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-7 - Part 7 Office of Trustee (700.7701...700.7709) › Section 700.7704 - Vacancy in Trusteeship; Manner of Filling; Priority; Appointment by Court of Additional Trustee or Fiduciary; Definitions.

700.7704 Vacancy in trusteeship; manner of filling; priority; appointment by court of additional trustee or fiduciary; definitions.
Sec. 7704.
(1) A vacancy in a trusteeship occurs if 1 or more of the following occur:
(a) A person designated as trustee rejects the trusteeship.
(b) A person designated as trustee cannot be identified or does not exist.
(c) A trustee resigns.
(d) A trustee is disqualified or removed.
(e) A trustee dies.
(f) A guardian or conservator is appointed for an individual serving as trustee.
(2) If 1 or more cotrustees remain in office, a vacancy in a trusteeship need not be filled. Though any separate trustee may comprise a cotrusteeship, the relation between respective separate trustees serving under a given separate trustees provision is not itself a cotrusteeship. A vacancy in a trusteeship must be filled if the vacancy leaves either of the following:
(a) A trust that is not subject to a separate trustees provision as of the time of the vacancy without any remaining trustee.
(b) Any of the several separate trusteeships governed by an operative separate trustees provision without any remaining trustee.
(3) If a vacancy in a trusteeship of a noncharitable trust is to be filled, the vacancy must be filled in the following order of priority:
(a) In the manner designated by the terms of the trust.
(b) By a person appointed by the court.
(4) If a vacancy in a trusteeship of a charitable trust is to be filled, the vacancy must be filled in the following order of priority:
(a) In the manner designated by the terms of the trust.
(b) By a person selected by the charitable organizations expressly designated to receive distributions under the terms of the trust if the attorney general concurs in the selection.
(c) By a person appointed by the court.
(5) Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee or special fiduciary upon the showing of good cause.
(6) As used in this section, "cotrusteeship", "separate trustee", "separate trustees provision", and "separate trusteeship" mean those terms as defined in section 7703b.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010 ;-- Am. 2018, Act 662, Eff. Mar. 29, 2019
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 700.7705 - Resignation of Trustee; Circumstances; Issuance of Orders and Conditions; Liability.

700.7705 Resignation of trustee; circumstances; issuance of orders and conditions; liability.
Sec. 7705.
(1) A trustee may resign in either of the following circumstances:
(a) Upon at least 28 days' notice to the qualified trust beneficiaries, the holders of powers of appointment, and all cotrustees.
(b) With the approval of the court.
(2) In approving a resignation, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.
(3) Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or omissions of the trustee is not discharged or affected by the trustee's resignation.
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 700.7706 - Removal of Trustee.

700.7706 Removal of trustee.
Sec. 7706.
(1) The settlor, a cotrustee, or a qualified trust beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative.
(2) The court may remove a trustee if 1 or more of the following occur:
(a) The trustee commits a serious breach of trust.
(b) Lack of cooperation among cotrustees substantially impairs the administration of the trust.
(c) Because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the purposes of the trust.
(d) There has been a substantial change of circumstances, the court finds that removal of the trustee best serves the interests of the trust beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available.
(3) Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, to the extent it is not inconsistent with a material purpose of the trust, the court may order any appropriate relief under section 7901(2) that is necessary to protect the trust property or the interests of the trust beneficiaries.
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 700.7707 - Delivery of Property by Former Trustee.

700.7707 Delivery of property by former trustee.
Sec. 7707.
(1) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
(2) A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property in the trustee's possession to the cotrustee, successor trustee, or other person entitled to it.
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 700.7708 - Compensation of Trustee.

700.7708 Compensation of trustee.
Sec. 7708.
(1) If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances.
(2) If the terms of a trust specify the trustee's compensation, the trustee is entitled to be compensated as specified, but the court may allow more or less compensation if either of the following apply:
(a) The duties of the trustee are substantially different from those contemplated when the trust was created.
(b) The compensation specified by the terms of the trust would be unreasonably low or high.
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 700.7709 - Reimbursement of Expenses; Advance of Money as Lien; Advances and Reimbursement Not as Self-Dealing or Breach of Fiduciary Duty.

