For most Michigan homeowners, the house is the single most valuable thing they own — and the asset most likely to drag their estate into probate. That’s why real estate is at the center of almost every living-trust conversation. If you’re thinking about placing your home in a trust, here’s how it actually works and what to watch out for.
Why the house matters so much
When you pass away, real estate titled in your name alone generally has to go through probate before it can be transferred or sold. In Michigan, that court process takes time, costs money, and is public. If you own a cottage up north or property in another state in addition to your primary residence, each one can create its own probate headache — and out-of-state property can trigger a second probate in that state.
A revocable living trust solves this by changing who owns the property on paper. Instead of you owning the home as an individual, the trust owns it. When you die, the home passes to your beneficiaries under the terms of the trust — no probate required.
How a home gets transferred into the trust
This step is called funding the trust, and with real estate it’s not automatic. Creating the trust document alone does nothing to your house. You have to execute a new deed transferring the property from yourself to your trust, and that deed must be properly signed, notarized, and recorded with the county register of deeds.
Done correctly, this transfer:
· Keeps the home out of probate.
· Does not trigger a property tax “uncapping” reassessment, because Michigan law specifically exempts transfers to a revocable trust where you remain the beneficiary (this is a common worry, and a properly drafted transfer avoids it).
· Does not disturb your mortgage; the federal Garn–St. Germain Act prevents lenders from calling the loan due when you transfer your residence into your own revocable trust.
Because the details matter — the deed language, the legal description, the recording — this is one area where DIY mistakes are costly. An improperly drafted deed can fail to accomplish the transfer or, worse, create title problems for your heirs.
A Michigan-specific alternative: the Lady Bird deed
Michigan is one of a handful of states that recognizes the “Lady Bird” (enhanced life estate) deed. It lets you keep full control of your home during your life — including the right to sell or mortgage it — while naming who automatically receives it at your death, outside of probate. For homeowners whose main concern is just the house, a Lady Bird deed is sometimes a simpler tool than a full trust. For people with broader planning needs, it’s often used alongside a trust.
Which approach fits depends on your overall estate, not just the house. A good overview of setting up a living trust in Michigan explains how real estate funding fits into the bigger plan and when a trust is worth it versus a simpler deed-based solution.
Before you transfer anything
A quick checklist for homeowners:
1. Confirm the trust is drafted first. You’re transferring the home into an existing trust.
2. Use the correct deed and legal description. Pull it from your current recorded deed.
3. Record it with the county register of deeds — an unrecorded deed can cause problems.
4. Tell your insurer. Your homeowner’s policy should reflect the trust as an additional insured.
5. Update related documents so the trust and your will work together.
Bottom line
Your home is probably the main reason a living trust would benefit your family — and it’s also the asset most often funded incorrectly. Get the deed right, record it properly, and your house can pass to your loved ones quickly, privately, and without a trip to probate court.
This article is for general education and is not legal advice. Real estate and title matters are fact-specific; consult a licensed Michigan attorney.
Author bio: Contributed in partnership with Rochester Law Center, PLLC, a Michigan estate planning firm assisting homeowners with living trusts, Lady Bird deeds, and probate avoidance.