Mom or Dad left the house to all the kids. Now one sibling wants to move in, one wants to sell right away, and one lives out of state and just wants their share. This is one of the most common, and most emotional, situations Michigan families face after a death. Here's how co-ownership works in Michigan, what your options are, and what the law does if you can't agree.
The Short Version
- When a Michigan house goes to two or more people, they usually own it as tenants in common, each with a share.
- Your choices are to keep it together, sell it and split the money, or have one sibling buy out the others.
- If you can't agree, any co-owner can ask a circuit court to divide or sell the property (a partition action).
- Since 2025, Michigan's Uniform Partition of Heirs Property Act gives family co-owners a chance to buy out a sibling who forces a sale.
- Parents can avoid most of this by leaving the house to a trust with clear instructions.
How You End Up Co-Owning
Siblings usually end up sharing a house in one of these ways:
- A Lady Bird deed naming all the children. At the parent's death, the children become the owners. See what happens after death with a Lady Bird deed.
- A will or no will. The house goes through probate, and the personal representative deeds it to the heirs.
- A trust that distributes the house to the children instead of selling it.
Unless the deed or will says otherwise, Michigan law treats the siblings as tenants in common. Under MCL 554.44, "all grants and devises of lands, made to 2 or more persons ... shall be construed to create estates in common, and not in joint tenancy, unless expressly declared to be in joint tenancy."
What Co-Ownership Means
As tenants in common:
- Each sibling owns a fractional share, usually equal unless the documents say otherwise.
- Each of you has the right to use the whole property. One sibling can't lock the others out.
- There's no survivorship. If a sibling dies, their share goes to their own heirs or beneficiaries, not to the other siblings.
- Each sibling can sell or give away their own share, but a buyer of a partial share is rare.
- Selling or mortgaging the whole house generally requires everyone to sign.
Expenses don't wait for agreement. Property taxes, insurance, utilities, and maintenance keep coming. Agree early on who pays what, and keep receipts.
Your Three Options
1. Keep it together
Works when everyone gets along and has a shared goal, such as a family cottage or a rental. Put a written co-ownership agreement in place covering who pays expenses, who can use it and when, how decisions are made, and how someone can exit later. Without an agreement, disagreements tend to grow over time.
2. Sell and split the money
Often the cleanest outcome. Everyone signs the listing agreement and the deed, and the net proceeds are divided by ownership share after paying the mortgage, closing costs, and any agreed reimbursements, for example to a sibling who paid the property taxes.
3. One sibling buys out the others
Common when one sibling wants to live there. Get an independent appraisal so the price is fair, decide how expenses already paid will be credited, and have the buying sibling get financing if needed. The selling siblings sign deeds transferring their shares. Record the deed with the county register of deeds.
If You Can't Agree: Partition
Michigan doesn't force co-owners to stay together forever. Under MCL 600.3304(1), "all persons holding lands as joint tenants or, subject to chapter 34, as tenants in common may have those lands partitioned." Partition cases are filed in circuit court and, under MCL 600.3301, "such actions are equitable in nature," which means the judge can weigh fairness, including who paid for what.
A court can physically divide land (partition in kind) or order the property sold and the money divided. A single house usually can't be split, so a sale is a common result. Partition is slow and expensive, with attorney fees on both sides, so it's best used as a last resort or as leverage to reach a deal.
Michigan's Heirs Property Buyout Right
Michigan adopted the Uniform Partition of Heirs Property Act, found in Chapter 34 of the Revised Judicature Act (MCL 600.3401 and following). It adds protections when inherited family property ends up in a partition case.
When it applies. The Act covers "heirs property," which it defines as property held in tenancy in common where, when the case is filed, there's no written agreement binding all co-owners on partition, at least one co-owner "acquired title from a relative, whether living or deceased," and relatives hold at least 20 percent of the interests or make up at least 20 percent of the co-owners (the statute lists the exact tests).
What it changes. If the property qualifies:
- The court determines fair market value, usually by ordering an appraisal, unless all co-owners agree on a value (MCL 600.3406).
- If a co-owner asks for a sale, the other co-owners get notice and, within 45 days, can elect to buy that co-owner's share. The price is the appraised value times that co-owner's fractional share (MCL 600.3407).
- If no one buys, the court must consider dividing the property before ordering a sale (MCL 600.3408), and a sale is normally an open-market sale rather than an auction (MCL 600.3410).
In plain English: a sibling can still push for a sale, but the siblings who want to keep the house get a fair chance to buy them out at appraised value first.
Taxes and Costs to Know
- Stepped-up basis. Inherited property generally gets a new tax basis equal to its value at death. For a Lady Bird deed, the Michigan Bar Journal explains that "little or no taxable gain should result from a sale of the property promptly after death of the grantor." Talk to a tax preparer before you sell.
- Living there first. If a sibling moves in and later sells, the IRS home-sale exclusion (up to $250,000 of gain, $500,000 for joint filers) generally requires owning and living in the home for 2 of the 5 years before the sale.
- Property taxes. Whether taxable value "uncaps" depends on who receives the home and how it's used. A later buyout between siblings can raise separate questions. See Michigan inherited home property taxes and confirm with your local assessor.
Parents: How to Prevent This
If you're planning ahead, you can spare your children most of these problems:
- Use a trust and give your trustee instructions. A funded living trust lets one successor trustee manage and sell the house without every child having to sign. You can say whether the house should be sold, offered to a child at appraised value first, or kept for a period.
- Pick the right trustee. See how to choose a successor trustee.
- If you use a Lady Bird deed, know that naming several children usually makes them co-owners. Some families name a trust as the Lady Bird beneficiary so the trustee handles the house. See Lady Bird deed vs. living trust.
- Talk to your children now. Knowing who wants the house, and who doesn't, makes it much easier to write the right instructions.
Frequently Asked Questions
Can my sibling live in the house rent-free?
Each co-owner generally has the right to use the whole property. Whether the others can get credit for that use usually comes up only if the property is partitioned, where the court can weigh the equities. Put an agreement in writing to avoid disputes.
Can one sibling sell the house without the others?
Not the whole house. Each co-owner can transfer only their own share. Selling the entire property requires everyone, or a court order in a partition case.
What if a sibling won't pay their share of the taxes?
Keep records of what you paid. In a sale or partition, payments can often be credited back to the sibling who paid them. Don't let taxes go unpaid; Michigan property tax foreclosure can take the house.
Do we need a lawyer?
If you agree on a plan, many families handle a sale or buyout with a real estate agent and title company. If you're heading toward partition, get a Michigan real estate attorney.
Give Your Family a Clear Plan
A trust lets you decide now what happens to the house, with one trustee in charge, so your children don't have to work it out by unanimous agreement. The CreateMIWill Trust Kit ($197) includes an attorney-drafted Michigan revocable living trust with a certificate of trust and instruction and signing guides. The Complete Bundle ($349) adds a Michigan will, durable power of attorney, and patient advocate designation.
Michigan Trust Kit or Complete Bundle
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Sources: MCL 554.44; MCL 600.3301; MCL 600.3304; Uniform Partition of Heirs Property Act, MCL 600.3401 et seq.; Michigan Bar Journal, "Ladybird deeds: Key features and uses"; IRS Topic No. 701.