Funding a Trust in Michigan: What It Actually Means

Most people believe that once they sign their Trust, it’s complete.

Not true. A Trust only works if it is funded.

Under Michigan’s Estates and Protected Individuals Code (“EPIC”), a Trust becomes legally effective only when assets are transferred to it or are otherwise subject to the Trustee’s control (MCL 700.7401). If assets are never transferred, the Trust remains an empty document — and probate will still be required.

What Does “Funding the Trust” Mean?

Funding a Trust means transferring ownership or titling of assets from you individually to your Trust. After funding, the Trust becomes the legal owner (no longer you). 

When assets are properly funded:

• They avoid probate
• The Successor Trustee can control and distribute assets without court involvement
• Your wishes are carried out efficiently and privately

Step-by-Step: How to Fund Your Michigan Trust

Step 1: Create the Trust

You (the Grantor) sign your Trust and name a Trustee (which can be yourself) and Successor Trustee. EPIC governs Trust authority and administration (MCL 700.7817).

Step 2: Inventory Your Assets

Make a list of everything you own:

• Bank accounts
• Real estate
• Investments
• Business interests
• Personal property (furniture, jewelry, collectibles)

Step 3: Transfer Ownership to the Trust

Different asset types require different transfer methods under Michigan law.

How to Transfer Ownership to the Trust (by Asset Type)

1. Bank and Financial Accounts (Contact your bank)

• Benefit the account, or retitle the account, to the Trust
• Provide a Certificate or Affidavit of Trust

2. Real Estate

• Execute and record a Quit Claim Deed, Warranty Deed, or Enhanced Life Estate Deed to the Trust 

*Many lenders require temporary removal from the Trust during refinancing, then allow reconveyance after closing.

3. Personal Property (Jewelry, Artwork, Furniture, Collectibles, ect…)

• Sign and date an ‘Assignment of Personal Property’ document.
• Michigan recognizes personal property lists (MCL 700.2513).

4. Business Interests (LLC, Partnership, Corporation)

• Sign and date an ‘Assignment of Interest’ or ‘Stock Transfer’ document
• Update company Operating Agreement or Bylaws to reflect Trustee ownership

5. Life Insurance

• Contact your life insurance company
• Designate your spouse as the primary beneficiary
• Designate your Trust as the contingent beneficiary, which operates as a valid non-probate transfer under MCL 700.6101

6. Retirement Accounts (IRA, 401(k), etc.)

• Contact your financial institution or financial planner
• Designate the Trust as contingent beneficiary, which operates as a valid non-probate transfer under MCL 700.6101
• Do NOT transfer ownership (retitle the retirement account) — IRS treats it as a full distribution

Name of your Trust

For a Single Person Trust

When benefitting or retitling assets to your Trust, you use your Trust name “John Doe, Trustee of the Doe Family Living Trust dated January 15, 2025.”

For Joint Marital Trusts

“John Doe and Jane Doe, Trustees, or his/her/theirs, Successor Trustees under the Doe Family Living Trust dated January 15, 2025.”

After the Trust Is Funded

Once assets are titled to the Trust, Trustees and Successor Trustees have full authority to manage assets (MCL 700.7817)

Keep in mind some assets avoid probate (MCL 700.6101)

Review funding any time you:

• Buy real estate
• Open new accounts
• Begin a new life insurance policy
• Start a business
• Refinance property

Unfunded assets = probate.

Funded assets = controlled by your Trust.

Final Thoughts

1. A Trust without funded assets is like a safe without anything inside.
2. Funding is what makes your Michigan Trust work.
3. It ensures your successor Trustee can step in immediately and your beneficiaries receive what you intended — without court involvement.

Prime Trust & Wills Platform, LLC 

Prime Trust & Wills Platform allows you to easily create your Will, Trust, Power of Attorney, and Healthcare Directive to ensure you get peace of mind, your assets pass to your loved ones, and taxes are minimized or eliminated.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified Michigan estate planning attorney before making decisions based on this content.