Michigan Beneficiary Accounts

A married couple's account doesn't need special account-opening paperwork to get Michigan's strongest creditor protection — the presumption does the work by default.

The entireties presumption reaches specific financial assets

Michigan Statute 557.151 extends the same basic idea behind tenancy by the entirety in real estate to a defined list of personal property. Bonds, stock certificates, mortgages, promissory notes, debentures, and other evidences of indebtedness made payable to a husband and wife are held by them in the same manner, and subject to the same conditions, as jointly held real estate between spouses — with full right of survivorship. Michigan courts have gone further, recognizing a presumption that this category of property is genuinely held by the entirety, not just an ordinary joint tenancy, unless an intent to hold it otherwise was expressly stated somewhere.

Strong protection against an individual spouse's creditors

Where this presumption genuinely applies, the protection mirrors what real estate gets under entireties ownership: a creditor of just one spouse generally can't reach the account or security at all. Only a creditor with a judgment against both spouses together can. This can matter enormously in situations like a lawsuit, a business debt, or a professional liability claim against just one spouse — assets that would otherwise look vulnerable can be shielded if they genuinely qualify for entireties treatment.

A bank's own paperwork isn't the final word

What makes this presumption genuinely powerful is how hard it is to accidentally waive. A real Michigan Supreme Court case involved a creditor trying to reach a married couple's accounts using a judgment against only the husband, pointing to the bank's own internal records — which had labeled the accounts using joint-tenancy terminology. The court held that this labeling, standing alone, didn't defeat the entireties presumption, because no affirmative expression of a contrary intent had actually been made. The presumption survives sloppy or generic account paperwork; it takes a genuine, expressed intent to hold the property some other way to overcome it.

What this means practically for account holders

A married Michigan couple opening a joint account generally doesn't need to take any special extra step to get entireties treatment for the categories of personal property the statute covers — the presumption applies by default. That said, anyone who genuinely wants to hold an account as an ordinary joint tenancy instead, for whatever reason, needs to make that intent explicit and documented, since a generic label alone won't accomplish it.

P.O.D. designations, life insurance, and retirement accounts

A payable-on-death (P.O.D.) beneficiary designation works differently from joint ownership between co-owners. The named P.O.D. beneficiary has no rights to the account during the owner's life, and receives whatever remains only once the owner dies. Life insurance and retirement accounts like a 401(k) or IRA follow the same basic rule — the named beneficiary receives the asset directly, outside probate, as long as they're alive when the owner dies, and it only becomes part of the probate estate if no beneficiary was ever named or every named beneficiary predeceased the owner with no contingent beneficiary in place.

Michigan beneficiary accounts — frequently asked questions

What kinds of personal property does Michigan's entireties presumption cover?

Bonds, stock certificates, mortgages, promissory notes, debentures, and other evidences of indebtedness made payable to a husband and wife — a specific statutory list, extending the entireties concept beyond real estate into certain financial assets.

Does this Michigan statute automatically apply to every jointly titled account?

It applies to the categories of personal property the statute lists, made payable to a husband and wife, with a presumption of entireties ownership unless otherwise expressly provided in the document creating the interest.

Can a creditor of only one spouse garnish a Michigan account covered by the entireties presumption?

Generally no. If the account or security is genuinely held by the entirety, only a creditor with a judgment against both spouses jointly can reach it — a creditor of just one spouse cannot, even if internal account records use joint-tenancy terminology.

What overcomes the Michigan entireties presumption for spousal personal property?

An affirmatively expressed intent to hold the property otherwise. Michigan courts have held that internal labeling alone, such as an account record using joint-tenancy abbreviations, is not enough by itself to overcome the statutory presumption.

Do life insurance and retirement accounts skip probate in Michigan the same way?

Yes. Both pass directly to a living named beneficiary, outside probate, and only become part of the probate estate if no beneficiary was named, every named beneficiary predeceased the owner with no contingent beneficiary in place, or the policy or plan names the owner's own estate.

This page provides general guidance only and is not legal advice. Rules are based on Michigan statute (MCL 557.151) and published Michigan and federal court decisions applying Michigan law, verified per our methodology. Confirm a specific account's titling and ownership status with the financial institution, or with a licensed Michigan attorney, before acting.