Lady Bird Deeds in Michigan: Avoid Probate on Your Home

What Happened

A Michigan elder law firm published a detailed explainer in July 2026 on one of the state's most distinctive real estate and estate planning tools: the Lady Bird Deed. The article, written by Woods Law Office PLLC based in Shelby Township, walks Michigan homeowners through how the Enhanced Life Estate Deed works, why families use it, and where it fits within a broader estate plan.

The piece addresses a question the firm receives frequently from clients researching estate planning options: how to transfer a home to loved ones after death without triggering the probate process. The Lady Bird Deed, the firm explains, accomplishes this goal while preserving the original owner's full control over the property during their lifetime. The owner retains the right to sell, refinance, lease, or revoke the deed entirely without seeking permission from any named beneficiary.

The article also touches on the deed's potential role in Medicaid estate recovery planning, its limitations compared to a revocable living trust, and situations where additional planning may be necessary. The firm cautions that the Lady Bird Deed is not a universal solution and that family circumstances — including blended families, multiple properties, and complex asset portfolios — may call for a different or supplementary approach.

What It Means

Michigan's Unique Position Among U.S. States

Michigan is one of a small number of states that recognizes the Lady Bird Deed without a specific enabling statute. The deed operates under longstanding common law principles governing life estates, enhanced by language that reserves broad retained powers for the original owner. This distinguishes it from Transfer on Death Deeds, which 34 states have adopted through specific legislation. Michigan does not currently offer a statutory Transfer on Death Deed, making the Lady Bird Deed the primary non-probate tool available for transferring real estate directly to beneficiaries at death.

For Michigan homeowners, this matters because real estate frequently represents the largest single asset in an estate. Without a planning mechanism like a Lady Bird Deed or a funded revocable trust, a home passes through the probate court system after death. Michigan's probate process typically runs 7 monthsMCL 700.3982, 700.3983 (small estateVerified Jul 15, 2026View source to 12 monthsMCL 700.3982, 700.3983 (small estateVerified Jul 15, 2026View source for an average estate, with a court filing fee of $150MCL § 600.880(1)Verified Jul 15, 2026View source and attorney fees that typically range from 1.7%MCL 700.3721 (court reviews reasonableness of attorney compensation; no statutory percentage)Verified Jul 15, 2026View source to 2.7%MCL 700.3721 (court reviews reasonableness of attorney compensation; no statutory percentage)Verified Jul 15, 2026View source of the estate's value. A Lady Bird Deed sidesteps that timeline and those costs entirely for the property it covers. Families interested in understanding what probate might cost for their specific situation can use the Probate Cost Calculator to run the numbers.

How the Lady Bird Deed Fits Into Michigan's Estate Planning Landscape

The deed's retained-control feature is what separates it from a traditional life estate. In a standard life estate, naming a remainder beneficiary on a deed creates a present ownership interest in that person. The original owner loses the unilateral ability to sell or refinance without the beneficiary's cooperation. A Lady Bird Deed eliminates that constraint. The named beneficiaries hold no present interest and cannot block a sale, a refinance, or a change of beneficiaries. The property transfers to them automatically at death only if the deed remains in place.

This flexibility makes the Lady Bird Deed particularly useful in Medicaid planning contexts. Michigan follows federal Medicaid estate recovery rules, which allow the state to seek reimbursement from a deceased recipient's estate for long-term care costs paid. Because a Lady Bird Deed transfers property outside the probate estate, the home may avoid inclusion in the estate recovery calculation — though Medicaid rules are complex and outcomes depend on individual circumstances. Families navigating long-term care costs alongside estate planning often benefit from reviewing both the Lady Bird Deed and trust options together. The article from Woods Law Office correctly notes that a Lady Bird Deed and a revocable living trust can work in tandem: the deed handles the home, while the trust manages bank accounts, investments, vehicles, and other personal property.

When a Lady Bird Deed Is Not Enough

Michigan's small estate threshold currently stands at $53,000MCL 700.3982, 700.3983 (small estateVerified Jul 15, 2026View source for personal property transferred by affidavit, with a 28 daysMCL 700.3982, 700.3983 (small estateVerified Jul 15, 2026View source waiting period after death. Estates that fall below this threshold may qualify for simplified administration without a full probate proceeding. However, real estate does not qualify for the personal property affidavit process regardless of value, which is precisely why the Lady Bird Deed fills an important gap for homeowners whose estates would otherwise exceed the small estate threshold once the home is counted.

For estates with multiple properties, business interests, or beneficiaries with competing goals, a revocable living trust provides a more comprehensive solution. Michigan does not impose a transfer tax when real estate moves into a revocable trust, which removes a common cost concern for homeowners considering that route. Transferring a home into a Michigan revocable trust also does not trigger a property tax reassessment, preserving the owner's existing taxable value. Families with blended households, vacation properties, or rental real estate may find that the Lady Bird Deed handles the primary residence while a trust manages everything else — precisely the layered approach the Woods Law Office article describes.

Michigan imposes no state estate tax and no inheritance tax on deaths occurring today, which means the Lady Bird Deed's tax planning value centers on the federal level. Inherited property receives a stepped-up basis equal to the fair market value at the date of death, which can significantly reduce capital gains exposure for beneficiaries who later sell the property. This step-up applies whether the property transfers through a Lady Bird Deed, a trust, or probate, so the deed's primary advantage remains the avoidance of the probate process rather than any special tax treatment.

Execution and Recording Requirements

A Lady Bird Deed is a deed, which means it must be signed, notarized, and recorded with the county Register of Deeds to take effect. Michigan does not require witnesses for a deed, but notarization is mandatory. The deed must describe the property with legal precision and name the beneficiaries clearly. Recording the deed during the owner's lifetime is what gives it legal effect at death — an unrecorded deed does not transfer title. Families reviewing their options can explore Michigan's full range of deed types, which include Warranty Deed, Quit Claim Deed, or Lady Bird DeedMCL 700.7101 et seq.Verified Jul 15, 2026View source, each suited to different planning goals.

Context from SimplyTrust

For Michigan families weighing whether a Lady Bird Deed, a revocable trust, or a combination of both best fits their situation, understanding the full picture of probate costs and timelines is a useful starting point. SimplyTrust's free Probate Cost Calculator estimates fees and timelines based on estate size, giving families a concrete sense of what probate would cost before deciding whether to pursue a deed, a trust, or another planning strategy. Families who want a broader overview of how wills, trusts, and deeds interact can also explore the Glossary of Basic Estate Planning Terms for plain-language definitions of the concepts involved.

Michigan homeowners who determine that a revocable living trust better fits their goals — particularly those with assets beyond a single piece of real estate — can begin the process through SimplyTrust's Revocable Trust Builder. The tool walks through the key decisions involved in creating a trust document, including naming trustees, identifying beneficiaries, and structuring distributions. For those specifically focused on the home, the article Putting a House in a Trust explains how real estate transfers into a trust and what that means for ongoing ownership and control.

Source: What Is a Lady Bird Deed? A Simple Way to Avoid Probate in Michigan - Woods Law Office PLLC