Transfer-on-Death Deed

TRANSFER-ON-DEATH DEED — MICHIGAN

TABLE OF CONTENTS

1. Instructions and Overview
2. Transfer-on-Death Deed Form
3. Revocation of Transfer-on-Death Deed
4. Recording Requirements
5. Multiple Beneficiaries
6. Effect at Transferor's Death
7. Liens, Mortgages, and Encumbrances
8. Enhanced Life Estate (Lady Bird) Deed Alternative
9. State-Specific Notes
10. Sources and References

1. INSTRUCTIONS AND OVERVIEW

Checklist — Before Recording:

☐ Transferor has verified legal ownership of the property

☐ Legal description has been verified against the current deed of record

☐ Property tax identification number has been confirmed

☐ All beneficiaries are identified by full legal name

☐ Deed has been reviewed by a licensed Michigan attorney

☐ Deed has been signed and notarized

☐ Deed will be recorded with the Register of Deeds in the county where the property is located

☐ Transferor understands the deed is revocable and has no effect until death

☐ Transferor understands existing liens and mortgages remain effective

☐ Property Transfer Affidavit (Form L-4260) considerations reviewed

2. TRANSFER-ON-DEATH DEED FORM

TRANSFER-ON-DEATH DEED

Pursuant to Michigan Compiled Laws §§ 700.6501 to 700.6515

Prepared by:
[________________________________]
[________________________________]

Return recorded document to:
[________________________________]
[________________________________]
[________________________________]

Property Address:
[________________________________]
[________________________________]

Tax Parcel Identification Number: [________________________________]

NOTICE

THIS TRANSFER-ON-DEATH DEED DOES NOT TRANSFER OWNERSHIP OF THE PROPERTY UNTIL THE TRANSFEROR'S DEATH. THE TRANSFEROR RETAINS FULL POWER TO SELL, MORTGAGE, ENCUMBER, OR OTHERWISE DISPOSE OF THE PROPERTY DURING HIS OR HER LIFETIME. THIS DEED IS REVOCABLE.

TRANSFEROR INFORMATION

I, [________________________________] ("Transferor"), of [________________________________] (city/township), County of [________________________________], State of Michigan, being the owner of the real property described below, hereby make this Transfer-on-Death Deed pursuant to MCL § 700.6501 et seq.

Date of Birth: [__/__/____]

BENEFICIARY DESIGNATION

I designate the following individual(s) to receive the described real property upon my death:

Primary Beneficiary(ies):

Alternate Beneficiary (if all primary beneficiaries predecease Transferor):

Name: [________________________________]
Date of Birth: [__/__/____]
Address: [________________________________]

PROPERTY DESCRIPTION

The real property subject to this Transfer-on-Death Deed is located in the County of [________________________________], State of Michigan, and is more particularly described as follows:

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Tax Parcel Identification Number: [________________________________]

Commonly known as: [________________________________]

Being the same premises conveyed to the Transferor by deed recorded with the [________________________________] County Register of Deeds at Liber [____], Page [____] (or Document No. [________________________________]).

TRANSFER-ON-DEATH DESIGNATION

Pursuant to MCL § 700.6501 et seq., I hereby designate this deed as a Transfer-on-Death Deed. This deed shall transfer my interest in the above-described real property to the designated Beneficiary(ies) effective upon my death, subject to all conveyances, encumbrances, and liens of record at the time of my death.

I understand and acknowledge that:

1. This deed has no effect until my death.
2. I retain full ownership and control of the property during my lifetime.
3. I may revoke this deed at any time before my death.
4. The beneficiary receives no interest in the property until my death.
5. This deed does not require delivery to or acceptance by the beneficiary.
6. This deed is nontestamentary.
7. The property transfers subject to all existing encumbrances at my death.

TRANSFEROR'S SIGNATURE

Signature: ________________________________________

Printed Name: [________________________________]

Date: [__/__/____]

ACKNOWLEDGMENT

STATE OF MICHIGAN
COUNTY OF [________________________________]

On this [____] day of [________________________________], [____], before me, the undersigned notary public, personally appeared [________________________________], known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument, and acknowledged that he/she/they executed the same voluntarily for the purposes therein contained.

Witness my hand and official seal.

