In Michigan, a trust does not need to be recorded with any county office to be valid. Recording only comes into play when the trust holds real estate, and even then you are not required to record the trust itself. What you typically record is the deed transferring property into or out of the trust, and, as a practical matter, a short certificate of trust filed as a separate document so the chain of title reflects the trustee’s authority.
The bigger question for most Michigan property owners isn’t whether to record. It’s what happens to property taxes and the mortgage when a home moves into a trust. Those consequences matter far more than the paperwork at the register of deeds.
What You Actually File: Certificate of Trust or Full Trust
Michigan recognizes two documents that can accompany a real estate transaction involving a trust. The full trust instrument contains everything: beneficiaries, distribution terms, amendment rules, successor trustees, asset lists. A certificate of trust is the short-form alternative built for exactly this situation.
Under MCL 700.7913, a certificate of trust must include the trust’s name and date, the current trustee’s name and address, the trustee’s powers relevant to the transaction, whether the trust is revocable or irrevocable and who can revoke it, and whether co-trustees must all sign or just some.1Michigan Legislature. Michigan Code Act 386 of 1998 – Section 700.7913 Certificate of Trust It must be signed as an affidavit and state that nothing has changed to make its contents inaccurate.
The statute explicitly says the certificate does not need to contain the “dispositive terms” of the trust, meaning the provisions about who gets what and when.1Michigan Legislature. Michigan Code Act 386 of 1998 – Section 700.7913 Certificate of Trust That’s the whole point. A title company or buyer confirms the trustee has authority to sell or refinance without learning anything about beneficiaries or assets.
The certificate also has teeth. Anyone who demands to see the full trust beyond the certificate risks liability for damages, costs, and attorney fees if a court later finds no legal reason for the demand.1Michigan Legislature. Michigan Code Act 386 of 1998 – Section 700.7913 Certificate of Trust Third parties can request excerpts showing the trustee’s designation and specific powers relevant to the deal, but not the whole document.
How Recording Works Under Act 133
Act 133 of 1991 says a deed or other instrument affecting real property executed under a trust “may be accompanied by” either a copy of the trust instrument or a certificate of trust that includes the property’s legal description.2Michigan Legislature. Michigan Compiled Laws – Section 565.431 “May” is doing real work in that sentence. You choose whether to attach anything.
The catch: once trust documentation does accompany the deed, it must be recorded as a separate filing.3Michigan Legislature. Michigan Compiled Laws Act 133 of 1991 – Recording Trust Instrument or Certificate of Trust You cannot staple a certificate of trust to a deed and file them as one document. They are two recordings.
Most people, and most title companies, will record the certificate. Without something in the public record showing the trustee had authority to sign the deed, a later buyer or lender may question the transaction. A recorded certificate protects everyone downstream. Anyone who relies on it in good faith gets the same protection as a good-faith purchaser under Michigan’s recording act, and does not need to dig further unless an amendment or revocation of the trust has been recorded in the same office.3Michigan Legislature. Michigan Compiled Laws Act 133 of 1991 – Recording Trust Instrument or Certificate of Trust
Formatting rules and fees vary by county. Confirm with your local register of deeds before filing.
The Property Tax Issue You Cannot Ignore
Michigan caps annual increases in taxable value at the rate of inflation or 5%, whichever is lower, under Proposal A. When property changes hands, the taxable value “uncaps” and resets to full state equalized value. For a home held for many years while market values climbed, that reset can be brutal.
Transferring property to a trust counts as a transfer of ownership under MCL 211.27a, which triggers uncapping unless an exemption applies. The one that matters most for estate planning: a transfer to a trust does not uncap if the person transferring the property (or their spouse) is the sole present beneficiary of the trust.4Michigan Legislature. Michigan Code – Section 211.27a Transfer of Ownership Transferring your home to your own revocable living trust, where you remain the beneficiary during your lifetime, does not uncap your taxes.
A second exemption covers residential property transferred to a trust where the sole present beneficiaries are close family of the settlor or the settlor’s spouse: parent, sibling, child, adopted child, or grandchild. The property must not be used commercially after the transfer.4Michigan Legislature. Michigan Code – Section 211.27a Transfer of Ownership If the Treasury or a local assessor requests proof that beneficiaries qualify, they have 30 days to respond or face a $200 fine.
Trouble shows up with trusts that name beneficiaries outside those categories, or trusts where the settlor is not a present beneficiary. An irrevocable trust naming the settlor’s children as present beneficiaries may qualify for the family exemption if it holds residential property, but not under the standard settlor-as-beneficiary rule. Getting this wrong produces a tax bill that dwarfs anything you’ll spend on recording or legal fees.
What About the Mortgage?
Transferring a mortgaged property into a trust could, in theory, trigger the due-on-sale clause and let the lender demand full repayment. Federal law blocks that in most cases. Under the Garn-St. Germain Act, a lender cannot accelerate the loan when property moves into a trust, so long as the borrower remains a beneficiary and does not give up the right to occupy the property.5Office of the Law Revision Counsel. 12 U.S. Code 1701j-3 – Preemption of Due-on-Sale Prohibitions
For a standard revocable living trust where you transfer your home, stay on as trustee and beneficiary, and keep living there, this protection applies cleanly. Irrevocable trusts are different. If you give up beneficiary status or the right to live in the property, the federal protection may not apply. Some estate planners use occupancy agreements between the settlor and trustee to preserve it, but that requires careful drafting.
The Privacy Trade-Off
Anything filed with the register of deeds becomes public. This is why the choice between certificate and full trust matters in practice. A recorded certificate reveals that a trust exists, names the trustee, and lists the powers relevant to the specific transaction. It does not reveal beneficiaries, assets, or distribution terms. A recorded full trust exposes everything.
Michigan law favors the certificate for third-party transactions, and the penalty for unreasonable demands to see the full trust backs that up.1Michigan Legislature. Michigan Code Act 386 of 1998 – Section 700.7913 Certificate of Trust There are edge cases where recording the full trust makes sense, usually when provisions are unusually complex and future disputes are likely, but they are rare. For nearly all real estate transactions involving a trust, the certificate does the job while keeping private information private.
Property in Other States
If your Michigan trust holds property in another state, that state’s recording rules govern the property located there. Michigan’s Act 133 reaches only property within Michigan. Some states require more detailed trust documentation for real property transactions than Michigan does; others use similar certificate-of-trust frameworks. Confirm each state’s requirements with local counsel or the relevant county recorder before executing a transfer.