Probate: trusts; duties and powers of trustee; modify. Amends secs. 7105 & 7110 of 1998 PA 386 (MCL 700.7105 & 700.7110).

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Introduced
Passed House
Passed Senate
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Became Law

Overview

This bill modifies sections of Michigan’s probate code related to trusts, specifically focusing on the duties and powers of trustees. It clarifies that the terms of a trust generally supersede certain provisions of the code, while also outlining specific areas where trust terms take precedence, such as bond requirements, compensation adjustments, and beneficiary notification. The bill also addresses the rights of qualified beneficiaries, including charitable organizations and those with nondisclosure rights.

Key provisions

Clarifies that trust terms generally govern trustee duties and beneficiary rights.
Specifies certain trust provisions that always take precedence over the probate code.
Addresses the power of the court to modify or terminate trusts.
Defines the rights of charitable organizations as qualified trust beneficiaries.
Establishes rights for individuals with nondisclosure correlative rights or powers.
Outlines the attorney general’s rights regarding charitable trusts.
Details specific trustee obligations regarding beneficiary information and account statements.
Addresses limitations on penalty provisions in trust documents.

Who is affected

Trustees
Trust beneficiaries
Charitable organizations
Individuals with nondisclosure rights
The Attorney General

Notable changes

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Version: House Introduced Bill
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