Estate Planning for Michigan Seniors: What You Actually Need (and What You Can Do Yourself)

If you are a Michigan senior and you do not have an estate plan, you are not alone. About two-thirds of American adults have no will at all. The number one reason people give is cost. Estate planning attorneys in Michigan typically charge $1,500 to $3,000 or more for a full plan. If that is not in your budget, it can feel like estate planning is something only wealthy people do. It is not. And you do not necessarily need to hire an attorney to get the basics done right.

The Cost Reality Check

Let us be honest about what things cost in Michigan right now. A full estate plan from an attorney (will, trust, power of attorney, healthcare directive) runs anywhere from $1,500 to $5,000 depending on complexity. A simple will alone is typically $300 to $800. A trust adds another $1,000 to $3,000 on top of that.

For many seniors on a fixed income, those numbers just are not realistic. The good news is that Michigan law does not require you to use an attorney to create any of these documents. You can legally draft your own will, your own trust, your own power of attorney, and your own healthcare directive. What matters is that the documents follow Michigan's legal requirements, not who prepared them.

The alternative to an attorney is using attorney-drafted templates that are specifically designed for Michigan. These give you the proper legal language and structure while letting you fill in your own details. The cost difference is significant: an attorney-quality template kit runs under $100 compared to $1,500 or more for the same documents prepared in a law office.

Is a template as good as a custom-drafted plan from an attorney who interviews you for two hours? No. But it is infinitely better than having nothing at all. And for most Michigan seniors with straightforward situations, a properly completed template does exactly what it needs to do.

The Four Documents Every Michigan Senior Needs

1. A Will

Your will tells a judge who gets what after you die. Without one, Michigan's intestacy laws under MCL 700.2101 decide for you, and the results might not be what you would choose. Under these default rules, your spouse gets the first $150,000 plus half the rest. If you have no spouse, everything is split equally among your children. If you have no children, it goes to your parents, then siblings, then more distant relatives.

For a Michigan will to be legally valid, you must be at least 18 years old and of sound mind. The will must be in writing and signed by you in front of two witnesses. The witnesses must also sign the will. Adding a self-proving affidavit (a notarized statement from the witnesses) makes things easier on your family later because it means the witnesses will not have to appear in court after your death.

This is something you can absolutely do yourself with the right template. The legal requirements are straightforward, and a good template walks you through every step.

2. Durable Financial Power of Attorney

This document names someone you trust to handle your money and finances if you become unable to do it yourself. Without a power of attorney, your family would need to go to probate court and petition for a conservatorship, which costs thousands of dollars and can take months. Michigan adopted the Uniform Power of Attorney Act in 2023, updating the requirements for these documents.

The key word here is "durable." A durable power of attorney stays in effect even after you become incapacitated. A regular (non-durable) power of attorney would stop working at exactly the moment you need it most.

3. Patient Advocate Designation (Healthcare Directive)

Michigan does not use the term "living will" in its statutes. Instead, Michigan law provides for a Patient Advocate Designation under MCL 700.5506. This document names someone to make medical decisions for you if you cannot speak for yourself, and it lets you spell out your wishes regarding end-of-life care, life support, and organ donation.

Under Michigan law, your patient advocate designation must be signed by you and two witnesses. The witnesses cannot be your spouse, parent, child, grandchild, sibling, presumptive heir, known devisee, your physician, or an employee of your health facility. Your designated patient advocate also cannot serve as a witness.

This is one of the most important documents you can have as a senior, and it costs nothing extra when included in an estate planning kit.

4. A Trust (Maybe)

Not everyone needs a trust. If your estate is simple, a will combined with beneficiary designations on your accounts may be enough. But a revocable living trust can be worth the effort if you want to avoid probate, keep your affairs private, or make things significantly easier for your family.

Probate in Michigan typically takes 7 to 12 months and costs 3 to 5 percent of the estate in fees. A trust lets your assets pass directly to your beneficiaries without going through probate court. For a $200,000 estate, avoiding probate could save your family $6,000 to $10,000 in fees and many months of waiting.

If your main asset is your home, a Lady Bird deed (covered below) might accomplish the same goal more simply than a trust.

Protecting Your Home: Lady Bird Deeds

For many Michigan seniors, the house is the most valuable thing they own. A Lady Bird deed (also called an enhanced life estate deed) is one of the simplest and most powerful tools available under Michigan law to protect it.

Here is how it works. You sign a deed that says: I keep full ownership and control of my home during my lifetime. I can sell it, refinance it, or change my mind at any time. But when I die, the house automatically transfers to the person I named, without going through probate.

The benefits for Michigan seniors are significant:

• You stay in control. Nothing changes about how you live in or use your home.
• It avoids probate. The property transfers automatically when you pass away. Your family just needs to file a death certificate and an affidavit with the county Register of Deeds.
• It may protect your home from Medicaid estate recovery. Under current Michigan law (MCL 400.112g), the state can only recover Medicaid costs from assets that pass through probate. Since a Lady Bird deed removes the property from probate, it is currently protected from these claims.
• Your beneficiary gets a stepped-up tax basis. If they sell the house, they only pay capital gains tax on any increase in value after your death, not since you originally bought it.

A Lady Bird deed needs to be drafted correctly and recorded with your county Register of Deeds. The filing fee is typically $30 to $60 depending on the county. This is one area where spending a little on a properly drafted template or brief attorney consultation is worthwhile, because a mistake in the deed language could cause serious problems.

Medicaid and Long-Term Care: What You Need to Know

Long-term care is expensive. Nursing home care in Michigan averages over $9,000 per month. Most people cannot afford to pay that out of pocket for very long, which is where Medicaid comes in.

