reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-4 - Part 4 Creation, Validity, Modification, and Termination of Trust (700.7401...700.7417) › Section 700.7407 - Evidence of Oral Trust.

700.7407 Evidence of oral trust.
Sec. 7407.
Except as required by a statute other than this article, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence.
History:
1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-4 - Part 4 Creation, Validity, Modification, and Termination of Trust (700.7401...700.7417) › Section 700.7408, 700.7409 - Repealed. 2009, Act 46, Eff. Apr. 1, 2010.

700.7408, 700.7409 Repealed. 2009, Act 46, Eff. Apr. 1, 2010.
History:
The repealed sections pertained to trustee authority regarding tax matters and payment provisions.
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-4 - Part 4 Creation, Validity, Modification, and Termination of Trust (700.7401...700.7417) › Section 700.7410 - Modification or Termination of Trust; Procedures for Approval or Disapproval.

700.7410 Modification or termination of trust; procedures for approval or disapproval.
Sec. 7410.
(1) In addition to the methods of termination prescribed by sections 7411 to 7414, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved, or the purposes of the trust have become impossible to achieve or are found by a court to be unlawful or contrary to public policy.
(2) A proceeding to confirm the termination of a trust under subsection (1) or to approve or disapprove a proposed modification or termination under sections 7411 to 7416 or trust combination or division under section 7417 may be commenced by a trustee or beneficiary. A proceeding to modify a charitable trust under section 7413 may be commenced by the persons with the power to enforce the terms of a charitable trust pursuant to section 7405.
History:
Add. 2004, Act 314, Eff. Sept. 1, 2004 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-4 - Part 4 Creation, Validity, Modification, and Termination of Trust (700.7401...700.7417) › Section 700.7412 - Modification or Termination of Trust; Unanticipated Circumstances or Inability to Administer Effectively.

700.7412 Modification or termination of trust; unanticipated circumstances or inability to administer effectively.
Sec. 7412.
(1) The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust's administration.
(2) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the settlor's stated purpose or, if there is no stated purpose, the settlor's probable intention.
(3) If a trust is terminated under this section, the trustee shall distribute the trust property as ordered by the court.
(4) Notice of any proceeding to terminate or modify a trust shall be given in the manner described in section 7411(3).
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-4 - Part 4 Creation, Validity, Modification, and Termination of Trust (700.7401...700.7417) › Section 700.7413 - Cy Pres.

700.7413 Cy pres.
Sec. 7413.
(1) Except as otherwise provided in subsections (2) or (3), if a particular charitable purpose becomes unlawful, impracticable, or impossible to achieve, no alternative taker is named or provided for, and the court finds the settlor had a general, rather than a specific, charitable intent, all of the following apply:
(a) The trust does not fail, in whole or in part.
(b) The trust property does not revert to the settlor or the settlor's successors in interest.
(c) The court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor's general charitable intent.
(2) If the terms of a charitable trust confer a power on the trustee, or another person designated in the trust or gift, to modify or terminate either the charitable trust, a charitable gift to the trust, or the charitable purpose of the trust or gift in favor of another charitable trust, gift, or purpose, the terms of the trust prevail over the power of the court to apply cy pres to modify or terminate the trust.
(3) A provision in the terms of a charitable trust that would result in distribution of the trust property to a noncharitable beneficiary prevails over the power of the court to apply cy pres to modify or terminate the trust only if, when the provision takes effect, either of the following applies:
(a) The trust property is to revert to the settlor and the settlor is still living.
(b) Less than 50 years have elapsed since the date of the trust's creation.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-4 - Part 4 Creation, Validity, Modification, and Termination of Trust (700.7401...700.7417) › Section 700.7414 - Termination or Modification of Noncharitable Trust; Section Inapplicable to Easement for Conservation or Preservation.