700.7709 Reimbursement of expenses; advance of money as lien; advances and reimbursement not as self-dealing or breach of fiduciary duty.
Sec. 7709.
(1) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for both of the following:
(a) Expenses that were properly incurred in the administration of the trust.
(b) To the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.
(2) An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.
(3) Advances and reimbursement under this section are not considered self-dealing by the trustee and are not a breach of the trustee's fiduciary duty.
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-8 - Part 8 Duties and Powers of Trustee (700.7801...700.7821) › Section 700.7801 - Administration of Trust; Duties of Trustee.

700.7801 Administration of trust; duties of trustee.
Sec. 7801.
Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, expeditiously, in accordance with its terms and purposes, for the benefit of the trust beneficiaries, and in accordance with this article.
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-8 - Part 8 Duties and Powers of Trustee (700.7801...700.7821) › Section 700.7803 - Impartiality; Use of Standards of Michigan Prudent Investor Rule.

700.7803 Impartiality; use of standards of Michigan prudent investor rule.
Sec. 7803.
The trustee shall act as would a prudent person in dealing with the property of another, including following the standards of the Michigan prudent investor rule. If the trustee has special skills or is named trustee on the basis of representation of special skills or expertise, the trustee is under a duty to use those skills.
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-8 - Part 8 Duties and Powers of Trustee (700.7801...700.7821) › Section 700.7808 - Settlor's Power to Direct Contrary to Trust Terms.

700.7808 Settlor's power to direct contrary to trust terms.
Sec. 7808.
While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust.
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-8 - Part 8 Duties and Powers of Trustee (700.7801...700.7821) › Section 700.7809 - Repealed. 2018, Act 664, Eff. Mar. 29, 2019.

700.7809 Repealed. 2018, Act 664, Eff. Mar. 29, 2019.
Compiler's Notes:
The repealed section pertained to the exercise of powers by a trust protector.
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-8 - Part 8 Duties and Powers of Trustee (700.7801...700.7821) › Section 700.7810 - Control and Protection of Trust Property.

700.7810 Control and protection of trust property.
Sec. 7810.
A trustee shall take reasonable steps to take control of and protect the trust 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-8 - Part 8 Duties and Powers of Trustee (700.7801...700.7821) › Section 700.7811 - Recordkeeping and Identification of Trust Property.

700.7811 Recordkeeping and identification of trust property.
Sec. 7811.
(1) A trustee shall keep adequate records of the administration of the trust.
(2) A trustee shall keep trust property separate from the trustee's own property.
(3) Except as otherwise provided in subsection (4), to the extent that property is held by someone other than the trustee, the trustee shall cause the trust's interest in the trust's property to appear in records maintained by the party holding the trust property.
(4) A trustee may do any of the following:
(a) Invest as a whole the property of 2 or more separate trusts, provided the trustee maintains records clearly indicating the respective interests.
(b) Hold trust property in nominee form.
(c) If the trust is revocable by the settlor, cause the trust's interest in the trust's property to appear in records in the manner directed by the settlor.
(d) Not reflect the trust's interest in the trust's property when the nature of the property is such that it is not possible or practicable to do so.
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-8 - Part 8 Duties and Powers of Trustee (700.7801...700.7821) › Section 700.7812 - Enforcement and Defense of Claims.

700.7812 Enforcement and defense of claims.
Sec. 7812.
A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.
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-8 - Part 8 Duties and Powers of Trustee (700.7801...700.7821) › Section 700.7813 - Duty to Locate Trust Property and Compel Delivery; Retention of Reserve for Payment of Expenses; Improper Distribution or Payment From Trust; Wrongful Conversion.

700.7813 Duty to locate trust property and compel delivery; retention of reserve for payment of expenses; improper distribution or payment from trust; wrongful conversion.
Sec. 7813.
(1) A trustee shall take reasonable steps to locate trust property and to compel a former trustee or other person to deliver trust property to the trustee.
(2) A resigning trustee or a trustee being replaced by a successor may retain a reasonable reserve for the payment of debts, taxes, and expenses, including attorney fees and other expenses incidental to the allowance of the trustee's accounts.
(3) Unless the distribution or payment can no longer be questioned because of adjudication, estoppel, or other limitation, a distributee or claimant that receives property that is improperly distributed or paid from a trust shall return the property and any income and gain from the property since distribution, if the recipient has the property. If the recipient does not have the property, the recipient shall pay the value of the property as of the date of distribution or payment and any income and gain from the property since distribution.
(4) If a person embezzles or wrongfully converts trust property, or refuses, without colorable claim of right, to transfer possession of trust property to the current trustee upon demand, the person is liable in an action brought by the current trustee, or the beneficiary of the trust for the benefit of the trust, for double the value of any property embezzled, converted, or wrongfully withheld from the current 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-8 - Part 8 Duties and Powers of Trustee (700.7801...700.7821) › Section 700.7816 - General Powers of Trustee.

