The author goes over the new Michigan Trust Code.
Effective April 1, 2010, Michigan has a brand-new law governing trusts set up here in our state. The trust law was upgraded to deal with gaps in current law, produce uniformity between our trust law which of other states, and make it much easier for Michigan banks to designate a local trustee to supervise trusts developed here.
Trust law is made complex, a lot so that lawyers who focus on this location are taking half-day training courses to ensure they completely understand all the modifications in the brand-new Michigan Trust Code!
Here is a layperson’s summary of a few of the most important differences in the new code:
Conforms with the Uniform Trust Code. The UTC was created to help standardize trust law across states, and Michigan’s new law integrates many UTC arrangements. More than 20 states now base their trust law on the UTC, and legislation is pending in several other states to make their trust laws comply with the UTC as well. Using the UTC as the basis for our trust law makes it simpler for trustees in other states to be selected to manage Michigan trusts while keeping those trusts based here in Michigan and keeping related administrative jobs.
Fills in legal spaces. Previously, our trust law was filled with incomplete and old provisions. Some 34 different areas were contributed to fill in these gaps and improve our trust law. Among the concerns clarified are the law associating with accepting or declining a trusteeship, filling a trustee job, the resignation of trustees, and the elimination of trustees. The new law outlines situations under which a little or uneconomic trust can be ended, supplies a time limitation for challenging a revocable trust, and broadens the enabled usages of certificates of trust.
Sticks with Michigan law. Where developed Michigan law and the UTC conflict, for the a lot of part the new trust law adheres to longstanding Michigan law and precedent. The brand-new law modifications little in recognized Michigan trust law.
It’s EPIC. In many cases, to protect Michigan law, the new trust law follows the provisions of the national Estates and Protected People Code, or EPIC, instead of UTC law. Our state embraced IMPRESSIVE back in 2000 to govern problems surrounding the disposition of estates in Michigan. This typically includes the creation of a trust, so the 2 legal locations overlap.
As you can see, our brand-new Michigan Trust Code brings a lot of modifications for trusts and trustees in our state.