700.7414 Termination or modification of noncharitable trust; section inapplicable to easement for conservation or preservation.
Sec. 7414.
(1) After 63 days after notice to the qualified trust beneficiaries and, if the trust is a charitable trust, to the attorney general of this state, the trustee of a trust consisting of trust property having a total value less than $50,000.00 may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration. The $50,000.00 amount expressed in this section shall be adjusted each year as provided in section 1210.
(2) The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration.
(3) Upon termination of a noncharitable trust under this section, the trustee shall distribute the trust property in the manner provided for in the terms of the trust, if any, and otherwise to the current income beneficiaries or, if there are no current income beneficiaries, in the manner directed by the court. Upon termination of a charitable trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
(4) This section does not apply to an easement for conservation or preservation.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010 ;-- Am. 2010, Act 325, Eff. Apr. 1, 2010
Compiler's Notes:
Enacting section 1 of Act 325 of 2010 provides:"Enacting section 1. (1) Except as provided in subsection (2), this amendatory act takes effect April 1, 2010."(2) Section 3207 of the estates and protected individuals code, 1998 PA 386, MCL 700.3207, as amended by this amendatory act, takes effect on the date this amendatory act is enacted into law."
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-4 - Part 4 Creation, Validity, Modification, and Termination of Trust (700.7401...700.7417) › Section 700.7415 - Reformation to Correct Mistakes.

700.7415 Reformation to correct mistakes.
Sec. 7415.
The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence that both the settlor's intent and the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-4 - Part 4 Creation, Validity, Modification, and Termination of Trust (700.7401...700.7417) › Section 700.7416 - Modification to Achieve Settlor's Tax Objectives; Retroactive Effect.

700.7416 Modification to achieve settlor's tax objectives; retroactive effect.
Sec. 7416.
To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-4 - Part 4 Creation, Validity, Modification, and Termination of Trust (700.7401...700.7417) › Section 700.7417 - Division or Consolidation of Trusts.

700.7417 Division or consolidation of trusts.
Sec. 7417.
(1) After notice to the qualified trust beneficiaries and to the holders of powers of appointment, a trustee may divide trust property into 2 or more separate portions or trusts and allocate property between them if the trusts have substantially identical terms and conditions or if the result does not impair rights of any beneficiary or adversely affect achievement of the purposes of the trust.
(2) After notice to the qualified trust beneficiaries and to the holders of powers of appointment, a trustee may consolidate 2 or more trusts and administer them as 1 trust if the trusts have substantially identical terms and conditions or if the result does not impair rights of any beneficiary or adversely affect achievement of the purposes of the trust. If the rule against perpetuities speaks from different dates with reference to the trusts or if there are other variations in terms, consolidation may still take place, but the property of the trusts shall be maintained in separate accounts if necessary to recognize and give effect to the differences.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-5 - Part 5 Creditor's Claims; Spendthrift, Support, and Discretionary Trusts (700.7501...700.7511) › Section 700.7501 - Application; Purposes.

700.7501 Application; purposes.
Sec. 7501.
This part applies to a creditor's or transferee's claims with respect to spendthrift, support, and discretionary trusts.
History:
1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2000, Act 54, Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-5 - Part 5 Creditor's Claims; Spendthrift, Support, and Discretionary Trusts (700.7501...700.7511) › Section 700.7502 - Spendthrift Provision.

700.7502 Spendthrift provision.
Sec. 7502.
(1) A spendthrift provision is valid and enforceable.
(2) A term of a trust providing that the interest of a trust beneficiary is held subject to a "spendthrift trust," or words of similar import, restrains both voluntary and involuntary transfer of the trust beneficiary's interest.
(3) Except as provided in sections 7504, 7506, and 7507, the trust beneficiary's interest in a trust may not be transferred in violation of a valid spendthrift provision and trust property is not subject to enforcement of a judgment until distributed directly to the trust beneficiary.
(4) Notwithstanding the existence of a spendthrift provision in the terms of the trust, a trustee is not liable to the beneficiaries of the trust for making a distribution to which a trust beneficiary is otherwise entitled pursuant to the direction of the trust beneficiary.
History:
1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2005, Act 204, Imd. Eff. Nov. 10, 2005 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-5 - Part 5 Creditor's Claims; Spendthrift, Support, and Discretionary Trusts (700.7501...700.7511) › Section 700.7503 - Trust for Support.

