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Understanding Trusts in Michigan

 

By Jay Taylor, Attorney at Law

 

A trust is a flexible and powerful estate planning tool that allows you to manage your property during life and control how it is distributed after death. In Michigan, trusts are governed by the Estates and Protected Individuals Code and the Michigan Trust Code.

 

A trust involves three parties:

• The settlor, who creates and funds the trust;
• The trustee, who manages the assets; and
• The beneficiary, who receives the benefits.

 

For a trust to be valid, it must have intent to create a trust, identifiable property, a lawful purpose, and identifiable beneficiaries. Trusts can be revocable, meaning the creator can modify or terminate them during life, or irrevocable, which provide greater protection but less flexibility.

 

Trusts offer numerous advantages over wills. They can avoid probate, maintain privacy, and provide ongoing management of assets if the settlor becomes incapacitated. They are especially useful for families with minor children, blended families, or complex estates.

Creating a trust requires careful drafting and attention to detail. A Michigan estate planning attorney can ensure your trust reflects your goals and complies with state law, giving you peace of mind that your legacy is protected.