Alternatives to Full Michigan Probate After a Funeral: What the 2026 Thresholds Allow

Most Michigan families are not required to go through full probate court after a death. The 2026 cost-of-living adjustments to Michigan's Estates and Protected Individuals Code (EPIC) raised the small estate threshold to $53,000 — and a new lien deduction rule allows families to subtract up to $264,000 in real estate mortgages from the estate's value when calculating whether they qualify.

A family with a home worth $280,000 and a $240,000 mortgage has only $40,000 in countable real estate toward that threshold. Add $8,000 in bank accounts and a used car worth $4,000, and the total probate-countable estate is $52,000 — just under the limit. No formal probate required.

Full probate, by contrast, means publishing a notice to creditors in a local newspaper, waiting four months for the creditor claim period to close, filing a comprehensive inventory (PC 577) with the probate court within 91 days of appointment, paying scaled inventory fees, and potentially engaging an attorney whose retainer runs $3,000 to $5,000. For estates that legitimately qualify for the simplified procedures, full probate is not just expensive — it is unnecessary.

Here are the available alternatives and when each applies.

The Three Simplified Paths

Michigan provides three mechanisms for settling small estates without full probate court supervision:

Path 1: Transfer by Affidavit (PC 598) — No Real Property

When it applies: The total probate-countable assets are $53,000 or less, and the estate includes no real property (no house, no land, no mobile home on owned land).

How it works: After a mandatory 28-day waiting period following the death, a successor presents a notarized Affidavit of Decedent's Successor (SCAO Form PC 598) directly to the asset holder — a bank, the Secretary of State, a brokerage. The asset holder releases the funds or transfers the asset to the named successor without any court involvement.

Cost: The affidavit itself costs nothing to file because it isn't filed with any court. Notarization typically costs $5 to $25 at a bank or UPS Store. Certified copies of the death certificate — needed to present with the affidavit — cost $15 to $34 depending on whether you're ordering from the county clerk or the state MDHHS office.

Common use case: A surviving adult child claiming a parent's checking account and savings account at a credit union. The bank reviews the notarized PC 598 and releases the funds directly, bypassing any court process entirely.

Important limitation: This path is for assets held solely in the deceased's name with no co-owner and no beneficiary designation. Accounts with a joint owner or a pay-on-death (POD) beneficiary transfer automatically outside of any estate process — no affidavit needed at all.

Path 2: Petition for Assignment (PC 556) — With Real Property

When it applies: The total estate is $53,000 or less (after the lien deduction), but real property is involved and the family needs court authorization to compel a transfer.

How it works: A family member or executor files a Petition and Order for Assignment (SCAO Form PC 556) with the local probate court. The court reviews the petition, confirms the estate qualifies, and issues an order assigning assets to the appropriate heirs. This is faster than full probate — typically weeks rather than months — and requires no creditor notice period.

Cost: The filing fee for PC 556 is $25, plus a mandatory inventory fee calculated on the estate's value. For an estate at $50,000, the inventory fee is small — typically under $100. Compare this to the $175 filing fee for full informal probate plus the scaled inventory fee and attorney costs.

Common use case: A deceased parent owned a modest home with a large mortgage. After applying the $264,000 lien deduction, the estate falls under $53,000. The surviving child files PC 556 to get a court order transferring the home's title — the fastest legal path to deed the property without full probate.

Path 3: Non-Probate Assets — No Process Required

Some assets bypass the entire estate system regardless of the estate's value. These transfer automatically to named beneficiaries or co-owners:

• Joint accounts with rights of survivorship — transfer to the surviving joint owner immediately at death
• Pay-on-death (POD) bank accounts — transfer to the named beneficiary with only a death certificate and ID
• Transfer-on-death (TOD) investment accounts — same as POD
• Life insurance with a named beneficiary — paid directly to the beneficiary
• Retirement accounts (IRA, 401k) with a named beneficiary — paid directly
• Real estate held in a trust or via Lady Bird Deed — transfers outside of probate automatically

For many Michigan families, the actual "probate estate" — assets that go through any court process — is far smaller than the total estate because the large-ticket items (home, retirement accounts, life insurance) pass outside of probate.

The 2026 Lien Deduction: What It Changes

Before 2026, owning any real property effectively barred many Michigan families from the simplified procedures. A home worth $180,000 with a $150,000 mortgage would have pushed the estate past the small estate limit even though the family's actual equity was only $30,000.

The 2026 rules allow a deduction of up to $264,000 in real estate liens (mortgages, home equity loans, and land contract balances) when calculating the estate's value against the $53,000 threshold. This means:

• A home worth $250,000 with a $240,000 mortgage contributes only $10,000 to the countable estate
• A home worth $300,000 with a $264,000 mortgage contributes only $36,000

This is a significant expansion of who can use simplified procedures. Families with heavily mortgaged homes that would have been forced into full probate under prior rules can now qualify for Petition for Assignment.