700.7503 Trust for support.
Sec. 7503.
(1) The interest of a trust beneficiary that is subject to a support provision may not be transferred and the trust property is not subject to the enforcement of a judgment until income or principal, or both, is distributed directly to the trust beneficiary. After a distribution to a trust beneficiary whose interest is subject to a support provision, the income and principal distributed are subject to the enforcement of a judgment only to the extent that the income or principal, or both, is not necessary for the health, education, support, or maintenance of the trust beneficiary.
(2) The use or enjoyment of trust property by a trust beneficiary whose interest is subject to a support provision may not be transferred and is not subject to the enforcement of a judgment against the trust beneficiary.
(3) Subsections (1) and (2) do not apply under circumstances described in section 7504, 7506, or 7507.
History:
1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2000, Act 177, Imd. Eff. June 20, 2000 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-5 - Part 5 Creditor's Claims; Spendthrift, Support, and Discretionary Trusts (700.7501...700.7511) › Section 700.7504 - Spendthrift Provision or Support Provision; Exceptions; "Child" Defined.

700.7504 Spendthrift provision or support provision; exceptions; "child" defined.
Sec. 7504.
(1) The interest of a trust beneficiary that is subject to a spendthrift provision, a support provision, or both may be reached in satisfaction of an enforceable claim against the trust beneficiary by any of the following:
(a) A trust beneficiary's child or former spouse who has a judgment or court order against the trust beneficiary for support or maintenance.
(b) A judgment creditor who has provided services that enhance, preserve, or protect a trust beneficiary's interest in the trust.
(c) This state or the United States.
(2) The court shall order the trustee to satisfy all or part of a judgment described in subsection (1) only out of all or part of distributions of income or principal as they become due.
(3) Notwithstanding that the terms of the trust include a spendthrift provision, this section does not apply to the interest of a trust beneficiary that is subject to a discretionary trust provision.
(4) As used in this section, "child" includes any person for whom an order or judgment for child support has been entered in this or another state.
History:
1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-5 - Part 5 Creditor's Claims; Spendthrift, Support, and Discretionary Trusts (700.7501...700.7511) › Section 700.7505 - Discretionary Trust; Effect of Standard; Right of Transferee or Creditor.

700.7505 Discretionary trust; effect of standard; right of transferee or creditor.
Sec. 7505.
The transferee or creditor of the beneficiary of a discretionary trust provision does not have a right to any amount of trust income or principal that may be distributed only in the exercise of the trustee's discretion, and trust property is not subject to the enforcement of a judgment until income or principal, or both, is distributed directly to the trust beneficiary.
History:
1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-5 - Part 5 Creditor's Claims; Spendthrift, Support, and Discretionary Trusts (700.7501...700.7511) › Section 700.7506 - Creditor's Claim Against Settlor; "Settlor" Explained.

700.7506 Creditor's claim against settlor; "settlor" explained.
Sec. 7506.
(1) Whether or not the terms of a trust contain a spendthrift provision, the following rules apply:
(a) During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors.
(b) After the death of a settlor, and subject to the settlor's right to direct the source from which liabilities will be paid, the property of a trust that at the settlor's death was revocable by the settlor, either alone or in conjunction with another person, is subject to expenses, claims, and allowances as provided in section 7605.
(c) With respect to an irrevocable trust, a creditor or assignee of the settlor may reach no more than the lesser of the following:
(i) The claim of the creditor or assignee.
(ii) The maximum amount that can be distributed to or for the settlor's benefit exclusive of sums to pay the settlor's taxes during the settlor's lifetime.
(2) If a trust has more than 1 settlor, the amount a creditor or assignee of a particular settlor may reach under subsection (1)(c) shall not exceed the settlor's interest in the portion of the trust attributable to that settlor's contribution.
(3) A trust beneficiary is not considered a settlor merely because of a lapse, waiver, or release of a power of withdrawal over the trust property.
(4) An individual who creates a trust shall not be considered a settlor with regard to the individual's retained beneficial interest in the trust that follows the termination of the individual's spouse's prior beneficial interest in the trust if all of the following apply:
(a) The individual creates, or has created, the trust for the benefit of the individual's spouse.
(b) The trust is treated as qualified terminable interest property under section 2523(f) of the internal revenue code, 26 USC 2523.
(c) The individual retains a beneficial interest in the trust income, trust principal, or both, which beneficial interest follows the termination of the individual's spouse's prior beneficial interest in the trust.
History:
1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-5 - Part 5 Creditor's Claims; Spendthrift, Support, and Discretionary Trusts (700.7501...700.7511) › Section 700.7507 - Overdue Distribution; "Mandatory Distribution" Defined.

