The Estate Planning Guide Est. 2026

Estate Planning in Michigan: The Complete Guide

By The Estate Planning Guide Editorial Team Researched against primary sources

Published June 30, 2026 6 min read

Quick answer

Estate planning in Michigan means a will, a durable financial power of attorney, a patient advocate designation (Michigan's health care POA) with a living will, and current beneficiary designations. Michigan has no state estate or inheritance tax, and its informal probate under EPIC is relatively inexpensive — but every probate estate pays a mandatory inventory fee (MCL 600.871) scaled to the estate's value, so keeping assets out of probate saves real money. Michigan's signature tool for that is the Lady Bird deed (an enhanced life estate deed), widely used to pass a home outside probate — and outside Medicaid estate recovery. Because of that, many Michiganders avoid probate without a full living trust, using a will plus a Lady Bird deed and beneficiary designations. Michigan also recognizes handwritten wills.

Educational guide — not legal advice. Michigan law is set by statute and changes over time. Consult a licensed Michigan attorney about your situation.

Why Michigan is different

Michigan estate planning has a friendly tax picture with two distinctive features:

  1. The probate inventory fee. MCL 600.871(1) charges it “[i]n all decedents’ estates in which proceedings are instituted for probate” on the date-of-death value of the probate assets — so it applies to estates opened in probate, not to every decedent estate. MCL 600.871(1)(g) sets the fee at $362.50 plus 1/8 of 1% of the amount over $100,000 for an estate of $100,000 to $500,000; (h) adds $62.50 for each additional $100,000 over $500,000; and (i) $31.25 for each additional $100,000 over $1,000,000. On that schedule the fee is $362.50 at $100,000, $862.50 at $500,000 and $1,175 at $1,000,000.
  2. The Lady Bird deed. Michigan doesn’t have a statutory transfer-on-death deed, but it’s the classic Lady Bird deed state — an enhanced life estate deed that passes your home outside probate (and outside Medicaid estate recovery) while you keep control during life.

Michigan also recognizes handwritten wills under MCL 700.2502(2), and uses the patient advocate designation under MCL 700.5506 for health care. Let’s walk through the pieces.

The core documents

1. A will

Your will names who inherits, who serves as personal representative, and guardians for minor children. Michigan recognizes two valid forms:

  • An attested (typed) will — signed by you and two competent witnesses (MCL 700.2502(1)).
  • A holographic (handwritten) will — dated, signed, with material portions in your handwriting, no witnesses needed (MCL 700.2502(2)).

Notarization isn’t required, but a notarized self-proving affidavit (MCL 700.2504) speeds probate, and Michigan lets you make the will self-proved at the signing. See Does a Will Have to Be Notarized in Michigan?.

2. A durable financial power of attorney

Names someone to manage your finances if you become incapacitated, avoiding a court conservatorship. Michigan has specific witnessing/notary formalities, so use a current Michigan form.

3. A patient advocate designation + living will

Michigan’s patient advocate designation (MCL 700.5506) is its health care power of attorney — it names someone to make medical decisions for you. Pair it with a living will / statement of wishes and a HIPAA authorization.

4. Beneficiary designations and titling

Often the cheapest, highest-value step. These pass outside probate (and reduce the inventory fee):

5. A living trust — only if you need one

A revocable living trust operates on the assets retitled into it, removing them from the inventory-fee base, and provides non-public administration, successor-trustee authority on incapacity, out-of-state property administration, and staged distributions to assets — not always just to avoid probate, since a Lady Bird deed handles the home cheaply. See Do You Need a Living Trust in Michigan? and Lady Bird Deed vs. Living Trust in Michigan. If you set one up, fund it.

