How Michigan law treats jointly owned bank accounts and property when someone dies without a will

Detailed Answer

When a Michigan resident dies without a valid will (intestate), what happens to assets depends on how each asset is titled and whether a legal right of survivorship exists. Below is a plain-language explanation of the common situations, followed by a short hypothetical that ties the pieces together.

1. Joint bank accounts

If a bank account is held jointly with an automatic right of survivorship (often called “joint tenancy with right of survivorship” or a joint account with survivorship language), the surviving joint owner generally becomes the sole owner immediately on the decedent’s death. The bank will usually require a certified copy of the death certificate and the surviving owner’s identification before releasing funds. These funds typically pass outside probate.

If the account was intended to be a convenience or is titled so the decedent’s share is a “tenancy in common” (or if the bank’s records show separate ownership percentages), the decedent’s share may form part of the probate estate and pass under Michigan’s intestacy rules to heirs.

2. Bank accounts with a Payable-on-Death (POD) or Transfer-on-Death (TOD) designation

Accounts or securities that name a beneficiary (POD/TOD) pass directly to the named beneficiary and avoid probate. The bank or brokerage will require the named beneficiary’s identification and a death certificate to transfer ownership.

3. Real estate and titled personal property

Real estate and titled vehicles depend on how title is held:

• Joint tenancy with right of survivorship / tenancy by the entirety: Ownership transfers automatically to the surviving owner by operation of law and typically avoids probate. Michigan recognizes tenancy by the entirety for married couples; those assets pass to the surviving spouse on death.
• Tenancy in common: Each owner owns a separate share. A deceased owner’s share does not automatically pass to surviving co-owners; it becomes part of the deceased’s probate estate and is distributed under intestacy rules.
• Property titled only in the decedent’s name: That property becomes part of the probate estate and is distributed under Michigan intestacy law.

4. Michigan intestacy rules (who inherits when there is no will)

When property is part of the probate estate, Michigan law determines heirs by degree of relationship. Surviving spouse and children are primary heirs; if none exist, more remote relatives may inherit. Michigan’s intestate succession rules are in the Estates and Protected Individuals Code (EPIC). For a statutory reference, see MCL 700.2103 at the Michigan Legislature: MCL 700.2103 (intestate successors). These rules fix who gets what share when there is no valid will.

5. Probate vs. non-probate transfer

Non-probate transfers (joint survivorship, POD/TOD, beneficiary designations, certain trusts) pass outside probate to the named surviving owners or beneficiaries. Assets titled only in the decedent’s name and without beneficiary designations generally require probate administration so a personal representative can distribute them according to Michigan law.

6. Practical steps banks and title companies commonly take

• Require an original or certified death certificate.
• Ask for documentation proving the surviving person’s identity and right to the funds (e.g., account records showing joint ownership with survivorship).
• If the bank questions the joint account’s survivorship character, it may freeze the account until a court or personal representative resolves the dispute.

Hypothetical example

Marla and Alex own a checking account titled “Marla Smith & Alex Smith, joint with right of survivorship.” Marla dies without a will. Because of the survivorship language, Alex goes to the bank with Marla’s death certificate. The bank moves the funds to Alex’s sole control without probate.

By contrast, Sam and Taylor own a vacation cabin as tenants in common, each with a 50% share. Sam dies without a will. Sam’s 50% interest is part of Sam’s probate estate and will transfer only through probate under Michigan’s intestacy statutes to Sam’s heirs (for example, a surviving spouse or children depending on the family situation).

When a dispute can arise

Family members sometimes disagree whether an account or piece of property was meant to pass automatically. Common dispute sources include ambiguous account records, contested signatures, or allegations the decedent intended to revoke survivorship. These disputes can lead to litigation or require a probate court to decide.

How to tell what applies to a specific asset

• Check the title or account agreement for words like “with right of survivorship,” “joint tenants,” “payable on death,” or a named beneficiary.
• Ask the bank or institution what documentation they need to complete a transfer.
• If property is untitled or title is unclear, consult an attorney to determine whether probate is required.

Helpful Hints

• Keep originals or certified copies of death certificates handy when dealing with banks and title companies.
• Collect account statements and title documents early. They show how each asset is titled.
• Understand that beneficiary designations and survivorship rights usually override a will. If a bank account names a POD beneficiary, that designation governs even if the decedent later signed a will leaving the account elsewhere.
• If you find an account that appears jointly held but the surviving person says it was only for convenience, get legal advice—courts sometimes decide those questions differently based on evidence of intent.
• If probate seems necessary, the probate court in the county where the decedent lived supervises distribution and appoints a personal representative. Michigan probate forms and court information are available through the Michigan Courts website: courts.michigan.gov.
• Consider speaking with an attorney experienced in Michigan probate and estate law early if the estate is large, there are unclear titles, or family disputes exist.

Where to look in Michigan law

Michigan’s intestacy and probate rules are part of the Estates and Protected Individuals Code (EPIC). A relevant statutory starting point for intestate succession is MCL 700.2103: https://www.legislature.mi.gov/mileg.aspx?page=getObject&objectName=mcl-700-2103. For probate procedure and personal representative appointment, see the probate provisions of EPIC on the Michigan Legislature site.

Disclaimer: This article is for general information only and is not legal advice. It explains common Michigan rules and processes but does not apply to every situation. For advice about a specific estate, asset title, or dispute, consult a licensed Michigan attorney.