700.7507 Overdue distribution; "mandatory distribution" defined.
Sec. 7507.
(1) Whether or not a trust contains a spendthrift provision, a creditor or assignee of a trust beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the trust beneficiary within a reasonable time after the designated distribution date.
(2) As used in this section, "mandatory distribution" means a distribution of income or principal that the trustee is required to make to a trust beneficiary under the terms of the trust, including a distribution upon termination of the trust. Mandatory distribution does not include a distribution subject to the exercise of the trustee's discretion even if either of the following applies:
(a) The direction is expressed in the form of a standard of distribution.
(b) The terms of the trust authorizing a distribution use language of discretion and language of direction.
History:
1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2000, Act 54, Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-5 - Part 5 Creditor's Claims; Spendthrift, Support, and Discretionary Trusts (700.7501...700.7511) › Section 700.7508 - Personal Obligations of Trustee.

700.7508 Personal obligations of trustee.
Sec. 7508.
Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.
History:
1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2000, Act 177, Imd. Eff. June 20, 2000 ;-- Am. 2005, Act 204, Imd. Eff. Nov. 10, 2005 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-5 - Part 5 Creditor's Claims; Spendthrift, Support, and Discretionary Trusts (700.7501...700.7511) › Section 700.7509-700.7511 - Repealed. 2009, Act 46, Eff. Apr. 1, 2010.

700.7509-700.7511 Repealed. 2009, Act 46, Eff. Apr. 1, 2010.
Compiler's Notes:
The repealed sections pertained to secured claims, claims not due, contingent claims, liquidated claims, and counterclaims.
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-6 - Part 6 Revocable Trusts (700.7601...700.7615) › Section 700.7601 - Capacity of Settlor of Revocable Trust.

700.7601 Capacity of settlor of revocable trust.
Sec. 7601.
The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-6 - Part 6 Revocable Trusts (700.7601...700.7615) › Section 700.7603 - Powers of Settlor; Exceptions; Settlor as Incapacitated Individual; Powers of Withdrawal; Actions by Predecessor Trustee.

700.7603 Powers of settlor; exceptions; settlor as incapacitated individual; powers of withdrawal; actions by predecessor trustee.
Sec. 7603.
(1) Subject to subsection (2), while a trust is revocable, rights of the trust beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor. This subsection does not apply to either of the following:
(a) A trust created by the exercise of a power described in section 7820a.
(b) A trust created by the exercise of a power of appointment held by a trustee in a fiduciary capacity.
(2) If the trustee reasonably believes that the settlor of a revocable trust is an incapacitated individual, the trustee shall keep the settlor's designated agent or, if there is no designated agent or if the sole agent is a trustee, each beneficiary who, if the settlor were then deceased, would be a qualified trust beneficiary informed of the existence of the trust and reasonably informed of its administration.
(3) While a trust is not revocable and while a person has a currently exercisable power of withdrawal over the entire principal of the trust, the duties of a trustee are owed exclusively to the person.
(4) A person who succeeds to the position of trustee of a revocable trust upon the death, resignation, or incapacity of a trustee who was also the trust settlor is not liable for an action of the settlor while the settlor was serving as trustee.
(5) With respect to a predecessor trustee who was also the settlor, the successor trustee has no responsibility to investigate a transaction by the predecessor trustee, to review an account, to review an action of the predecessor trustee, or to take action for a breach of trust by the predecessor trustee.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010 ;-- Am. 2012, Act 483, Imd. Eff. Dec. 28, 2012
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-6 - Part 6 Revocable Trusts (700.7601...700.7615) › Section 700.7604 - Proceeding to Contest Validity of Revocable Trust; Limitation; Distribution of Property; Liability.

700.7604 Proceeding to contest validity of revocable trust; limitation; distribution of property; liability.
Sec. 7604.
(1) A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earlier of the following:
(a) Two years after the settlor's death.
(b) Six months after the trustee sent the person a notice informing the person of all of the following:
(i) The trust's existence.
(ii) The date of the trust instrument.
(iii) The date of any amendments known to the trustee.
(iv) A copy of relevant portions of the terms of the trust that describe or affect the person's interest in the trust, if any.
(v) The settlor's name.
(vi) The trustee's name and address.
(vii) The time allowed for commencing a proceeding.
(2) Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee is not subject to liability for doing so unless either of the following applies:
(a) The trustee knows of a pending judicial proceeding contesting the validity of the trust.
(b) A potential contestant has notified the trustee in writing of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within 63 days after the contestant sent the notification.
(3) A beneficiary of a trust that is determined to have been invalid is liable to return any distribution received.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-6 - Part 6 Revocable Trusts (700.7601...700.7615) › Section 700.7605 - Liability of Trust for Expenses, Claims, and Allowances.

