Probate: trusts; procedures relating to the administration of unitrusts and income trusts; provide for. Creates new act.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill, titled the "Unitrust Act," creates a new framework for administering trusts in Michigan. It allows fiduciaries to convert certain trusts – specifically income trusts and express unitrusts – into unitrusts, and to adjust the calculation of unitrust amounts. The act establishes definitions for key terms related to trust administration and provides guidelines for how these conversions and adjustments should be handled, including the use of unitrust policies and considerations for tax benefits.
Key provisions
- Allows fiduciaries to convert income trusts to unitrusts and express unitrusts to income trusts.
- Provides a mechanism to change the percentage or method used to calculate unitrust amounts.
- Defines key terms such as ‘applicable value,’ ‘independent person,’ and ‘unitrust amount.’
- Requires the use of a ‘unitrust policy’ for administering unitrusts.
- Establishes standards for determining the fair market value of trust assets.
- Outlines procedures for notifying beneficiaries of proposed changes to trust administration.
- Specifies conditions under which a court may intervene to prevent a trustee from abusing their discretion.
- Addresses potential tax benefits associated with unitrusts and sets limitations on unitrust rates and policies.
Who is affected
- Trustees
- Beneficiaries of trusts
- Estate planning attorneys
- Financial advisors
Bill text
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Document of record
- Version
- House Introduced Bill
- Published
- Not published in the source record
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Sponsors
Official sponsors from legislative records.
4 on record
Primary sponsor
Douglas Wozniak
Cosponsors
Joseph Aragona
Timothy Beson
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