Michigan’s New Trust Law

On June 18, 2009, the new Michigan Trust Code was signed into law. The law takes effect on April 1, 2010, and will strengthen and modernize Michigan’s laws relating to trusts. The law is based on the Uniform Trust Code which has been enacted in one form or another in 20 other states.

The new law has many features. In current law, there was assumed to be a lower standard for capacity to execute a Will, as compared to a Trust. Under the Code, Trusts and Wills will be subject to the same tests for the signer’s “capacity”. The law also creates similar treatment for “terror clauses” (where a beneficiary forfeits his share if he contests the estate plan) . Enforcement of such clauses will be limited to situations where the contesting person fails to have probable cause for the contest. Also, the new law imposes duties on “trust protectors” – persons who have certain powers (like firing the trustee) over trusts.

Contact the estate planning lawyers at Driggers, Schultz & Herbst to learn more about the new Michigan Trust Code and how it might affect your estate plan.