700.7605 Liability of trust for expenses, claims, and allowances.
Sec. 7605.
(1) The property of a trust over which the settlor has the right without regard to the settlor's mental capacity, at his or her death, either alone or in conjunction with another person, to revoke the trust and revest principal in himself or herself is subject to all of the following, but only to the extent that the settlor's property subject to probate administration is insufficient to satisfy the following expenses, claims, and allowances:
(a) The administration expenses of the settlor's estate.
(b) An enforceable and timely presented claim of a creditor of the settlor, including a claim for the settlor's funeral and burial expenses.
(c) Homestead, family, and exempt property allowances.
(2) A trust established as part of, and all payments from, an employee annuity described in section 403 of the internal revenue code, 26 USC 403, an individual retirement account described in section 408 of the internal revenue code, 26 USC 408, a Keogh, or HR-10, plan, or a retirement or other plan that is qualified under section 401 of the internal revenue code, 26 USC 401, shall not be considered to be a trust described in subsection (1).
(3) This section does not impair a right that an individual has under a qualified domestic relations order as that term is defined in section 414(p) of the internal revenue code, 26 USC 414.
(4) For purposes of this section, property held or received by a trust to the extent that the property would not have been subject to a claim against the settlor's estate if it had been paid directly to a trust created under the settlor's will or other than to the settlor's estate, or property received from a trust other than a trust described in this section, shall not be considered trust property available for the payment of the administration expenses, a claim against the settlor's estate, or an allowance described in subsection (1).
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-6 - Part 6 Revocable Trusts (700.7601...700.7615) › Section 700.7606 - Payment of Expenses and Obligations of Settlor's Estate; Duty of Trustee.

700.7606 Payment of expenses and obligations of settlor's estate; duty of trustee.
Sec. 7606.
(1) A trustee of a trust described in section 7605(1) shall pay to the personal representative of the settlor's estate the amount that the personal representative certifies in writing to the trustee is required to pay the administration expenses of the settlor's estate; an enforceable and timely presented claim of a creditor of the settlor, including a claim for the settlor's funeral and burial expenses; and homestead, family, and exempt property allowances. The trustee may rely on the certificate of the personal representative without liability to a trust beneficiary or another party. If a personal representative is not appointed for the settlor's estate, the trustee shall pay directly to the creditor an enforceable and timely served claim of a creditor of the settlor, including a claim for the settlor's funeral and burial expenses. If a personal representative is not appointed for the settlor's estate within 4 months after the date of the publication of notice to creditors, a trust described in section 7605(1) is not liable for payment of homestead, family, or exempt property allowances. A payment made by a trustee is subject to this section, but the payment shall be made exclusively out of property, or the proceeds of property, that is includable in the settlor's gross estate for federal estate tax purposes, other than assets described in section 7605(2) to (4).
(2) Subject to section 7607, unless a settlor provides in his or her will or, in the absence of such a provision, designates in the trust the money or property passing under a trust to be used as described in section 7605(1), the administration expenses of the settlor's estate; an enforceable and timely filed claim of a creditor of the settlor, including a claim for the settlor's funeral and burial expenses; or homestead, family, and exempt property allowances, to be paid in accordance with subsection (1), shall be paid from the property of the trust in the following order:
(a) Property of the trust residue remaining after all distributions that are to be satisfied by reference to a specific property or type of property, fund, money, or statutory amount.
(b) Property that is not to be distributed out of specified or identified property or a specified or identified item of property.
(c) Property that is to be distributed out of specified or identified property or a specified or identified item of property.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-6 - Part 6 Revocable Trusts (700.7601...700.7615) › Section 700.7608 - Duty of Trustee to Give Notice.

