Thanks to our friend Rebecca Wrock, a partner at Varnum LLP, for contributing this article.
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Choosing how to title your real estate is more than paperwork—it’s about aligning ownership with your goals for creditor protection, probate avoidance, taxes, and family stewardship. Here is a practical framework under Michigan law to help you think through your goals and circumstances ahead of discussing with an estate planning attorney.
Single Clients: Revocable Trust Ownership.For unmarried clients, titling your home in your revocable living trust is often the cleanest path. There is no spousal creditor protection to preserve, probate is avoided, and you eliminate the risk that a ladybird deed transferring to a trust could uncap property taxes at death. Similarly, trusts cover contingency plans that ladybird deeds to individual beneficiaries generally do not. Trust ownership also simplifies incapacity planning and enables tailored distribution provisions without the delays and public nature of probate.
Married Clients: Matching Title to Risk and Intent
Own as Tenants by the Entireties (for creditor protection).If one or both spouses faces higher creditor risk—think professional liability, business exposure, or personal guarantees—keeping the property titled as tenants by the entireties offers a strong layer of protection against the creditors of only one spouse. In these cases, the marginal risk of probate from simultaneous or near-simultaneous deaths is typically outweighed by the creditor shield. This approach is especially sensible where the property will likely be sold after the second death rather than retained by the family.
Transfer to Revocable Trusts Now (for probate avoidance and legacy intent).If creditor risk is low, and your priority is avoiding probate while ensuring the home stays in the family, moving the property into one or more revocable trusts can be the better fit. This structure enables continuity of management on incapacity, custom distribution terms, and smoother succession. The case is stronger if you carry a solid umbrella liability policy to further mitigate creditor concerns.
Use a Ladybird Deed (for streamlined transfer and sale after death).Where probate avoidance is paramount, creditor risk is low, and the property is likely to be sold after death, a ladybird deed can efficiently pass title outside probate while preserving your lifetime control. This can be a cost-effective, targeted solution—again, best paired with a robust umbrella policy to backstop liability exposure.
Ultimately, title strategy should be tailored to your creditor profile, desire to keep or sell the property after death, and your priorities around privacy and administration.
Disclosures
This discussion reflects Michigan law and is a general overview, not legal advice. Proper recommendations depend on your specific goals, assets, liabilities, insurance, and family dynamics. Ownership by LLCs or certain irrevocable trusts may be more appropriate for some families. Consider a personalized review to select the right approach.
This material has been prepared for informational purposes only and should not be construed as a solicitation to effect, or attempt to effect, either transactions in securities or the rendering of personalized investment advice. This material is not intended to provide, and should not be relied on for tax, legal, investment, accounting, or other financial advice. You should consult your own tax, legal, financial, and accounting advisors before engaging in any transaction. Asset allocation and diversification do not guarantee a profit or protect against a loss. All references to potential future developments or outcomes are strictly the views and opinions of Richard W. Paul & Associates and in no way promise, guarantee, or seek to predict with any certainty what may or may not occur in various economies and investment markets. Past performance is not necessarily indicative of future performance.