5 Estate Planning Mistakes Michigan Families Make (And How to Fix Them)

As a Michigan estate planning attorney, I see the same mistakes over and over — not from negligent people, but from thoughtful people who simply didn't know what they didn't know. Estate planning is one of those areas where the gaps between intention and execution can cost families dearly.

The good news: every one of these mistakes is fixable. Most of them can be addressed this week, without an attorney appointment, for less than you'd spend on dinner out.

Mistake #1: No Estate Plan at All

Approximately 67% of Americans don't have a will. In Michigan, that means two-thirds of families are leaving critical decisions — who raises their children, who inherits their home, who manages their finances — entirely to a court and a statutory formula that doesn't know anything about their lives.

The reasons people give are familiar:

• "I'm too young to need one." — Accidents and illness don't check your age. If you have children or a partner, you need a will now.
• "I don't have much." — Even a modest estate — a home, a car, a few accounts — creates significant complications without a plan. And who raises your minor children has nothing to do with your net worth.
• "It's too expensive." — Attorney-drafted Michigan will kits start at $47. The average Michigan probate proceeding costs thousands of dollars and months of delay.
• "I'll do it later." — This is the one that breaks my heart most often in practice. Later sometimes doesn't come.

How to Fix It

Start with the basics: a will and a financial power of attorney. If you own real estate and want to avoid probate, add a living trust. If you don't know where to begin, our free 12-point estate planning checklist walks you through exactly what your family needs. The most important thing is to start — an imperfect plan today is infinitely better than a perfect plan you never get around to making.

Mistake #2: Creating a Trust But Not Funding It

This one surprises many people who thought they had everything covered. A revocable living trust is an excellent tool — it avoids probate, keeps things private, and provides for incapacity. But a trust can only control assets that have been transferred into it. A trust that holds no assets is, legally speaking, an expensive piece of paper.

"Funding" a trust means re-titling your assets so they are owned by the trust. Your house, for example, requires a new deed transferring ownership from "John Smith" to "John Smith, Trustee of the John Smith Revocable Living Trust." Your brokerage accounts need to be retitled. Some bank accounts may need to be updated.

In practice, a significant percentage of people who pay an attorney $2,000–$5,000 to create a living trust never fully fund it. Their house is still titled in their personal name. At death, it goes through probate — defeating the entire purpose of the trust.

The Michigan Vehicle Exception

One practical note: Michigan does not allow motor vehicles to be titled in the name of a trust. Instead, Michigan vehicles can be titled with a transfer-on-death (TOD) designation or handled through a small estate affidavit process. Our trust kit's funding guide covers this exception specifically.

How to Fix It

If you have an existing trust, audit it now. Obtain a copy of the deed to your home and verify it names the trust as owner. Contact your brokerage and bank to confirm account titling. If you need to complete the funding process, our Michigan Living Trust Kit ($197) includes a comprehensive funding checklist and instructions for retitling the most common asset types.

Mistake #3: Outdated Beneficiary Designations

Here is a fact that catches many Michigan families off guard: your beneficiary designations on retirement accounts, life insurance policies, and payable-on-death bank accounts override your will. It doesn't matter what your will says. The named beneficiary on the account gets the money.

This creates serious problems when designations aren't updated:

The Divorce Problem

Michigan's MCL 700.2807 automatically revokes will provisions benefiting a former spouse upon divorce. But this statute applies to wills — not to retirement account beneficiary designations, life insurance policies, or other non-probate assets. If you're divorced and your 401(k) still names your ex-spouse as beneficiary, your ex-spouse gets the 401(k). Full stop. Your current spouse and children do not.

The Deceased Beneficiary Problem

If your named beneficiary predeceases you and you haven't updated the designation, what happens? It depends on the account and the institution. Sometimes the assets pass to a secondary (contingent) beneficiary. Sometimes they fall into your probate estate. Sometimes the institution's default rules apply in ways you'd never choose. Naming a contingent beneficiary and keeping it current prevents this.

