Michigan Living Trust Funding Mistakes

Quick answer: the single most common mistake is signing the trust but never deeding real estate into it. An unfunded trust leaves the estate in full Michigan probate, unwaivable inventory fee included. See what that would cost in the Michigan probate vs living trust calculator.

1. Real estate never deeded into the trust

Michigan real estate requires a new deed transferring the property from the individual owner's name into the trust's name, and that deed must be properly recorded with the county register of deeds. A trust document alone, however carefully drafted, does not move title on its own — this is consistently the single biggest funding gap.

2. Financial accounts left titled individually

Bank and brokerage accounts need to be either retitled into the trust's name or given trust beneficiary designations. Accounts left in an individual's name pass outside the trust and typically land back in the probate estate.

3. Assets acquired after the trust was created

A trust only covers what's actually transferred into it. A new account, vehicle, or newly purchased property acquired after the trust was signed needs its own separate transfer — the trust doesn't automatically absorb future acquisitions.

4. Forgetting the inventory fee doesn't care why an asset is there

Funding mistakes — frequently asked questions