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2. Effective: April 1, 2010

3. Summary:

a. States that the terms of a trust would prevail over Article 7 except in specific areas.

b. Provides that the capacity required to create, amend, or revoke a revocable trust, or to direct the actions of its trustee, would be the same as that required to make a will.

c. Specifies the standard of capacity for making Wills which will include language invoking a higher contract standard.   The change will align the rules for determining the capacity required of Wills, Revocable Trusts, Durable Powers of Attorney and Beneficiary Designations.

d. Allows a settlor to revoke or amend a trust unless the terms of the trust provided that it was irrevocable.

e. Provides that certain rules of construction that apply to the interpretation and  disposition of property by will also would apply to trust property.

f. Extends the provisions concerning the enforceability of in terrorem clauses or no contest clauses in Wills to trusts.

g. Provides for representation of beneficiaries by fiduciaries and others in such  matters as the receipt of notice and consent.

h. Specifies requirements for the creation of a trust.

i. Provides that trustee is to give notice of a proposed transfer of the principal place of administration to qualified trust beneficiaries before change to allow 63 days for objections.

j. Provides for the recognition of non judicial settlement agreements.

k. Provides for the use of trust protectors.

a. While the new Michigan Trust Code is basically an effort to codify existing Michigan Trust law, it creates several changes which sometimes change existing law or more often add provisions which previously did not exist in Michigan law.  It is extremely important that probate and estate planning practitioners become familiar with its provisions.

b. You may find an overview article on the Michigan Trust Code written by Mark Harder on the State Bar website at: http://www.michbar.org/probate/trustcode.cfm

c. You may submit questions concerning the interpretation and implementation of the Estates and Protected Individuals Code, including the new Michigan Trust Code, to our EPIC panel in the EPIC Questions and Answers section of this website.  You may also view other questions and answers concerning EPIC there.

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Last updated 6-18-09

Send your comments, questions and suggestions to Phil Harter at 161 E Michigan Avenue, Battle Creek, Michigan 49014
or e mail to: pharter@calhouncountymi.gov