An Update on The New Michigan Trust Code

The below is from a Plant Moran email blast that my dad forwarded to me this morning…  Thought it was important enough to share.

  • The MTC was signed into law by Governor Granholm on June 18, 2009 and will become effective April 1, 2010.  However, the MTC will have immediate impact as individuals create or amend their estate planning documents in 2009.
  • Michigan becomes the 23rd state to adopt a trust code based on the Uniform Trust Code drafted 9 years ago.  By adopting the MTC, Michigan neutralizes the attraction of other states, such as Arizona and Florida, as trust domiciles.  The new law will keep trust management and administration in Michigan.
  • The MTC modernizes the law of trusts and provides a complete set of rules addressing the creation, administration, modification and termination of trusts.
  • Some specific highlights:
  • The MTC contains new law concerning the use of trust protectors.
  • The law sets the standard of capacity to create a revocable trust to be the same as the capacity to make a will.
  • Codifies common law and traditional rules concerning the rights of creditors.
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