What Happens to a Home When the Owner Passes Away? 

A Guide for Families in Oakland & Macomb Counties 

By Joseph White of Century 21 Professionals 

When a homeowner passes away, families often find themselves facing tough decisions at an already emotional time. In Oakland and Macomb counties, the process can feel overwhelming if you’re not familiar with Michigan’s rules on probate, deeds, and inheritance. 

This guide breaks down the most common ways a home can transfer after death—so you know what to expect and how to plan ahead. 

 

1. The Property Goes Through Probate (Very Common in Michigan)

If the home isn’t set up to transfer automatically, Michigan requires it to pass through probate court.
This is where a judge oversees: 

• validating a will (if there is one), 

• settling debts, and 

• determining who inherits the property. 

Probate can take several months, sometimes longer, especially if there are disputes or debts. 

 

2. Automatic Transfer to a Surviving Co-Owner

Many couples in Oakland and Macomb counties hold property as joint tenants with rights of survivorship or tenants by the entirety.
In these cases, the surviving spouse or co-owner becomes the sole owner immediately—no probate required. 

This type of deed is very common with married homeowners in Michigan. 

 

3. Transfer via Lady Bird Deed (Extremely Popular in Michigan)

Michigan is one of the states that allows an Enhanced Life Estate Deed, better known as a Lady Bird Deed. 

This deed lets the owner: 

• keep full control while living, 

• avoid probate entirely, 

• and automatically transfer the home to the named beneficiary at death. 

Oakland and Macomb residents use Lady Bird Deeds often because they’re simple, cost-effective, and flexible. 

 

4. Distribution According to a Will

If there’s a will, the executor follows its instructions. The home may: 

• transfer to one or more heirs, 

• be sold by the estate, or 

• be used to settle debts. 

Even with a will, probate is still required in Michigan unless a Lady Bird Deed, trust, or survivorship clause is in place. 

 

5. Michigan’s Intestate Laws Apply (If There’s No Will)

When there’s no will, Michigan’s intestate succession laws determine who inherits the home.
Generally: 

• the spouse and children have priority, 

• followed by parents and siblings if no spouse or kids exist. 

 

6. The Estate Sells the Property

The personal representative (executor) may choose to sell the home to: 

• pay off debts, 

• simplify the estate, or 

• distribute proceeds among multiple heirs. 

Probate sales are common throughout Macomb and Oakland—especially when several family members are involved. 

 

7. The Home Transfers Through a Living Trust

If the homeowner placed the property into a revocable living trust, the successor trustee handles everything without probate.
This is a smooth, private option many southeast Michigan families use for estate planning. 

Homes in irrevocable trusts also follow the trust rules and stay titled in the trust. 

 

8. Heirs Take Over the Mortgage or Refinance

Michigan heirs are allowed to keep paying an existing mortgage, and lenders cannot demand immediate payoff when a family member inherits the property.
Heirs can either: 

• continue the current loan, or 

• refinance into a new mortgage if they want full ownership. 

 

9. Foreclosure (If Payments Stop)

If no one keeps up the mortgage or taxes, the lender can eventually foreclose.
This is more common with properties that are inherited by multiple heirs who aren’t sure what to do with the home. 

 

10. The Home Becomes a Rental

Some families choose to turn the home into a rental property—long-term or short-term—especially in rental-friendly areas like: 

• Ferndale 

• Royal Oak 

• Sterling Heights 

• Warren 

• Madison Heights 

 

11. Multiple Heirs Become Co-Owners

Children or other heirs may inherit the home together.
From there, they can: 

• hold it jointly, 

• sell it, or 

• buy out each other’s shares. 

This situation often requires good communication and sometimes legal guidance. 

 

12. Life Estate Arrangements Take Effect

If a life estate was set up, someone—usually a spouse or parent—can continue living in the home for life.
After that, the remainder beneficiary becomes the full owner. 

 

Final Thoughts from Century 21 Professionals 

Navigating what happens to a home after a loved one passes is never simple, but you don’t have to go through it alone. Understanding Michigan’s specific options—especially probate, trust, and Lady Bird Deeds—can help families make confident decisions. 

If you’re in Oakland or Macomb County and need guidance on selling, transferring, or preparing a property for the market, our team at Century 21 Professionals is here to help walk you through the process step-by-step. 

Disclaimer:
The information provided is for general educational purposes only and is not intended as legal, tax, or financial advice. Laws and procedures related to real estate, probate, and estate planning can vary based on individual circumstances and may change over time. For advice specific to your situation, you should consult a qualified attorney, tax professional, or estate planning advisor. Century 21 Professionals and its agents do not provide legal or tax advice.