allows you to bypass this process entirely for assets held in the trust.
When you pass away, your successor trustee distributes the trust property without court involvement. There’s no need to file a petition, publish legal notices, or wait for court approval. A living trust will save your family months of time and thousands of dollars in legal fees. Moreover, a living trust also reduces the chance of disputes. This is because your instructions are clearly written and legally enforceable.
Planning For Incapacity
A living trust is a valuable tool should you become incapacitated. If you are no longer able to manage your finances, your successor trustee can step in immediately. This avoids the need for a court-appointed conservator. Under MCL 700.7814, the trustee has the legal authority to act on your behalf and manage the trust property according to your instructions. This provides a clear plan and reduces stress during difficult times.
Customized Asset Distribution
With a trust, you can decide exactly how and when your beneficiaries receive their inheritance. You can include conditions, staggered distributions, or restrictions to protect young or financially inexperienced beneficiaries. You can also name alternate beneficiaries in case someone passes before you. This level of customization is not possible with a standard will alone.
Living Trust Frequently Asked Questions
Does A Living Trust Avoid Probate In Michigan?
Yes, assets placed in a properly funded living trust avoid probate in Michigan. If the trust owns the property at the time of your death, the court does not need to get involved. This allows for faster, more private distribution to your beneficiaries.
Do I Still Need A Will If I Have A Living Trust?
Yes, we always recommend a “pour-over” will. This ensures that any assets not included in the trust are transferred into it after your death. The will also let you name guardians for minor children, which a trust cannot do.
Who Should Be My Trustee?
You can serve as your own trustee while you’re alive and capable. After that, you’ll name a successor trustee—usually a trusted family member, friend, or professional fiduciary. The trustee must act in the best interest of the beneficiaries and follow the terms of the trust.
Can I Change My Living Trust?
Yes, as long as you are mentally competent, you can amend or revoke a revocable living trust at any time. This gives you flexibility if your family situation, finances, or goals change over time.
Are All Assets Included In A Living Trust?
Not automatically. You must transfer assets into the trust for them to be covered. This includes retitling bank accounts, real estate, vehicles, and investment accounts. We help make sure your trust is properly funded so it works as intended.
Is A Living Trust Recognized In Other States?
Yes, a trust created in Michigan is valid in other states. However, if you move or own property in another state, it’s wise to have your trust reviewed to ensure it complies with local laws.
Protect Your Assets And Your Family With Boroja, Bernier & Associates
If you’re ready to create a solid estate plan, we’re here to help. At Boroja, Bernier & Associates, we draft and manage living trusts that align with Michigan law and reflect your long-term goals. We’re committed to helping families protect what matters most.
We serve clients throughout Troy, Shelby Township, and the surrounding communities in Oakland County and Macomb County. Contact our Shelby Township living trust attorneys by calling 586-991-7611 to schedule your consultation with our team. Let’s create a plan that gives you control, privacy, and peace of mind.
