Estate Planning in Michigan

Estate planning in Michigan involves navigating a specific set of state laws that differ in important ways from neighboring states. Understanding these distinctions helps ensure your documents will be valid and your wishes carried out as intended.

Like all states, Michigan recognizes formally executed wills and living trusts as valid estate planning tools. A standard will here requires 2MCL 700.2502Verified Sep 16, 2026View source adult witnesses, and adding a notarized self-proving affidavit can streamline the probate process later. The state also recognizes holographic (handwritten) wills, though these have stricter proof requirements and are more vulnerable to legal challenges.

A Michigan healthcare power of attorney is signed before 2MCL § 700.5506Verified Jul 15, 2026View source witnesses; notarization is not requiredMCL § 700.5506Verified Jul 15, 2026View source. Witnesses must be at least 18 yearsMCL § 700.5506Verified Jul 15, 2026View source old and cannot be the named agent, blood relatives, anyone who would inherit from the principal, the principal’s healthcare providers or employees of the facility where the principal is a patient. The agent must be at least 18 yearsMCL § 700.5506Verified Jul 15, 2026View source old.

A Michigan financial power of attorney is signed before either 2MCL § 556.201-556.505 (Act 187 of 2023, eff. 7/1/2024; repealed former MCL 700.5501-5505 EPIC durable POA provisions)Verified Sep 18, 2026View source witnesses or a notary publicMCL § 556.201-556.505 (Act 187 of 2023, eff. 7/1/2024; repealed former MCL 700.5501-5505 EPIC durable POA provisions)Verified Sep 18, 2026View source. The document is durable by defaultMCL § 556.201-556.505 (Act 187 of 2023, eff. 7/1/2024; repealed former MCL 700.5501-5505 EPIC durable POA provisions)Verified Sep 18, 2026View source: it stays in effect if the principal becomes incapacitated. A springing power of attorney, one that takes effect only when the principal becomes incapacitated, is permittedMCL § 556.201-556.505 (Act 187 of 2023, eff. 7/1/2024; repealed former MCL 700.5501-5505 EPIC durable POA provisions)Verified Sep 18, 2026View source. The agent signs an acceptance of the appointment. The state adopted the Uniform Power of Attorney Act in 2024, modernizing its rules around financial powers of attorney. Documents created before 2024 may not reflect the current law’s protections.

Michigan does not impose a state estate tax or inheritance tax, which means estates are only subject to the federal estate tax (currently exempting the first $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source per person, or $30,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source for married couples using portability). This is a meaningful advantage over the states that layer their own death taxes on top of the federal system.

Michigan does not require a revocable living trust to be notarizedMCL 700.7101 et seq.Verified Jul 15, 2026View source. Michigan does not allow transfer-on-death deeds for real estate. Without this option, real property must pass through probate or be held in a trust to avoid court proceedings. Transferring a home into a revocable trust does not forfeit Michigan's homestead exemption—the protection carries through to trust-held property. Transferring property into a revocable trust does not trigger a property tax reassessment in Michigan, so property taxes remain at their current level.

Michigan automatically revokes an ex-spouse as beneficiary on life insurance, retirement accounts, and similar designations upon divorce. However, these automatic revocations can be overridden by a divorce decree or by re-designating the ex-spouse after the divorce. Michigan does not protect inherited IRAs from creditors. Unlike the owner's own retirement accounts, inherited IRAs in Michigan are vulnerable to creditor claims, which is an important consideration when naming beneficiaries.

Michigan authorizes remote online notarization (RON), allowing trusts, powers of attorney to be notarized via video call from anywhere. However, wills are excluded from RON and still require in-person notarization.