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”