Michigan Trust Code signed into law
June 24, 2009
Just this past week, the Michigan Trust Code was signed into law. It is officially Public Act 46 of 2009 (2009 PA 46). The Code will replace the current Article 7 of Michigan’s Estates and Protected Individuals Code and will become effective April 1, 2010. Among other things, it does the following*:
- the capacity required to create, amend, or revoke a revocable trust, or to direct the actions of its trustee, are the same as that required to make a will
- allows a settlor to revoke or amend a trust unless the terms of the trust provide that it is irrevocable
- provides that certain rules of construction that apply to the interpretation and disposition of property by will also apply to trust property
- provides for representation of beneficiaries by fiduciaries and others in such matters as the receipt of notice and consent
- specifies requirements for the creation of a trust
- provides that a trust may be created only to the extent its purposes were lawful, not contrary to public policy, and possible to achieve
- allows the settlor, a named beneficiary, or the Attorney General, among others, to maintain a proceeding to enforce a charitable trust
- provides that a trust is void to the extent its creation was induced by fraud, duress, or undue influence
- provides for the modification and termination of trusts and allows the termination of uneconomic trusts
- indicates how a trustee accepts a trusteeship
- provides for co-trustees, the appointment of a successor trustee if a vacancy in a trusteeship occurs, and circumstances in which a trustee may resign, and
- requires a trustee to administer the trust solely in the interests of the trust beneficiaries
*Summary of certain changes as stated in “ICLE’s This Week in Michigan Law – June 23, 2009″
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