To qualify for Medicaid-covered nursing home care in Michigan, you generally cannot have more than $2,000 in countable assets (as an individual). Your home is usually exempt while you or your spouse lives there, but there are equity limits. Michigan also enforces a five-year look-back period on asset transfers. If you gave away assets or sold them below fair market value within five years of applying for Medicaid, you may face a penalty period during which Medicaid will not pay for your care.

This is important to understand because it means you cannot simply give your house to your children or move money out of your accounts right before applying for Medicaid. The state will find those transfers and penalize you for them.

What You Can Do on Your Own

Some basic Medicaid-friendly steps do not require an attorney:

• Prepay your funeral and burial expenses. Prepaid funeral plans are generally exempt from Medicaid asset counting.
• Pay down your mortgage or make home improvements. Your home equity (up to certain limits) is exempt.
• Make sure your car is titled in your name only. One vehicle is generally exempt.
• Use a Lady Bird deed for your home to avoid probate and Medicaid estate recovery on the house.

When You Need Professional Help

Complex Medicaid planning -- like setting up irrevocable trusts, annuity strategies, or spousal asset restructuring -- is one area where DIY approaches can backfire. The five-year look-back period means a mistake can be very expensive. If you are within five years of potentially needing nursing home care and have significant assets to protect, consulting with an elder law attorney is worth the investment. Budget $1,500 to $3,000 for a focused Medicaid plan.

But if you are primarily concerned about getting your basic estate documents in order -- a will, power of attorney, healthcare directive, and maybe a Lady Bird deed -- you can handle those yourself and save the attorney budget for Medicaid planning if and when you actually need it.

The Beneficiary Designation Mistake Almost Everyone Makes

This one catches more Michigan seniors off guard than almost anything else. Your beneficiary designations on retirement accounts (IRAs, 401(k)s), life insurance policies, and bank accounts override your will. It does not matter what your will says. If your IRA names your ex-spouse as beneficiary, your ex-spouse gets the money.

Here is what to check right now:

• Pull out every retirement account statement and check the beneficiary.
• Call your life insurance company and confirm who is listed.
• Check if any bank or investment accounts have a "transfer on death" or "payable on death" designation.
• Make sure every beneficiary is someone you actually want to receive the money.

This costs nothing to fix. You just need to contact each institution and update the forms. But failing to do it is one of the most common and most expensive estate planning mistakes out there.

What You Can Do Yourself vs. When to Get Help

Here is a practical breakdown for Michigan seniors:

You can definitely do yourself:

• Create a will using a Michigan-specific template
• Create a durable financial power of attorney
• Create a patient advocate designation (healthcare directive)
• Update all beneficiary designations on financial accounts
• Create a digital assets inventory
• Organize important documents for your family

Worth getting professional help for:

• Complex Medicaid planning with significant assets
• Estates over $1 million with potential tax implications
• Business ownership succession
• Situations involving a disabled child or special needs beneficiary
• Real estate in multiple states

In-between (template may work, but review the specifics):

• Creating a revocable living trust
• Drafting a Lady Bird deed
• Blended family situations with children from prior marriages

The smart approach: handle the basics yourself with quality templates, and save your attorney budget for the things that genuinely require professional judgment.

Your Action Checklist

If you are a Michigan senior and have not started estate planning, here is what to do this week:

• Today: Check every beneficiary designation on your retirement accounts, life insurance, and bank accounts. Update anything outdated. This is free and takes about an hour of phone calls.
• This week: Create your patient advocate designation (healthcare directive). This is the most urgent document because a medical emergency can happen anytime. You need two witnesses who are not family members.
• This week: Create your durable financial power of attorney. Name someone you trust completely to manage your finances if you cannot.
• This month: Create your will. List who gets what, name a personal representative (executor), and have it signed in front of two witnesses. Add a self-proving affidavit while you are at it.
• This month: Decide whether you need a trust or Lady Bird deed for your home. If probate avoidance is your main goal and your house is your primary asset, a Lady Bird deed may be the simpler option.
• When you are ready: If you have significant assets and think nursing home care may be in your future, schedule a consultation with an elder law attorney specifically about Medicaid planning. Do not wait until a crisis to have this conversation.

Get Your Michigan Estate Planning Documents

You do not need to spend thousands on an attorney to protect yourself and your family. The CreateMIWill estate planning kits give you the same attorney-drafted, Michigan-specific documents at a fraction of the cost. Every template is designed to comply with Michigan's Estates and Protected Individuals Code (EPIC), and comes with step-by-step instructions written in plain English.

Frequently Asked Questions

Is a DIY will legally valid in Michigan?

Yes. Michigan law does not require a will to be prepared by an attorney. A will is valid if you are at least 18 years old, of sound mind, and the will is in writing, signed by you, and signed by two witnesses. Using attorney-drafted templates ensures the language is legally correct while letting you complete the document yourself.

What happens if I become incapacitated without a power of attorney?

Your family will need to petition the probate court for a conservatorship (for financial decisions) or guardianship (for personal decisions). This process typically costs $3,000 to $5,000 in legal fees, takes several months, and requires ongoing court supervision. A power of attorney that you complete yourself for under $100 prevents all of this.

Do I need a trust if I already have a will?

Not necessarily. A will is sufficient for many Michigan seniors, especially if your estate is straightforward and your primary concern is making sure the right people inherit your assets. A trust adds value primarily if you want to avoid probate, keep your affairs private, or need to control how and when beneficiaries receive their inheritance. If avoiding probate on your home is the main goal, a Lady Bird deed may be simpler.

At what age should I start thinking about Medicaid planning?

Ideally, at least five years before you might need nursing home care, because of Michigan's five-year look-back period on asset transfers. That said, there are strategies available even in crisis situations. The basic estate documents (will, power of attorney, healthcare directive) should be done as soon as possible regardless of Medicaid timing.