One caution: The calculation requires accuracy. Overstating the deductible liens — or misidentifying which property is subject to which lien — can cause a PC 598 affidavit to be rejected by banks or a PC 556 to be denied by the court. If you're unsure about the calculation, the probate court clerk can explain the forms (though they cannot provide legal advice on the calculation itself).

What Full Probate Actually Costs

Understanding what you're avoiding clarifies why the simplified procedures matter:

For a $150,000 estate going through full informal probate with attorney assistance, total costs of $5,000 to $8,000 are not unusual. For the same estate settled through a combination of non-probate transfers and a PC 556 petition, total costs might be $150 to $400.

EPIC Spousal Allowances: Separate From the Estate Calculation

Even when an estate does go through the probate system, Michigan's 2026 EPIC allowances provide important financial protections for the surviving spouse. These allowances are paid from the estate before general creditors receive anything:

These allowances are not tied to the simplified procedure threshold. They apply to any estate going through probate and significantly reduce what creditors can claim.

The Lady Bird Deed: Keeping Real Estate Out of Probate at All

For families where the home's value clearly exceeds the small estate threshold — or where Medicaid Estate Recovery is a concern — the Lady Bird Deed (Enhanced Life Estate Deed) is the most effective pre-death planning tool available in Michigan.

A Lady Bird Deed allows the property owner to retain full control during their lifetime, including the right to sell, mortgage, or transfer the property. At death, the property transfers automatically to a named beneficiary without going through probate. Because it bypasses probate entirely, it is also completely shielded from Michigan's Medicaid Estate Recovery program, which can only pursue assets that pass through the probate estate.

The deed must be prepared and recorded before the owner's death. It requires a deed drafting (typically handled by an elder law attorney for $200 to $500) and recording with the county Register of Deeds ($30 flat fee plus a $5 tax certification from the County Treasurer). The investment is minimal compared to the alternative of losing the home to probate costs or Medicaid recovery.

Who This Guide Is For

• Families who have just completed a funeral and are trying to figure out whether they can settle the estate without a probate attorney
• Surviving spouses who need to understand whether the estate qualifies for simplified procedures and how to claim EPIC allowances
• Adult children settling a parent's estate where the assets are primarily bank accounts, a vehicle, and a modestly mortgaged home
• Anyone who received a referral to a probate attorney and wants to understand whether their situation actually requires one before paying a retainer
• Pre-planners who want to understand how the estate settlement threshold interacts with their current asset structure

Who Needs an Attorney

• Estates where the value clearly exceeds $53,000 after applying all permissible deductions, requiring formal probate administration
• Any situation involving a real estate dispute — a contested deed, a Lady Bird Deed being challenged, or co-ownership complications
• Estates with pending Medicaid Estate Recovery claims, where the state's contractor (operating on a 13.9% commission) is actively pursuing assets
• Beneficiary disputes, creditor challenges to the estate, or situations where a creditor's claim appears to exceed the estate's value
• Internationally held assets, retirement accounts with contested beneficiary designations, or business interests

FAQ

Can I use the Transfer by Affidavit if there is a car in the estate? Yes, if the total estate is under $53,000 and there is no real property. However, vehicle transfers in Michigan after a death now use the TR-40 form series (TR-40a, 40b, and 40c), which replaced the older TR-29 forms in 2026. These are filed with the Secretary of State, not the probate court, and require a $15 title fee. The TR-40 process is separate from the PC 598 affidavit but can be run simultaneously.

The house has a mortgage larger than its current market value. Does that affect the calculation? The lien deduction is capped at $264,000, but it applies to the value of the lien — not the difference between market value and lien. If the home is worth $200,000 and the mortgage is $210,000, the property has negative equity and contributes zero to the estate's probate-countable value. The estate is better positioned for simplified procedures, though there may also be complications in the deed transfer itself if the property is underwater.

How long does a Petition for Assignment (PC 556) take? Processing times vary by county probate court, but most PC 556 petitions are resolved within a few weeks to a month. There is no mandatory four-month creditor claim period in the simplified process — that waiting period applies only to full formal or informal probate.

Does Michigan's estate tax affect any of this? No. Michigan does not impose a state estate tax or inheritance tax. The federal estate tax exemption for 2026 is $15,000,000 per individual — an amount that makes the federal estate tax irrelevant for the vast majority of Michigan families. The primary tax concern after a Michigan death is income tax on inherited retirement account distributions for non-spouse beneficiaries, who must deplete the account within 10 years under the SECURE Act 2.0 rules.

Where do I get the PC 598 and PC 556 forms? Both forms are available from the State Court Administrative Office (SCAO) and from local probate court clerks. Some county probate court websites provide downloadable versions. The Michigan Funeral Laws & Consumer Rights Guide walks through both forms step by step, including how to complete the lien deduction calculation and what documentation to gather before filing.

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