Michigan House Bill HB6011

Michigan 2023-2024 Regular Session

• Introduced: 9/26/24
• Refer: 9/26/24
• Report Pass: 12/4/24

Caption

Probate: trusts; process for settling an account; modify. Amends 1998 PA 386 (MCL 700.1101 - 700.8206) by adding sec. 7908a.

Impact

If enacted, this bill will enhance the transparency and accountability of trustees in their management of trust properties. By clearly delineating the required notices and reports that trustees must provide to beneficiaries, HB6011 aims to ensure that all parties involved are adequately informed about the trust's financial status and the distributions of assets. This legislative change is expected to reduce disputes by establishing a clear framework for beneficiaries to raise objections and have those objections resolved expediently.

Summary

House Bill 6011 aims to amend the Estates and Protected Individuals Code in Michigan by adding a new section that outlines the process a trustee must follow to obtain a settlement of accounts. The bill specifies circumstances under which a trustee can seek such a settlement, including the termination of a trust, the resignation or removal of a trustee, or the conclusion of an interim accounting period. This bill seeks to clarify the fiduciary responsibilities of trustees, facilitating a more straightforward process for both trustees and beneficiaries during trust settlements.

Contention

Notable points of contention surrounding HB6011 include concerns about the potential imbalance of power between trustees and beneficiaries. Some stakeholders argue that while the bill secures trustee accountability, it may limit beneficiaries' ability to challenge trustee decisions effectively. Critics are particularly wary of the 45-day period for beneficiaries to file objections without which they lose their rights to contest, as this could lead to rushed decisions in cases where beneficiaries require more time to fully comprehend the implications of the trustee's statements. Proponents argue this framework is necessary to expedite trust settlements and prevent prolonged disputes.