700.7608 Duty of trustee to give notice.
Sec. 7608.
If there is no personal representative of the settlor's estate to whom letters of administration have been issued so that the publication and notice requirements of section 3801 have not been discharged, each trustee of a trust described in section 7605(1) shall publish and serve a notice to creditors in the same manner, with the same duties, and with the same protection for the trustee and the attorney for the trustee as described in section 3801 for a personal representative. The notice shall comply with applicable court rules and contain the name of the trust's deceased settlor; the trust's name or other designation, if any; the date the trust was established; the name and address of each trustee serving at the time of or as a result of the settlor's death; and the name and address of the trustee's attorney, if any. The notice shall state the date of publication.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-6 - Part 6 Revocable Trusts (700.7601...700.7615) › Section 700.7609 - Presentation of Claims Against Trust.

700.7609 Presentation of claims against trust.
Sec. 7609.
(1) Subject to section 7611, if notice to claimants is given by a trustee as provided in section 7608, a claimant shall present a claim against a trust described in section 7605(1) in either of the following ways:
(a) The claimant may mail or deliver to the trustee a written statement of the claim indicating its basis, the name and address of the claimant, and the amount claimed. The claim is considered presented on the trustee's receipt of the claim. If a claim is not yet due, the date when it will become due shall be stated. If the claim is contingent or unliquidated, the nature of the uncertainty shall be stated. If the claim is secured, the security shall be described. Failure to describe correctly the security, the nature of any uncertainty, and the due date of a claim not yet due does not invalidate a claim's presentation.
(b) The claimant may commence a proceeding to obtain payment of a claim against the trust in a court where the trustee is subject to jurisdiction. The commencement of the proceeding shall occur within the time limit for presenting the claim. Presentation of a claim is not required in regard to matters claimed in proceedings against the trust or settlor that were pending at the time of the settlor's death.
(2) If a personal representative is appointed for the settlor's estate, presentation of a claim against the settlor's estate shall be made in the manner described in section 3804, and such a presentation is sufficient to assert liability against a trust described in section 7605(1) without an additional presentation of the claim against the trustee.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-6 - Part 6 Revocable Trusts (700.7601...700.7615) › Section 700.7610 - Presentation of Claims to Assert Liability; Time Limitation; Exceptions.

700.7610 Presentation of claims to assert liability; time limitation; exceptions.
Sec. 7610.
(1) Subject to section 7611, if not barred earlier by another statute of limitations, a claim against the settlor of a trust described in section 7606(1) that arose at or before the settlor's death that a person seeks to recover from the trust is barred against the trust, each trustee of the trust, and a trust beneficiary, unless presented within 1 of the following times:
(a) If notice is given in compliance either with section 3801 or section 7608, within 4 months after the date of publication of notice to creditors.
(b) For a creditor known to the personal representative at the time of publication or during the 4 months following publication, or known to the trustee at or during such a time if publication occurred under section 7608, within 28 days after the subsequent sending of notice or 4 months after the date of publication of notice to creditors, whichever is later.
(c) If the notice requirements of either section 3801 or section 7608 are not met, within 3 years after the settlor's death.
(2) This section does not affect or prevent any of the following:
(a) A proceeding to enforce a mortgage, pledge, or other lien upon property held in the trust.
(b) A proceeding to establish the settlor's or the trustee's liability for which the settlor or the trustee is protected by liability insurance to the limits of the insurance protection only.
(c) Collection of compensation for services rendered and reimbursement of expenses advanced by the trustee or by an attorney, auditor, investment adviser, or other specialized agent or assistant for the trustee.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-6 - Part 6 Revocable Trusts (700.7601...700.7615) › Section 700.7612 - Payment of Claims by Trustee.

