If you're married and own a home in Michigan, you may already have automatic probate avoidance on that home - and not even know it. Michigan tenancy by the entirety (TBE) is a form of joint ownership available only to married couples that automatically passes the property to the surviving spouse at the first death with no probate, no filing, and no cost. Since Michigan's 2015 amendment (MCL 557.151), certain financial accounts also qualify. This guide covers exactly how it works, how to verify your deed is titled right, what it does and doesn't protect against, and what you still need on top of it. Plain-English, DIY-audience, 2026-current Michigan law.
The 30-Second Version
- Married Michigan couples can hold real estate and (since 2015) certain financial accounts as "tenants by the entirety."
- At the first death, the property passes automatically to the surviving spouse - no probate, no filing, no fee.
- Individual creditors of one spouse generally cannot force sale of TBE property to collect a debt.
- If you're already deeded this way, you don't have to do anything. If not, retitling costs a small deed recording fee.
- TBE only lasts through the first death - the second-to-die still needs a Lady Bird deed, trust, or will.
What Tenancy by the Entirety Actually Is
Tenancy by the entirety is one of three forms of joint ownership Michigan recognizes:
- Tenancy in common - each owner has a separate share that passes through probate at their death (default for unmarried co-owners)
- Joint tenancy with right of survivorship - available to anyone; automatically passes to the survivor
- Tenancy by the entirety - available only to married couples; automatically passes to the survivor AND provides additional creditor protection
Michigan is one of a minority of states that recognizes TBE for both real estate and financial accounts. Not all states do.
Who Can Hold TBE
- Legally married couples (Michigan recognizes same-sex marriage since 2015)
- Both spouses must be living at the moment of titling
- Property must be jointly titled with unity of time, title, interest, and possession
- The deed or account must clearly state "husband and wife," "as tenants by the entirety," or similar language
How to Check Your Michigan Deed
Do this DIY in 15 minutes:
Step 1: Find Your Deed
- Look in your home closing folder
- Search your Michigan county register of deeds online (most counties have free web search)
- Pontiac / Oakland County: https://www.oakgov.com/rod
- Grand Rapids / Kent: https://www.accesskent.com
- Detroit / Wayne: https://www.waynecounty.com/elected/register
Step 2: Read the Grantee Line
Look for one of these patterns naming both spouses:
- "John Doe and Jane Doe, husband and wife" (TBE - presumed)
- "John Doe and Jane Doe, as tenants by the entirety" (TBE - explicit)
- "John Doe and Jane Doe, as joint tenants with right of survivorship" (JTWROS - not TBE, but still avoids probate)
- "John Doe and Jane Doe" (ambiguous - Michigan case law generally presumes TBE if grantees are married when deed was signed)
- "John Doe and Jane Doe, as tenants in common" (BAD - not survivorship, will probate at first death)
Step 3: If It's Wrong, Retitle
If your deed is currently in only one spouse's name or as tenants in common, you can retitle by signing a new quit claim deed from both current owners to yourselves as tenants by the entirety.
- Michigan quit claim deed form: available at your county register of deeds or online
- Recording fee: $30 in most Michigan counties
- Transfer tax: usually exempt for spouse-to-spouse transfers
- Time: 30-60 minutes to prepare + record
See our Michigan Lady Bird deed guide for the closely related lifetime deed option.
Michigan Financial Accounts Since 2015
Michigan MCL 557.151 (effective 2015) extended TBE to certain financial accounts. This was a significant expansion because it added creditor protection to bank accounts, brokerage accounts, and other holdings for married Michigan couples.
Qualifying Accounts
- Bank accounts (checking, savings, money market, CDs)
- Brokerage accounts (non-retirement)
- Some corporate stock certificates
Requirements Under MCL 557.151
- Both spouses must be account holders
- Account title must explicitly state "as tenants by the entirety" or reference MCL 557.151
- Both must have equal rights to withdraw during their joint lifetime
Does NOT Include
- Retirement accounts (401(k), IRA - see our retirement beneficiary guide)
- Real estate held in a trust
- Life insurance
- Business interests held in an LLC or corporation
How to Set It Up
- Ask your Michigan bank or brokerage to open a "tenants by the entirety" joint account
- Not all banks offer it - some larger national banks default to JTWROS
- Michigan credit unions and Michigan-based banks are generally most familiar with TBE
- Some banks require a separate signature card referencing MCL 557.151
Creditor Protection Benefit
The most powerful feature of TBE is that individual creditors of one spouse generally cannot reach TBE property.
Example
Husband is sued individually for a car accident. He loses. Judgment creditor tries to force sale of the marital home. If deed is TBE - court blocks it. If deed is JTWROS - creditor can force partition. If deed is TIC - creditor can force sale.
Exceptions to TBE Creditor Protection
- Joint debts of both spouses (creditor can reach)
- IRS tax debts (federal supremacy overrides Michigan)
- Debts incurred BEFORE the marriage on the property title
- Bankruptcy of one spouse - trustee cannot force sale but survivor takes free of individual debt
- Divorce - see below
Real-World DIY Value
For Michigan couples with modest assets and one spouse in a higher-liability profession (medicine, driving, small business, contracting), TBE alone is $10,000+ of asset-protection value for free. This is a major reason Michigan family attorneys recommend TBE deeds by default.
What Happens at the First Death
The surviving spouse automatically owns 100% of the TBE property. No probate, no filing, no court order needed.
Practical Steps After First Death
- File a copy of the death certificate with the Michigan county register of deeds (recording fee ~$30)
- For financial accounts, provide death certificate to the bank
- Michigan real estate transfer tax exemption applies to spouse-to-spouse survivor transfers
- Property tax uncapping does NOT occur (MCL 211.27a spousal transfer exception)
After First Death, TBE Ends
The survivor now owns everything outright. TBE is gone. Now the survivor still needs a plan for the second death - options include:
- Lady Bird deed on real estate to remaining heirs (see our Lady Bird deed guide)
- Revocable trust holding real estate and other assets
- Payable-on-death designations on bank accounts (see our POD/TOD guide)
- Simple will directing distribution
What Happens in Divorce
Divorce converts TBE property to tenancy in common (each spouse owns 50% separately). The Michigan divorce judgment typically then distributes it.
- Deed may or may not be automatically updated - always verify
- Some divorce judgments transfer real estate to one spouse; others order sale
- Refinancing to remove ex-spouse from mortgage is separate from deed change
- See our post-divorce estate planning guide for full picture
Real Limits of Tenancy by the Entirety
TBE is powerful but not complete. Its known limits:
- Only for MARRIED couples - unmarried partners can use JTWROS but not TBE and get less creditor protection
- Only through the FIRST death - not a substitute for second-death planning
- Not available on many retirement accounts, life insurance, or LLC interests
- Cannot direct to specific heirs - if you want the second-to-die to go to specific children (not the survivor's later will), TBE alone is not enough
- Doesn't protect against joint debts (both spouses signed)
- Federal tax liens ignore TBE (rare in most Michigan DIY situations)
- Some Michigan banks don't offer TBE accounts, only JTWROS
What You Still Need Beyond TBE
TBE is Step 1 of a Michigan married couple's estate plan. Beyond TBE, most Michigan couples need:
- A will - directs anything not covered by TBE (personal property, retirement leftovers, etc.)
- Second-death planning - Lady Bird deed, trust, or POD/TOD
- Financial Power of Attorney - if one spouse becomes incapacitated (Michigan MCL 556.201)
- Patient Advocate Designation - Michigan-specific healthcare directive (MCL 700.5506)
- Guardian nominations - if you have minor kids
- Trust for special situations - blended family, special-needs beneficiary, or large estate
The CreateMIWill Complete Bundle ($349) covers every one of these gaps for a fraction of what a Michigan attorney charges.
Frequently Asked Questions
How do I know if my Michigan deed is tenancy by the entirety?
Look for grantee language naming both spouses as "husband and wife" or "as tenants by the entirety." Even without explicit TBE language, Michigan generally presumes TBE when spouses take title jointly during marriage.
Does TBE avoid probate at both deaths?
No - only the first death. After first death, the survivor owns 100% and needs their own probate-avoidance plan (Lady Bird deed, trust, or POD/TOD).
Can Michigan same-sex married couples use TBE?
Yes since Michigan legalized same-sex marriage (Obergefell 2015 and Michigan's 2015 amendments).
Can I add TBE to an existing Michigan deed without paying transfer tax?
Yes - spouse-to-spouse transfers are exempt from Michigan real estate transfer tax. You'll pay the $30 recording fee only.
Do all Michigan banks offer TBE accounts?
No. Small Michigan-based banks and credit unions are most likely to know MCL 557.151. Some large national banks default to JTWROS. Ask specifically for "tenants by the entirety" or reference MCL 557.151.
Does TBE protect against the IRS?
No. Federal tax liens can attach to TBE property because federal law overrides Michigan property law here.
What happens if my spouse and I are legally separated but not divorced?
Legal separation does not end TBE in Michigan. TBE continues until divorce is finalized or one spouse dies.
Can I use TBE to protect Michigan real estate from Medicaid recovery?
Limited protection. Michigan Medicaid Estate Recovery generally cannot pursue TBE property during the surviving spouse's lifetime, but the property may be reachable after both die if it hasn't been transferred. See our Michigan Medicaid planning guide.
Do I need to update my will after retitling to TBE?
Not strictly - but it's a good time to review your Michigan will to make sure it correctly handles the second death.
What's the difference between TBE and community property?
Michigan is NOT a community property state. TBE is Michigan's separate concept - a form of joint ownership with survivorship and creditor protection for married couples.
Beyond TBE - Complete Your Michigan Married Couple's Plan
Tenancy by the entirety handles the first death. For the second, plus everything TBE doesn't touch, the CreateMIWill Complete Bundle ($349) delivers Michigan-specific attorney-drafted templates for will, trust, financial POA, Patient Advocate Designation, HIPAA release, Lady Bird deed, and digital asset planner - one downloadable package, no subscription, no additional fees.
Complete Michigan Married Couple Estate Plan
Attorney-drafted Michigan templates covering the second-death gap that tenancy by the entirety leaves - will, revocable trust, financial POA, Patient Advocate Designation, HIPAA release, Lady Bird deed, and digital asset planner.