Petition and Order for Assignment Michigan (PC 556): How to Use This Small Estate Shortcut

Most people searching for Michigan probate shortcuts land on the Transfer by Affidavit — the process where you simply present a notarized form to a bank and walk away with the funds. But that shortcut only works when the estate contains no real property. When there's a house in the mix, there's a different form: the Petition and Order for Assignment (SCAO Form PC 556).

This is Michigan's court-ordered summary procedure for small estates that include real property. It bypasses the full probate process — no Letters of Authority, no Personal Representative appointment, no creditor publication period — but it does require a brief court filing and a judge's order.

Here's exactly how it works and when you can use it.

What Is the Petition and Order for Assignment?

The Petition and Order for Assignment is a simplified probate procedure governed by MCL 700.3982. It allows the county probate court to issue a direct order assigning a decedent's property to:

1. The person who paid the funeral bill (reimbursed up to the amount of the bill, with priority over other heirs)
2. The rightful heirs or surviving spouse for all remaining assets

The court does not appoint a Personal Representative. There is no Letters of Authority issued. The order itself serves as the legal transfer instrument. For real estate, the court order is recorded with the county Register of Deeds to perfect the title transfer.

Who Can Use PC 556?

You qualify for the PC 556 procedure when:

The total probate estate value is at or below $53,000 (the 2026 inflation-adjusted threshold under MCL 700.3982). This includes both personal property and real property.

The real estate lien deduction applies. For deaths in 2026, you can deduct up to $264,000 in secured mortgage balances from the gross value of real property when calculating whether the estate qualifies. This is a critical update from Public Act 1 of 2024 (Senate Bill 129).

Example: A decedent owns a home appraised at $290,000 with a $248,000 mortgage, plus $3,000 in a checking account. Without the lien deduction, the gross estate is $293,000 — far above the $53,000 threshold. With the deduction: $290,000 - $248,000 = $42,000 in net real estate value, plus $3,000 personal property = $45,000 total. That estate qualifies for PC 556.

There is no pending application for a Personal Representative. If formal or informal probate has already been opened by someone else, PC 556 is no longer available.

When PC 556 Is Better Than the Transfer by Affidavit

The simpler Transfer by Affidavit (PC 598) is preferable when the estate has no real property — you wait 28 days and present the affidavit directly to financial institutions with no court involvement. But PC 556 becomes necessary in these situations:

• The estate includes real property — banks and title companies will not accept a personal affidavit to transfer a deed. You need a court order.
• Financial institutions refuse the affidavit — some banks and credit unions routinely reject Transfer by Affidavit forms regardless of eligibility. A court order forces compliance.
• The funeral bill reimbursement priority matters — if someone paid the funeral out of pocket and needs reimbursement, PC 556 specifically provides that reimbursement before other heirs receive anything.

Step-by-Step: How to File PC 556

Step 1: Confirm Eligibility

Before filing, calculate the net probate estate value:

• Add up all assets held solely in the decedent's name (bank accounts, personal property, real estate net of liens)
• Deduct mortgage balances from real property values (up to $264,000 in lien deductions for 2026)
• Confirm the total is at or below $53,000
• Confirm no probate application is pending with the county court

Step 2: Gather Required Documents

You'll need to bring or attach:

• Certified death certificate — the court will not accept a photocopy
• Proof of funeral expenses — either a paid receipt showing the bill was satisfied, or an outstanding bill showing what remains due. The court order will reimburse the payer of the funeral bill first.
• Evidence of the estate's value — bank statements, a property tax bill showing the State Equalized Value, or a recent appraisal for real property
• Evidence of the mortgage balance — a statement from the lender showing the outstanding loan balance as of the date of death (required to support the lien deduction)
• Identification of heirs — names and addresses of all persons entitled to receive the estate assets (surviving spouse, children, or other heirs)

Step 3: Complete the PC 556 Form

The Petition and Order for Assignment is a two-part form: the petition portion (completed by the filer) and the order portion (completed and signed by the probate judge or register). The petition section requires:

• Decedent's name, address, and date of death
• A description of all estate assets and their values
• Identification of secured debts (mortgages) to support the lien deduction calculation
• Names and relationships of all heirs
• Name and amount paid by the person who covered funeral expenses
• A statement that no personal representative application is pending

Step 4: File with the County Probate Court

File the completed PC 556, the death certificate, and the funeral expense documentation at the probate court in the county where the decedent resided or owned real property.

Filing fee: $25, plus the statutory Inventory Fee calculated on the net estate value. For a $45,000 net estate, the inventory fee is approximately $144.

Step 5: Court Review and Order Issuance

The probate judge or register reviews the petition. In most cases, no hearing is required — the review is administrative, done on the papers. If the petition is complete and the eligibility calculations are correct, the court issues the Order portion of PC 556, directing:

1. Payment of funeral expenses to the person who covered the bill (up to the amount paid), from estate assets
2. Distribution of all remaining assets to the surviving spouse or heirs as specified

Step 6: Execute the Transfers Using the Court Order

Once you have the signed court order:

For bank accounts and personal property: Present the court order (and the death certificate) to the financial institution. The order legally compels them to release the funds.

For real estate: Record the certified court order with the county Register of Deeds. The flat recording fee is $30 for most Michigan counties (under the standardized fee established by Public Acts 224–232 of 2016). Wayne County may charge a slightly different rate.

After recording, file a Property Transfer Affidavit (Form L-4260) with the local city or township assessor within 45 days. This is required under Public Act 415 of 1994 regardless of how the property transferred. Failure to file results in penalties.

What PC 556 Does Not Cover

The Petition and Order for Assignment is a summary procedure. It's appropriate for straightforward small estates — it does not handle:

• Creditor disputes. If creditors are contesting the distribution, you need full estate administration.
• Title disputes. If ownership of the real estate itself is contested (e.g., a disputed deed, an unrecorded deed, a lien dispute), PC 556 cannot resolve it.
• Business interests. Complex business assets in the estate require full administration.
• Insolvent estates. If the estate's debts exceed its assets, the strict priority payment rules of MCL 700.3805 must be applied through formal administration — you can't simply divide assets under PC 556 and ignore creditors.

PC 556 vs. PC 598: Which Form Do You Need?

For most families dealing with a small estate that includes a heavily mortgaged home, the PC 556 procedure — with the lien deduction calculation — is the most practical path to settling the estate without going through full probate.

The Michigan Probate Process Guide includes the complete eligibility calculation worksheet for both the $53,000 threshold and the $264,000 lien deduction, along with line-by-line guidance for completing the PC 556 petition.

See more Michigan guides →