The author discusses the brand-new Michigan Trust Code.
Reliable April 1, 2010, Michigan has a new law governing trusts set up here in our state. The trust law was revamped to resolve spaces in present law, create uniformity in between our trust law and that of other states, and make it simpler for Michigan banks to designate a regional trustee to supervise trusts established here.
Trust law is complicated, a lot so that attorneys who focus on this area are taking half-day training courses to make sure they totally understand all the modifications in the new Michigan Trust Code!
Here is a layperson’s summary of a few of the most important differences in the brand-new code:
Conforms with the Uniform Trust Code. The UTC was developed to help standardize trust law throughout states, and Michigan’s brand-new law incorporates numerous UTC provisions. More than 20 states now base their trust law on the UTC, and legislation is pending in numerous other states to make their trust laws conform to the UTC. Utilizing the UTC as the basis for our trust law makes it much easier for trustees in other states to be appointed to oversee Michigan trusts while keeping those trusts based here in Michigan and maintaining related administrative jobs.
Fills in legal gaps. Formerly, our trust law was riddled with incomplete and old-fashioned arrangements. Some 34 various sections were included to complete these gaps and improve our trust law. Amongst the issues clarified are the law relating to accepting or decreasing a trusteeship, filling a trustee vacancy, the resignation of trustees, and the removal of trustees. The new law outlines situations under which a small or uneconomic trust can be ended, provides a time limit for challenging a revocable trust, and expands the permitted usages of certificates of trust.
Sticks with Michigan law. Where developed Michigan law and the UTC dispute, for the many part the new trust law follows longstanding Michigan law and precedent. The new law modifications bit in recognized Michigan trust law.
It’s IMPRESSIVE. In many cases, to preserve Michigan law, the new trust law follows the arrangements of the nationwide Estates and Protected Individuals Code, or EPIC, rather of UTC law. Our state embraced LEGENDARY back in 2000 to govern concerns surrounding the personality of estates in Michigan. This often involves the creation of a trust, so the two legal locations overlap.
As you can see, our new Michigan Trust Code brings a great deal of changes for trusts and trustees in our state.