Probate in Michigan: cost and time

  • Cost: No statutory attorney or executor fee percentage (both “reasonable compensation”), the probate court’s filing fee on its published schedule, creditor-notice publication, and the inventory fee under MCL 600.871(1) — $362.50 at $100,000, $862.50 at $500,000 and $1,175 at $1,000,000 on the (1)(g)–(i) schedule. See Probate Cost in Michigan.
  • Time: the creditor window under MCL 700.3801 and 700.3803 — four months after publication — sets the floor; informal/unsupervised administration under EPIC moves fastest. See How Long Does Probate Take in Michigan.
  • Small estates: the statutory base is $50,000 (2024 PA 1), adjusted annually under MCL 700.1210; the adjusted amount in force for the current year is not stated here, because Michigan’s statute site could not be read from this environment. The threshold supports a Petition and Order for Assignment (MCL 700.3982) and a Transfer by Affidavit 28 days after death (MCL 700.3983).
  • Avoiding it: Lady Bird deed, POD/TOD, beneficiary designations, joint ownership, and trusts. See How to Avoid Probate in Michigan.

What happens if you do nothing

Without a will, Michigan’s intestacy rules (under EPIC) decide who inherits — generally a split between the surviving spouse and descendants, with the spouse’s share depending on whether there are children from other relationships. The estate still goes through probate and pays the inventory fee. See What Happens If You Die Without a Will in Michigan.

A simple sequence to get started

  1. Inventory what you own and how each asset is titled.
  2. Beneficiary designations on retirement accounts and life insurance.
  3. The core documents — will (two witnesses + self-proving affidavit), durable POA, patient advocate designation.
  4. Record a Lady Bird deed on your home and add POD/TOD registrations.
  5. A trust, which addresses privacy, incapacity, out-of-state property and controlled distributions.
  6. Guardians for minor children, nominated in the will.
  7. Tell your personal representative where everything is, and review after any big change.

What the record shows

Michigan imposes no state estate or inheritance tax. It charges a probate inventory fee on the date-of-death value of probate assets (MCL 600.871) and sets no statutory attorney or executor fee percentage — both are ‘reasonable compensation’. A typed will requires two witnesses (MCL 700.2502(1)); a dated holographic will requires none (§700.2502(2)); the self-proving affidavit under §700.2504 is optional. Michigan has no statutory transfer-on-death deed but recognises Lady Bird (enhanced life estate) deeds, and assets passing that way are not counted in the inventory fee. Healthcare decisions are governed by a patient advocate designation under MCL 700.5506.

Common questions

Does Michigan have an estate or inheritance tax?

No — Michigan has neither. Only the federal estate tax (very large estates) applies.

What is a Lady Bird deed in Michigan?

An enhanced life estate deed that passes your home to a named beneficiary at death, outside probate, while you keep full control during life. Michigan widely recognizes them, and they also help protect the home from Medicaid estate recovery.

What is the Michigan probate inventory fee?

A mandatory court fee on the date-of-death value of probate assets. MCL 600.871(1)(g) sets the fee at $362.50 plus 1/8 of 1% of the amount over $100,000 for an estate of $100,000 to $500,000; (h) adds $62.50 for each additional $100,000 over $500,000; and (i) $31.25 for each additional $100,000 over $1,000,000. On that schedule the fee is $362.50 at $100,000, $862.50 at $500,000 and $1,175 at $1,000,000. Assets that avoid probate are not counted, and MCL 600.871(2) deducts indebtedness secured by estate real property before the fee is computed.

Yes — MCL 700.2502(2) recognizes holographic wills that are dated, signed, and have material portions in the testator’s handwriting. They’re valid but easier to challenge than a typed, witnessed will.

What is a patient advocate designation?

Michigan’s health care power of attorney (MCL 700.5506). It names someone to make medical decisions for you if you can’t, and it’s a standard part of a full Michigan plan alongside a durable financial power of attorney.

How long does probate take in Michigan?

The creditor-claims period under MCL 700.3801 and 700.3803, four months after publication, sets the practical floor; informal, unsupervised administration under EPIC moves fastest, while supervised or contested estates can run well over a year.

The full Michigan cluster

Educational information only — not legal, tax, or financial advice. Michigan law is set by statute and changes; the small-estate threshold adjusts annually. Confirm your situation with a licensed Michigan attorney. Sources: MCL 600.871; Michigan Estates and Protected Individuals Code (EPIC), MCL 700.2502, 700.2504, 700.3719, 700.3982, 700.3983, 700.5506; State Bar of Michigan.

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