700.7816 General powers of trustee.
Sec. 7816.
(1) A trustee, without authorization by the court, may exercise all of the following:
(a) Powers conferred by the terms of the trust.
(b) Except as limited by the terms of the trust, all of the following:
(i) All powers over the trust property that an unmarried competent owner has over individually owned property.
(ii) Any other powers appropriate to achieve the proper investment, management, and distribution of the trust property.
(iii) Any other powers conferred by this article.
(2) The exercise of a power is subject to the fiduciary duties prescribed by this article.
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-8 - Part 8 Duties and Powers of Trustee (700.7801...700.7821) › Section 700.7819 - Tax Matters; Powers of Trustee.

700.7819 Tax matters; powers of trustee.
Sec. 7819.
(1) A trustee may do any of the following in connection with a tax matter:
(a) Make, revise, or revoke an available allocation, consent, or election affecting a tax that is appropriate in order to carry out the settlor's estate planning objectives and to reduce the overall burden of taxation, both in the present and in the future. This authority includes, but is not limited to, all of the following:
(i) Electing to take expenses as estate tax or income tax deductions.
(ii) Electing to allocate the exemption from the tax on generation skipping transfers among transfers subject to estate or gift tax.
(iii) Electing to have all or a portion of a transfer for a spouse's benefit qualify for the marital deduction.
(iv) Electing the date of death or an alternate valuation date for federal estate tax purposes.
(b) Exclude or include property from the gross estate for federal estate tax purposes.
(c) Value property for federal estate tax purposes.
(d) Join with the surviving spouse or the surviving spouse's personal representative in the execution and filing of a joint income tax return and consenting to a gift tax return filed by the surviving spouse or the surviving spouse's personal representative.
(2) A trustee's decision on a matter described in subsection (1)(a) binds all beneficiaries.
(3) After making a decision described in subsection (1)(a), a trustee may make compensating adjustments between principal and income in the manner provided by the uniform principal and income act, 2004 PA 159, MCL 555.501 to 555.1005.
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-8 - Part 8 Duties and Powers of Trustee (700.7801...700.7821) › Section 700.7820 - Payment Provisions; Facility.

700.7820 Payment provisions; facility.
Sec. 7820.
(1) A trustee may act under section 7817(ff) by paying money or other property to 1 or more of the following:
(a) The minor or incapacitated individual directly.
(b) A person or institution providing support, maintenance, education, or medical, surgical, hospital, or other institutional care for the minor or incapacitated individual in direct payment for those services.
(c) The legal or natural guardian of the minor or incapacitated individual.
(d) A person, whether or not appointed guardian by a court, who shall in fact have the care and custody of the minor or incapacitated individual.
(e) A custodian for the minor or incapacitated individual under a uniform gifts or transfers to minors act.
(2) A trustee also may manage an amount distributable to a trust beneficiary who is a minor or incapacitated individual as a separate fund on the trust beneficiary's behalf, subject to the trust beneficiary's continuing right to withdraw the distribution.
(3) If the trustee exercises due care in the selection of the person to whom a payment is made under this section, including a minor or incapacitated individual, the trustee does not have a duty to see to the payment's application. The person's receipt for the payment completely discharges 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-8 - Part 8 Duties and Powers of Trustee (700.7801...700.7821) › Section 700.7821 - Distribution Upon Termination.

700.7821 Distribution upon termination.
Sec. 7821.
(1) Upon termination or partial termination of a trust, the trustee may send to the trust beneficiaries a proposal for distribution. The right of any trust beneficiary to object to the proposed distribution terminates if the trust beneficiary does not notify the trustee of an objection within 28 days after the proposal was sent, but only if the proposal informed the trust beneficiary of the right to object and of the time allowed for objection.
(2) Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, taxes, and expenses, including attorney fees and other expenses incidental to the allowance of the trustee's accounts.
(3) A release by a trust beneficiary of a trustee from liability for breach of trust is invalid to the extent either of the following applies:
(a) The release was induced by improper conduct of the trustee.
(b) The trust beneficiary, at the time of the release, did not know of the material facts relating to the breach.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7901 - Remedies for Breach of Trust.