Notary Public: ________________________________________
County of [________________________________], State of Michigan
My Commission Expires: [__/__/____]

[NOTARIAL SEAL]

DRAFTED BY:

[________________________________]
[________________________________] (Attorney Bar No. [________________________________])

3. REVOCATION OF TRANSFER-ON-DEATH DEED

A Michigan TOD deed may be revoked by any of the following methods:

Method 1: Instrument of Revocation

☐ Execute and acknowledge a written revocation instrument

☐ Record the revocation with the Register of Deeds in the county where the property is located

Method 2: Subsequent TOD Deed

☐ Execute a new TOD deed for the same property

☐ Record the new TOD deed (this revokes the prior TOD deed by inconsistency)

Method 3: Inter Vivos Transfer

☐ Transfer the property to another person during your lifetime by a recorded deed

4. RECORDING REQUIREMENTS

5. MULTIPLE BENEFICIARIES

• Multiple beneficiaries hold as tenants in common unless the deed specifies otherwise
• To create a joint tenancy with right of survivorship, the deed must expressly state this
• If a beneficiary predeceases the transferor, that share lapses unless an alternate beneficiary is designated
• Michigan's antilapse statute may apply in certain circumstances

6. EFFECT AT TRANSFEROR'S DEATH

• The property transfers to the designated beneficiary(ies) upon the transferor's death
• Transfer is subject to all liens, mortgages, and encumbrances existing at the time of death
• The beneficiary takes subject to any claims against the transferor's estate if other assets are insufficient
• The property is NOT subject to the transferor's will (the TOD deed controls)
• The beneficiary should record a certified copy of the death certificate with the Register of Deeds

7. LIENS, MORTGAGES, AND ENCUMBRANCES

The TOD deed does NOT eliminate any existing obligations on the property:

☐ Outstanding mortgages remain in effect and must be satisfied

☐ Property tax liens continue to encumber the property

☐ Judgment liens against the transferor survive the transfer

☐ Mechanic's liens and other statutory liens remain effective

☐ HOA assessments and covenants continue to apply

☐ Land contract obligations remain in effect

8. ENHANCED LIFE ESTATE (LADY BIRD) DEED ALTERNATIVE

Michigan also recognizes enhanced life estate deeds (commonly called "Lady Bird deeds") under MCL § 565.25, which provide an alternative to TOD deeds.

Comparison: TOD Deed vs. Lady Bird Deed

9. STATE-SPECIFIC NOTES

Property Tax Uncapping

• Michigan "uncaps" the taxable value of property upon a "transfer of ownership" (MCL § 211.27a)
• A TOD deed transfer at death may constitute a transfer of ownership that triggers uncapping
• Exception: Transfers to certain relatives (spouse, parent, child) may be exempt from uncapping
• File a Property Transfer Affidavit (Form L-4260) within 45 days of transfer

Michigan Estate Tax

• Michigan does NOT currently impose a state estate tax (the Michigan estate tax is linked to the state death tax credit, which was eliminated by federal law)
• Federal estate tax rules still apply

Medicaid / Michigan Medicaid

• Michigan Medicaid estate recovery may apply to property transferred by TOD deed after the transferor's death
• A TOD deed does NOT protect property from Medicaid estate recovery
• Lady Bird deeds may offer advantages for Medicaid planning
• Consult an elder law attorney for Medicaid planning

Homestead Exemption

• Michigan provides a Principal Residence Exemption (PRE) that exempts the property from certain school operating taxes (MCL § 211.7cc)
• A TOD deed should not affect the PRE during the transferor's lifetime
• The beneficiary must file a new PRE affidavit if the property becomes their principal residence

Title Insurance

• Title companies may require additional documentation before insuring title through a TOD deed transfer
• Consult with a title company regarding their requirements

10. SOURCES AND REFERENCES

• MCL §§ 700.6501–700.6515 (Michigan TOD Deed Act): legislature.mi.gov
• MCL § 565.25 (Enhanced Life Estate Deeds): legislature.mi.gov
• MCL § 211.27a (Transfer of Ownership / Uncapping): legislature.mi.gov
• MCL § 211.7cc (Principal Residence Exemption): legislature.mi.gov
• Michigan Property Transfer Affidavit (Form L-4260): michigan.gov

This template is provided for informational and educational purposes only. It does not constitute legal advice. Consult a licensed Michigan attorney before executing any estate planning document.

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