§ 7704 (vacancy of guardianship; Appointment of successor). Section 7704 deals with vacancies in the office of trustee and the appointment of successors. These are standard rules for situations where the settlor of the trust does not address the issue in the fiduciary deed. The Michigan Trust Code removes a standard provision from utc that allows beneficiaries of non-responsible trusts to appoint a trustee. However, grantors are free to delegate this power if they wish in the fiduciary act. A living trust in Michigan can be a valuable estate planning tool that gives you control over your assets and ensures confidentiality. Also known as an inter vivos trust, a revocable living trust allows you to use your assets while they are trustees during your lifetime. Article 7901 (Recourse in case of breach of trust). Section 7901 provides the court with a wide range of remedies for breach of trust, including specific enforcement, injunction, damages, accountability orders, appointment of a special trustee, suspension or dismissal of a trustee, reduction of compensation, imposition of a variety of other equitable remedies or additional remedies that the court deems appropriate. Sometimes, however, there are facts and circumstances that justify an action challenging the validity of the trust agreement itself.
These scenarios include cases where: (i) third parties have over-influenced a vulnerable/vulnerable person to revise their trust, to give them a substantial economic interest in the trust, or to place the influencer in a position of power and control; (ii) an offender orchestrates a system of fraudulent misappropriation of funds from the deceased to the culprit; or (iii) at the time of enforcement, the testator did not have the capacity to make a will necessary to enforce the trust agreement. From a legal perspective, the validity of a trust can be questioned for the following reasons: Over the past decade, we have helped 1,000 clients set up all kinds of living trusts, wills, powers of attorney and estate plans. Article 7708 (Remuneration of trustees). Section 7708 clarifies that trustees are entitled to reasonable remuneration for their activities as trustees. It does not seek to define how this is determined, nor to change the applicable law in any way. § 7814 (obligation to inform and report). Section 7814 requires trustees to keep beneficiaries informed of the administration of the trust; provide beneficiaries with a copy of the fiduciary instrument; communicate the trustee`s status as trustee and the establishment of the trust; and provide information on the trustee`s remuneration. In addition, the trustee must report regularly to the beneficiaries on the management of the trust. This section describes in detail the type of report provided periodically. Article 7903 (Damages in the absence of infringement).
Section 7903 holds trustees liable for profits from the administration of the trust. The Michigan Trust Code specifies that this does not apply to profits from the offsetting or reimbursement of expenses or fee-based facilities of banking fiduciary services, as permitted by the Banking Code since January 2007. The Michigan Trust Code also extends protection against loss or amortization of trust assets (if this is not accompanied by a breach of trust) to the inability to generate income. Article 7809 (Protection of legitimate expectations). This article ratifies the use of guarantees of legitimate expectations. Trustees are thought to be widespread in Michigan. However, Michigan does not have a law governing them, and the (second) and (third) restatements of the Trust Act offer relatively little guidance. Thirty-two states, including all UTC states, have adopted the provisions of the UTC as directed trusts or have specialized trust protection legislation, or both. However, there are important distinctions in Michigan law that differ from UTC`s Trust Protector regulations and many other states with Trust Protector laws. First, trust protectors are trustees under the ERM, unless their authority is an administrative authority within the meaning of section 675(4) of the Internal Revenue Code. In addition, this provision cannot be amended by the grantor.
For a will to take effect, it must be reviewed or approved by a court. This procedure takes months and involves the costs of an executor, a lawyer and court costs. The heirs receive their inheritance only after the conclusion of the succession. However, no discount is required for a trust. There is no legal process and the assets of a trust can be distributed more quickly. Michigan has adopted the Uniform Probate Code, which makes its certification process more efficient than some, but still takes months to complete. .