The Minor Children Problem

If you name a minor child as a beneficiary and no guardian of the property has been designated, the court must appoint a conservator to manage the inheritance until the child turns 18. This means ongoing court oversight and fees. The alternative: name a trust as beneficiary if you want to leave assets to minor children, and designate a trustee to manage the funds.

How to Fix It

Gather statements for every retirement account, life insurance policy, and payable-on-death account you have. Log in or call to verify who is named as primary and contingent beneficiary. Update any designation that no longer reflects your wishes. Do this annually — add it to your calendar.

Mistake #4: No Healthcare Directive

People spend considerable time planning who gets their money. Far fewer plan for something equally important: who makes medical decisions for them — and what those decisions should be — if they can't communicate.

Without a healthcare directive, HIPAA's privacy rules may prevent your family from even getting information about your medical condition. Your spouse, your adult children, your parents — none of them automatically have the legal authority to access your medical records or make decisions on your behalf unless they are designated in a valid document.

Michigan's Patient Advocate Designation

Michigan law allows you to designate a "patient advocate" — a person authorized to make healthcare decisions on your behalf if you become unable to make them yourself. This document must:

• Be signed by you and two witnesses (witnesses cannot be healthcare providers or the patient advocate themselves)
• Be accepted in writing by the patient advocate — they must sign an acceptance acknowledging their duties
• Specifically authorize end-of-life decision-making if you want your advocate to have that authority

An advance healthcare directive (sometimes called a "living will") works alongside the patient advocate designation to document your specific medical wishes: whether you want life-sustaining treatment under various circumstances, your preferences regarding pain management and comfort care, and your wishes regarding organ donation.

The HIPAA Authorization

Even before you're incapacitated, a HIPAA authorization allows designated family members to access your medical information. This is separate from the patient advocate designation and can be valuable any time you're hospitalized and family members need to stay informed.

How to Fix It

Create a Patient Advocate Designation and an Advance Healthcare Directive. Our Healthcare Directive Kit ($37) includes both documents along with a medical wishes worksheet and a wallet card summarizing your directives for emergency situations. Keep the originals in a known location and provide copies to your patient advocate and primary care physician.

Mistake #5: The "Set It and Forget It" Mentality

An estate plan is not a one-time task. It's a living framework that needs to reflect your current life. Many families do the hard work of creating a plan and then never look at it again — even as their circumstances change dramatically.

Life events that should trigger an estate plan review:

• Marriage or divorce — Major distribution changes required; see MCL 700.2807 for what divorce does and doesn't automatically update
• Birth or adoption of a child — Update guardian nominations, add the child as a beneficiary, consider a trust for minor's inheritance
• Death of a named beneficiary, executor, or agent — Update all documents naming the deceased person
• Significant change in assets — Purchasing a home, selling a business, receiving an inheritance — these affect what your plan needs to cover
• Relocation to or from Michigan — Estate plans are state-specific; a document drafted in Ohio may not comply with Michigan law and vice versa
• Children reaching adulthood — A trust provision holding assets for a child "until age 25" needs to be reviewed as they approach that age
• Change in relationship with named parties — Estrangement, a named executor becoming ill, a formerly trusted agent proving untrustworthy

How to Fix It

Put an annual estate plan review on your calendar — January 1st works well, or your wedding anniversary, or any date you'll remember. During the review, check:

1. Do your named beneficiaries, executors, and agents still reflect your wishes?
2. Have any major life events occurred since the last review?
3. Are your beneficiary designations on retirement accounts and insurance still current?
4. Is your trust (if you have one) fully funded?
5. Have Michigan laws changed in ways that affect your documents?

Where to Start

If you've read this far and recognized your family in one or more of these mistakes, here is a practical starting point:

• No will: Start with the Michigan Will Kit ($47)
• Have a will but no trust: Consider the Michigan Living Trust Kit ($197) if you own real estate
• No POA: Get the POA Bundle ($67) — updated for Michigan's 2024 UPOAA requirements
• No healthcare directive: The Healthcare Directive Kit ($37) covers Patient Advocate Designation and Advance Directive
• Want comprehensive coverage: The Complete Estate Plan Bundle ($497) includes all six kits plus exclusive bonus resources