700.7612 Payment of claims by trustee.
Sec. 7612.
(1) Upon the expiration of 4 months after the date of the publication of the notice to creditors, the trustee shall proceed to pay the claims allowed against the trust in the order of priority prescribed in section 7607(2)(f) to (i), after making provision for costs and expenses of trust administration, for reasonable funeral and burial expenses, for each claim already presented that is not yet allowed or whose allowance is appealed, and for each unbarred claim that may yet be presented. A claimant whose claim is allowed, but not paid as provided in this section, may petition the court to secure an order directing the trustee to pay the claim to the extent that money of the trust is available for the payment.
(2) At any time, the trustee may pay a claim that is not barred, with or without formal presentation, but is individually liable to another claimant whose claim is allowed and who is injured by the payment if either of the following occurs:
(a) Payment is made before the expiration of the time limit stated in subsection (1) and the trustee fails to require the payee to give adequate security for the refund of any of the payment necessary to pay another claimant.
(b) Payment is made, due to the negligence or willful fault of the trustee, in a manner that deprives the injured claimant of priority.
(3) If a claim is allowed but the whereabouts of the claimant is unknown at the time the trustee attempts to pay the claim, upon petition by the trustee and after notice the court considers advisable, the court may disallow the claim. If the court disallows a claim under this subsection, the claim is barred.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-6 - Part 6 Revocable Trusts (700.7601...700.7615) › Section 700.7613 - Secured Claims; Payment; Basis.

700.7613 Secured claims; payment; basis.
Sec. 7613.
Payment of a secured claim shall be upon the basis of the amount allowed if the creditor surrenders the security. Otherwise, payment shall be upon the basis of 1 of the following:
(a) If the creditor exhausts the security before receiving payment, upon the claim amount allowed less the fair value of the security.
(b) If the creditor does not have the right to exhaust the security or does not do so, upon the claim amount allowed less the value of the security as determined by converting it into money according to the terms of the agreement under which the security is delivered to the creditor, or as determined by the creditor and trustee by agreement, arbitration, compromise, or litigation.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-6 - Part 6 Revocable Trusts (700.7601...700.7615) › Section 700.7614 - Claims Due at Future Time, Contingent Claim, or Unliquidated Claim.

700.7614 Claims due at future time, contingent claim, or unliquidated claim.
Sec. 7614.
A claim that will become due at a future time, a contingent claim, or an unliquidated claim is governed by the following:
(a) If a claim becomes due or certain before the distribution of the trust, and if the claim is allowed or established by a proceeding, the claim shall be paid in the same manner as presently due and absolute claims of the same class.
(b) For a claim not covered by subdivision (a), the trustee or, on petition of the trustee or the claimant in a proceeding for the purpose, the court may provide for payment as follows:
(i) If the claimant consents, the claimant may be paid the present or agreed value of the claim, taking any uncertainty into account.
(ii) Arrangement for future payment, or possible payment, on the happening of the contingency or on liquidation may be made by creating a trust, giving a mortgage, obtaining a bond or security from a distributee, or otherwise.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-6 - Part 6 Revocable Trusts (700.7601...700.7615) › Section 700.7615 - Counterclaims of Trustee.

700.7615 Counterclaims of trustee.
Sec. 7615.
In allowing a claim, the trustee may deduct a counterclaim that the trustee has against the claimant. In determining a claim against a trust, the court shall reduce the amount allowed by the amount of a counterclaim and, if the total counterclaims exceed the claim, render a judgment against the claimant in the amount of the excess. A counterclaim, liquidated or unliquidated, may arise from a transaction other than that upon which the claim is based. A counterclaim may give rise to relief exceeding in amount or different in kind from that sought in the claim.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-7 - Part 7 Office of Trustee (700.7701...700.7709) › Section 700.7701 - Acceptance or Rejection of Trusteeship.

700.7701 Acceptance or rejection of trusteeship.
Sec. 7701.
(1) Except as otherwise provided in subsection (3), a person designated as trustee accepts the trusteeship by doing either of the following:
(a) Substantially complying with a method of acceptance provided in the terms of the trust.
(b) If the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(2) A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have rejected the trusteeship.
(3) A person designated as trustee, without accepting the trusteeship, may do all of the following:
(a) Act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to a qualified trust beneficiary.
(b) Exercise all powers set forth under section 7818(1)(a).
(c) Inspect or investigate trust property to determine potential liability under other law or for any other purpose.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC
2023 Michigan Compiled Laws › Chapter 700 - Estates and Protected Individuals Code › Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206) › Article VII - Michigan Trust Code (700.7101...700.7913) › 386-1998-VII-7 - Part 7 Office of Trustee (700.7701...700.7709) › Section 700.7702 - Trustee's Bond.

700.7702 Trustee's bond.
Sec. 7702.
(1) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the trust beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement.
(2) The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. The court may modify or terminate a bond at any time.
(3) A financial institution qualified to do trust business in this state need not give bond, even if required by the terms of the trust.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC