A valid trust in Michigan covers assets that you properly transfer into it (funding the trust). These assets may include real estate, bank accounts, investments, personal property, and business interests. When you place assets into a trust, they can avoid probate and pass directly to your beneficiaries.
A trust also manages your assets during your lifetime and directs their distribution after your death.
Assets Commonly Included in a Michigan Trust
Real Estate
Your trust can include your primary residence, vacation homes, rental properties, and timeshares.
Financial Accounts
You can transfer checking accounts, savings accounts, CDs, and brokerage accounts into your trust.
Investments
Trusts may hold stocks, bonds, and business interests such as LLCs or corporations.
Personal Property
You can include valuable personal items like jewelry, artwork, vehicles, and antiques.
Life Insurance
You may name your trust as the beneficiary of a life insurance policy, so proceeds flow directly into the trust.
Digital Assets
Trusts can also include cryptocurrency, online accounts, and digital media.
What Can a Michigan Trust Be Used For?
Michigan law allows you to create a trust for any lawful purpose that aligns with public policy. Most trusts serve one or more of the following purposes:
Incapacity Planning
A successor trustee can step in and manage your affairs immediately if you become ill or incapacitated—without the need for a court-appointed conservator.
Probate Avoidance
Assets held in a trust pass directly to your beneficiaries, avoiding the often lengthy (6–18 months) and public probate process.
Disability Support Planning
A Special Needs Trust (SNT) allows you to provide for a loved one with disabilities without affecting their eligibility for benefits like Medicaid or SSI.
Creditor Protection
Certain irrevocable trusts can protect assets from creditors or lawsuits. However, revocable trusts typically do not offer this protection during your lifetime.
Conditional Distributions
You can set clear guidelines for distributions, such as requiring a beneficiary to reach a certain age, graduate from college, or meet other milestones.
Key Takeaway
A trust only controls the assets you place into it. If you do not transfer an asset into the trust—or name the trust as a beneficiary—that asset will not be governed by the trust and may still go through probate.