The following developments in Michigan Estate Planning Law may be of interest to you:

 

1. Michigan Unitrust Act & Trust Law Modernization

  • House Bill 4033 (Unitrust Act) passed the Michigan House in April 2025. It allows fiduciaries to convert traditional income trusts into unitrusts, introducing distribution methods aligning with national estate planning practices Michigan House Republicans.

  • House Bill 4034 (companion to HB 4033) clarifies technical aspects of the Uniform Statutory Rule Against Perpetuities, especially regarding nonvested property interests and powers of appointment Michigan House Republicans.

  • Earlier, in mid-2024, House Bill 5110 (the Michigan Unitrust Act) was passed, granting estate planners greater flexibility in trust investment and management, especially for legacy trusts created under outdated standards Michigan House RepublicansMichigan House Republicans.

  • Additionally, Rep. Doug Wozniak introduced further legislation in May 2025 to clarify Michigan’s Estates and Protected Individuals Code—specifying beneficiary definitions, enhancing court authority to appoint trust enforcers, and addressing no-contest clauses Michigan House Republicans.

2. Probate & Estate Process Enhancements

In February 2024, Public Acts 1–4 streamlined probate procedures:

  • Increased the value thresholds for vehicle and watercraft transfers outside probate for surviving spouses or heirs.

  • Raised the amount a minor can receive as a gift without court oversight Michigan House Republicans.

3. Uniform Power of Attorney Act (UPOAA)

Effective July 1, 2024, Michigan implemented the UPOAA, replacing earlier POA provisions with a modernized framework:

  • Third parties (banks, etc.) must accept a valid POA and may face sanctions for refusals.

  • Co-agents, springing powers, and stricter liability for agent misconduct (including treble damages for embezzlement) are now codified.

  • The new law offers statutory clarity with a standardized POA form while streamlining execution and acceptance Ager Law OfficeCollens Estate Law.

4. Other Key Updates Impacting Estate Planning

  • Tax Planning (Federal and State):

    • With the Tax Cuts and Jobs Act (TCJA) set to sunset by end of 2025, the generous $13.6–$14 million federal estate tax exemption may revert to around $7 million per individual in 2026. Michigan residents should consider accelerated gifting strategies during this "bonus exclusion" window Estate Planning & Elder LawwoodkullMarketWatchReddit+1.

  • Michigan Has No Estate or Inheritance Tax but federal thresholds remain key; advanced planning remains critical woodkull.

  • Probate Simplification for Small Estates: New streamlined options are now available for estates valued under approximately $51,000 Estate Planning & Elder Law.

  • Digital Asset Access: Michigan has enacted the Uniform Fiduciary Access to Digital Assets Act (UFADAA)—enabling fiduciaries to manage digital assets (accounts, cryptocurrency, etc.) through estate plans woodkull.

  • Medicaid Estate Recovery remains a consideration. Asset protection strategies—such as irrevocable trusts or annuities—are often used to safeguard assets while preserving Medicaid eligibility woodkull.

  • New R&D Tax Credits (2025): Michigan now offers certain R&D tax credits—useful for business or family-office succession plans Estate Planning & Elder Law.

5. Healthcare and Medicaid-Related Adjustments

  • Effective April 1, 2025, Michigan:

    • Legalized surrogacy, simplifying legal parental recognition after birth.

    • Modernized name-change procedures—no longer requiring fingerprinting or newspaper publication in many cases.

    • Increased the Medicaid countable asset limit from $2,000 to $9,660, granting financial flexibility for Medicaid recipients planning long-term care Bassett Murray Law Group.

What This Means for Michigan Residents

Area Implications
Trusts Greater flexibility and clarity! Consider unitrust conversion and updated governing rules.
Probate Simpler and quicker for many estates; especially smaller ones and vehicle transfers.
POAs UPOAA makes Powers of Attorney more functional with stronger enforcement and clarity.
Tax Strategy Act now before federal exemption drops—review gift strategies and trust designs.
Digital Assets Ensure online accounts and crypto are addressed via UFADAA-compliant provisions.
Medicaid Planning With higher asset limit and estate recovery concerns, trusts and other tools matter.
Family Planning Surrogacy and personal records (like name changes) are now easier and more private.

 

Additional Perspective

A national trend reinforces proactive planning. Only 46% of U.S. adults have a will, yet with an estimated $72 trillion wealth transfer underway, experts urge regular estate plan reviews—especially in light of imminent tax law changes MarketWatch.

Summary

Michigan has entered a pivotal phase of estate planning reform with:

  • Modern trust and probate laws

  • A robust POA framework

  • Greater legal clarity for surrogacy and Medicaid planning

  • Tools to effectively handle digital assets

  • A compelling window for tax-savvy wealth transfers

Next Steps:
To navigate these developments, it’s wise to:

  • Review or update your estate plan, especially your trust, POA, and digital asset designations.

  • Consult an estate planning attorney to ensure your documents reflect the most current Michigan statutes and federal tax landscape.

  • Review regularly—especially before 2026—to leverage or mitigate potential tax changes.

Let me know if you'd like deeper insights into any specific part—for instance, how to convert a trust to a unitrust, or how UFADAA affects crypto planning.