700.7901 Remedies for breach of trust.
Sec. 7901.
(1) A violation by a trustee of a duty the trustee owes to a trust beneficiary is a breach of trust.
(2) To remedy a breach of trust that has occurred or may occur, the court may do any of the following:
(a) Compel the trustee to perform the trustee's duties.
(b) Enjoin the trustee from committing a breach of trust.
(c) Compel the trustee to redress a breach of trust by paying money, restoring property, or other means.
(d) Order a trustee to account.
(e) Appoint a special fiduciary to take possession of the trust property and administer the trust.
(f) Suspend the trustee.
(g) Remove the trustee as provided in section 7706.
(h) Reduce or deny compensation to the trustee.
(i) Subject to section 7912, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds.
(j) Order any other appropriate relief.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7902 - Breach of Trust; Liability; Damages.

700.7902 Breach of trust; liability; damages.
Sec. 7902.
A trustee who commits a breach of trust is liable to the trust beneficiaries affected for whichever of the following is larger:
(a) The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred.
(b) The profit the trustee made by reason of the breach.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7903 - Damages in Absence of Breach.

700.7903 Damages in absence of breach.
Sec. 7903.
(1) A trustee is accountable to an affected trust beneficiary for any profit made by the trustee arising from the administration of the trust, even absent a breach of trust.
(2) Absent a breach of trust, a trustee is not liable to a trust beneficiary for a loss or depreciation in the value of trust property, for failure to generate income, or for not having made a profit.
(3) This section does not do either of the following:
(a) Limit a trustee's right to compensation under section 7708 or payments allowed under section 7802(5).
(b) Make a trustee accountable to an affected beneficiary in connection with a matter to which section 4405 of the banking code of 1999, 1999 PA 276, MCL 487.14405, applies and the requirements of that section have been satisfied.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7904 - Attorney Fees and Costs; Receipt of Expenses and Disbursements; Reduction or Denial of Claim With Respect to Breach of Trust.

700.7904 Attorney fees and costs; receipt of expenses and disbursements; reduction or denial of claim with respect to breach of trust.
Sec. 7904.
(1) In a proceeding involving the administration of a trust, the court, as justice and equity require, may award costs and expenses, including reasonable attorney fees, to any party who enhances, preserves, or protects trust property, to be paid from the trust that is the subject of the proceeding.
(2) Subject to subsection (3), if a trustee participates in a civil action or proceeding in good faith, whether successful or not, the trustee is entitled to receive from trust property all expenses and disbursements including reasonable attorney fees that the trustee incurs in connection with its participation.
(3) A court may reduce or deny a trustee's claim for compensation, expenses, or disbursements with respect to a breach of trust.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7905 - Commencement of Proceedings; Limitations.

700.7905 Commencement of proceedings; limitations.
Sec. 7905.
(1) The following limitations on commencing proceedings apply in addition to other limitations provided by law:
(a) A trust beneficiary shall not commence a proceeding against a trustee for breach of trust more than 1 year after the date the trust beneficiary or a representative of the trust beneficiary was sent a report that adequately disclosed the existence of a potential claim for breach of trust and informed the trust beneficiary of the time allowed for commencing a proceeding.
(b) A trust beneficiary who has waived the right to receive reports pursuant to section 7814(5) shall not commence a proceeding for a breach of trust more than 1 year after the end of the calendar year in which the alleged breach occurred.
(2) A report adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the trust beneficiary or representative knows of the potential claim or should have inquired into the potential claim's existence.
(3) If subsection (1) does not apply, a judicial proceeding by a trust beneficiary against a trustee for breach of trust shall be commenced within 5 years after the first of the following to occur:
(a) The removal, resignation, or death of the trustee.
(b) The termination of the trust beneficiary's interest in the trust.
(c) The termination of the trust.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7906 - Reliance on Trust Instrument.

700.7906 Reliance on trust instrument.
Sec. 7906.
A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a trust beneficiary for a breach of trust to the extent the breach resulted from the reliance.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7907 - Event Affecting Administration or Distribution.

700.7907 Event affecting administration or distribution.
Sec. 7907.
If the happening of an event, including, but not limited to, marriage, divorce, performance of educational requirements, attainment of a specific age, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee's lack of knowledge or lack of notice.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7908 - Exculpation of Trustee.

