By Moshe B. Newman, Attorney · Published July 2026
A revocable living trust only avoids probate for assets that are actually titled in the trust’s name — and for most Michigan families, the single most important asset to get into the trust is the house. Signing a beautiful trust document and leaving the home titled in your individual name is one of the most common (and most expensive) estate planning failures we see: the family ends up in probate court anyway, for the very asset the trust was built around. Here is what transferring a Michigan home into a trust actually involves, what it costs at the register of deeds, and the tax traps a properly prepared deed avoids.
Real estate moves by deed. Transferring your home into your trust means a new deed is signed and recorded, conveying the property from you as an individual to you (or another trustee) as trustee of your trust. You don’t lose control of anything: with a revocable trust, you typically remain the trustee, the beneficiary during your lifetime, and the person who can amend or revoke the whole arrangement. The change is one of title, not of who is in charge.
In a well-run engagement, the transfer generally follows this path:
Michigan caps annual increases in a property’s taxable value, and the cap comes off when a “transfer of ownership” occurs. Long-time homeowners often pay taxes on a taxable value far below market value, so an accidental uncapping is a permanent, compounding cost. The good news: under MCL 211.27a(6)(c), a conveyance to a trust is not a transfer of ownership when the settlor (or the settlor’s spouse, or both) conveys the property to the trust and the settlor and/or spouse is the sole present beneficiary. That is precisely the structure of a standard revocable living trust — so a properly drafted transfer leaves the taxable value capped exactly where it was.
The statute goes further for family homes: since December 31, 2014, conveying residential real property to a trust whose sole present beneficiaries are close family members — a child, parent, sibling, or grandchild of the settlor or the settlor’s spouse — also avoids uncapping, provided the property isn’t put to commercial use afterward. The definitions here are technical, and the trust’s beneficiary provisions have to line up with them, which is one of several reasons deed work belongs inside the estate planning engagement rather than bolted on afterward.
Most mortgages contain a due-on-sale clause, and homeowners reasonably worry that deeding the house to a trust could trigger it. For owner-occupied residential property, federal law is on your side: the Garn-St Germain Depository Institutions Act generally bars lenders from enforcing a due-on-sale clause when a borrower transfers the home into an inter vivos trust in which the borrower is and remains a beneficiary and continues to live in the property. Reviewing the loan documents is still part of a careful transfer, and investment or commercial properties deserve a closer look.
At The Legacy Law Firm, we don’t treat funding as an upsell. Our flat-fee trust packages — $4,000 for individuals, $5,000 for couples, designed for straightforward estates up to roughly $2,000,000 — include the deeds that transfer your real property into the trust, along with the trust itself, pour-over wills, powers of attorney, healthcare documents, five hours of consultation, and the signing appointment. The out-of-pocket government charge is modest: the $30 recording fee per deed, with the transfer taxes exempt in the typical case as described above. Every fee is quoted before any work begins.
Generally no. A deed moving your home into your own revocable trust is normally given for no consideration, and instruments where the consideration is under $100 are exempt from both the state transfer tax (MCL 207.526(a)) and the county transfer tax (MCL 207.505(a)). The exemption must be stated on the face of the deed. The register of deeds still charges the standard $30 recording fee under MCL 600.2567.
Not if it is done correctly. Under MCL 211.27a(6)(c), a conveyance to a trust is not a “transfer of ownership” when the settlor (or the settlor’s spouse, or both) conveys the property and the settlor and/or spouse is the sole present beneficiary of the trust. Your taxable value stays capped. Getting the trust terms and the assessor paperwork right is essential, because an uncapping mistake raises taxes permanently.
For most owner-occupied homes, no. The federal Garn-St Germain Depository Institutions Act generally prevents lenders from enforcing a due-on-sale clause when a borrower transfers a residential property into an inter vivos (living) trust in which the borrower remains a beneficiary and continues to occupy the home. Reviewing the specific loan documents is still a sensible part of the process.
Whether you need a full trust-based plan or already have a trust that was never funded, the starting point is the same: a free 20-minute screening call where we hear your situation and tell you plainly what it needs. If deeper analysis makes sense, our $500 working session digs into your assets and goals in detail — and the $500 is credited toward your plan if you move forward with us.
This article is general information about Michigan law, not legal advice, and does not create an attorney-client relationship. Laws and dollar thresholds change; figures current as of 2026. For advice on your specific situation, schedule a consultation.