700.7908 Exculpation of trustee.
Sec. 7908.
(1) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that either of the following applies:
(a) The term relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the trust beneficiaries.
(b) The term was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.
(2) The terms of a trust relieving a trustee of liability for breach of trust for the acquisition or retention of a particular asset or asset class or failure to diversify investments are enforceable.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7909 - Beneficiary's Consent, Release, or Ratification of Transaction.

700.7909 Beneficiary's consent, release, or ratification of transaction.
Sec. 7909.
A trustee is not liable to a trust beneficiary for breach of trust if the trust beneficiary consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless either of the following applies:
(a) The consent, release, or ratification of the trust beneficiary was induced by improper conduct of the trustee.
(b) At the time of the consent, release, or ratification, the trust beneficiary did not know of 1 or more of the material facts relating to the breach.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7910 - Personal Liability of Trustee; Limitation.

700.7910 Personal liability of trustee; limitation.
Sec. 7910.
(1) Unless otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administration of the trust estate unless the trustee fails to reveal the trustee's representative capacity.
(2) A trustee is personally liable for an obligation arising from ownership or control of the trust estate property or for a tort committed in the course of administration of the trust estate only if the trustee is personally at fault.
(3) A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity, on an obligation arising from ownership or control of the trust estate, or on a tort committed in the course of trust administration may be asserted against the trust estate by proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable for the claim.
(4) The question of liability as between the trust estate and the trustee individually may be determined in a proceeding for accounting, surcharge, or indemnification or in another appropriate proceeding.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7911 - Interest as General Partner.

700.7911 Interest as general partner.
Sec. 7911.
(1) Except as otherwise provided in subsection (3), a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract or in a statement previously filed pursuant to the Michigan revised uniform limited partnership act, 1982 PA 213, MCL 449.1101 to 449.2108, or was known by the other party to the contract.
(2) Except as otherwise provided in subsection (3), a trustee who holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest unless the trustee is personally at fault.
(3) The immunity provided by this section does not apply with respect to a general partnership interest held in any capacity other than as trustee.
(4) If the trustee of a revocable trust holds an interest as a general partner, the settlor is personally liable for contracts and other obligations of the partnership as if the settlor were a general partner.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7912 - Protection of Person Dealing With Trustee.

700.7912 Protection of person dealing with trustee.
Sec. 7912.
(1) A person other than a trust beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly exercised the power.
(2) A person other than a trust beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of the exercise of the powers.
(3) A person who in good faith delivers assets to a trustee need not ensure the proper application of the assets.
(4) A person other than a trust beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.
(5) Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.
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-9 - Part 9 Liability of Trustees and Rights of Persons Dealing With Trustee (700.7901...700.7913) › Section 700.7913 - Certificate of Trust.

700.7913 Certificate of trust.
Sec. 7913.
(1) Instead of furnishing a copy of the trust instrument to a person other than a trust beneficiary, the trustee may furnish to the person a certificate of trust that must include all of the following information:
(a) The name of the trust, the date of the trust, and the date of each operative trust instrument.
(b) The name and address of each current trustee.
(c) The powers of the trustee relating to the purposes for which the certificate of trust is being offered.
(d) The revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust.
(e) The authority of cotrustees to sign on behalf of the trust or otherwise authenticate on behalf of the trust and whether all or less than all of the cotrustees are required to exercise powers of the trustee.
(2) A certificate of trust may be signed or otherwise authenticated by the settlor, any trustee, or an attorney for the settlor or trustee. The certificate must be in the form of an affidavit.
(3) A certificate of trust must state that the trust has not been revoked, modified, or amended in any manner that would cause the representations included in the certificate of trust to be incorrect.
(4) A certificate of trust need not include the dispositive terms of the trust instrument.
(5) A recipient of a certificate of trust may require the trustee to furnish copies of those excerpts from each trust instrument that designate the trustee and confer on the trustee the power to act in the pending transaction.
(6) A person that acts in reliance on a certificate of trust without knowledge that the representations included in the certificate of trust are incorrect is not liable to any person for so acting and may assume without inquiry the existence of the trust and other facts included in the certificate of trust.
(7) A person that in good faith enters into a transaction in reliance on a certificate of trust may enforce the transaction against the trust property as if the representations included in the certificate of trust were correct.
(8) A person that makes a demand for the trust instrument in addition to a certificate of trust or excerpts of the trust instrument is liable for damages, costs, expenses, and legal fees if the court determines that the person that made the demand did not act pursuant to a legal requirement to demand the trust instrument.
(9) This section does not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding that concerns the trust.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010 ;-- Am. 2018, Act 491, Imd. Eff. Dec. 27, 2018
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 VIII - Miscellaneous Provisions (700.8101...700.8206) › 386-1998-VIII-1 - Part 1 Effective Date and Repealer (700.8101...700.8102) › Section 700.8101 - Effective Date; Applicable Provisions.

700.8101 Effective date; applicable provisions.
Sec. 8101.
(1) This act takes effect April 1, 2000.
(2) Except as provided elsewhere in this act, on this act's effective date, all of the following apply:
(a) The act applies to a governing instrument executed by a decedent dying after that date.
(b) The act applies to a proceeding in court pending on that date or commenced after that date regardless of the time of the decedent's death except to the extent that in the opinion of the court the former procedure should be made applicable in a particular case in the interest of justice or because of the infeasibility of applying this act's procedure.
(c) A fiduciary, including a person administering the estate of a minor or incompetent, holding an appointment on that date continues to hold the appointment, but has only the powers conferred by this act and is subject to the duties imposed with respect to an event occurring or action taken after that date.
(d) This act does not impair an accrued right or an action taken before that date in a proceeding. If a right is acquired, extinguished, or barred upon the expiration of a prescribed period of time that commences to run by the provision of a statute before this act's effective date, the provision remains in force with respect to that right.
(e) A rule of construction or presumption provided in this act applies to a governing instrument executed before that date unless there is a clear indication of a contrary intent.
History:
1998, Act 386, Eff. Apr. 1, 2000
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 VIII - Miscellaneous Provisions (700.8101...700.8206) › 386-1998-VIII-1 - Part 1 Effective Date and Repealer (700.8101...700.8102) › Section 700.8102 - Repeal of Certain Acts.

700.8102 Repeal of certain acts.
Sec. 8102.
The following acts and parts of acts are repealed:
(a) Disclaimer of property interests act, 1996 PA 131, MCL 554.871 to 554.890.
(b) Uniform testamentary additions to trusts act, 1962 PA 83, MCL 555.461 to 555.464.
(c) Revised probate code, 1978 PA 642, MCL 700.1 to 700.993.
(d) Uniform simultaneous death act, 1941 PA 73, MCL 720.101 to 720.108.
(e) 1996 PA 433, MCL 451.471 to 451.481.
History:
1998, Act 386, Eff. Apr. 1, 2000
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 VIII - Miscellaneous Provisions (700.8101...700.8206) › 386-1998-VIII-2 - Part 2 Michigan Trust Code Miscellaneous Provisions; Effective Date (700.8201...700.8206) › Section 700.8201 - Construction of Article Vii.

700.8201 Construction of article VII.
Sec. 8201.
(1) Article VII shall be construed and applied to promote its underlying purposes and policies.
(2) The following are the underlying purposes and policies of article VII:
(a) To make more comprehensive and to clarify the law governing trusts in this state.
(b) To permit the continued expansion and development of trust practices through custom, usage, and agreement of the parties.
(c) To foster certainty in the law so that settlors of trusts will have confidence that their instructions will be carried out as expressed in the terms of the trust.
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 VIII - Miscellaneous Provisions (700.8101...700.8206) › 386-1998-VIII-2 - Part 2 Michigan Trust Code Miscellaneous Provisions; Effective Date (700.8201...700.8206) › Section 700.8202 - Electronic Records and Signatures.

700.8202 Electronic records and signatures.
Sec. 8202.
The provisions of article VII governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with the use of electronic records or signatures, conform to the requirements of section 102 of the electronic signatures in global and national commerce act, 15 USC 7002, and supersede, modify, and limit the requirements of the electronic signatures in global and national commerce act, 15 USC 7001 to 7031.
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 VIII - Miscellaneous Provisions (700.8101...700.8206) › 386-1998-VIII-2 - Part 2 Michigan Trust Code Miscellaneous Provisions; Effective Date (700.8201...700.8206) › Section 700.8204 - Effective Date.

700.8204 Effective date.
Sec. 8204.
The amendments and additions to article VII enacted by the amendatory act that added this section take effect on April 1, 2010.
History:
Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name:
EPIC