| 1 | 1 | | HOUSE BILL NO. 6011 A bill to amend 1998 PA 386, entitled "Estates and protected individuals code," (MCL 700.1101 to 700.8206) by adding section 7908a. the people of the state of michigan enact: Sec. 7908a. (1) A trustee may obtain a settlement of its accounts in accordance with subsection (2) when any of the following occur: (a) A trust terminates under the terms of the trust. (b) A trust terminates early under section 7414. (c) A trustee resigns or is removed. (d) A trustee seeks discharge of an interim accounting period when the trust is continuing. (2) A trustee that elects to proceed under this section shall provide all of the following to the qualified trust beneficiaries, any co-trustee of the trust, and the successor trustee, if applicable, within a reasonable time after termination of the trust under the terms of the trust, the resignation or removal of the trustee, or the end of the period for which the trustee is seeking discharge: (a) A statement showing the fair market value of the net assets to be distributed from a terminating trust or to a successor trustee. (b) A report of the trust for the prior 2 years showing all receipts and disbursements and inventory value of the net assets. (c) An estimate for any items reasonably anticipated to be received or disbursed. (d) The amount of any fees, including trustee fees, remaining to be paid. (e) Notice that the trust is terminating, or that the trustee has resigned or been removed, the time period for which the trustee seeks discharge of its accounts, and a statement providing that claims against a trustee under sections 7604 and 7905, if applicable, will be barred if no objections are received within the time period described in subsection (4). (f) The name and mailing address of the trustee. (g) The name and telephone number of a person that may be contacted for additional information. (3) The trustee may also provide the statement and notice described in subsection (2) to any other person that the trustee reasonably believes may have an interest in the trust. (4) If, after receiving the notice and trust information described in subsection (2), a qualified trust beneficiary or any other party that received the notice and trust information objects to a disclosed act or omission, the qualified trust beneficiary or any other party shall provide written notice of the objection to the trustee not later than 45 days after the notice was sent by the trustee. If no written objection is provided in the 45-day time period, the information provided under subsection (2) is considered approved by the recipient. The trustee, within a reasonable period of time following the expiration of the 45-day time period, shall distribute the assets as provided in the trust or to the successor trustee. If an objecting party gives the trustee a written objection within the applicable 45-day time period, the trustee or the objecting party may do either of the following: (a) Submit the written objection to the court for resolution and charge the expense of commencing a proceeding to the trust. (b) Resolve the objection by a nonjudicial settlement agreement or other written agreement. (5) Any agreement entered into under subsection (4)(b) may include a release, an indemnity clause, or both, on the part of the objecting party against the trustee relating to the trust. If the parties agree to a nonjudicial settlement agreement or other written agreement, any related expenses must be charged to the trust. On a resolution of an objection under this subsection, within a reasonable period of time, the trustee shall distribute the remaining trust assets as provided in the trust or to the successor trustee. (6) A successor trustee may rely on the statement or accounting received from the trustee for purposes of locating trust property under section 7813. If no qualified trust beneficiary or other party who received the notice and trust information objects within the 45-day time period, the successor trustee will be released from all liability for not objecting. (7) The trustee may rely on the written statement of a person receiving notice that the person does not object. (8) When a trustee distributes assets of a terminating trust or to the successor trustee after complying with this article and having received no objections, each person who received notice and either consented or failed to object under this section is barred from doing either of the following: (a) Bringing a claim against the trustee or challenging the validity of the trust to the same extent and with the same preclusive effect as if the court had entered a final order approving the trustee's final account. (b) Bringing a claim against the trustee for the period of such interim accounts to the same extent and with the same preclusive effect as if the court had entered a final order approving the trustee's interim accounts. (9) This section does not prevent a trustee from proceeding under section 7201 to have the trustee's accounts reviewed and settled by the court. |
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| 21 | 21 | | HOUSE BILL NO. 6011 |
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| 24 | 24 | | |
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| 25 | 25 | | A bill to amend 1998 PA 386, entitled |
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| 26 | 26 | | |
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| 27 | 27 | | "Estates and protected individuals code," |
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| 28 | 28 | | |
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| 29 | 29 | | (MCL 700.1101 to 700.8206) by adding section 7908a. |
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| 30 | 30 | | |
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| 31 | 31 | | the people of the state of michigan enact: |
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| 32 | 32 | | |
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| 33 | 33 | | Sec. 7908a. (1) A trustee may obtain a settlement of its accounts in accordance with subsection (2) when any of the following occur: |
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| 34 | 34 | | |
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| 35 | 35 | | (a) A trust terminates under the terms of the trust. |
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| 36 | 36 | | |
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| 37 | 37 | | (b) A trust terminates early under section 7414. |
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| 38 | 38 | | |
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| 39 | 39 | | (c) A trustee resigns or is removed. |
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| 40 | 40 | | |
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| 41 | 41 | | (d) A trustee seeks discharge of an interim accounting period when the trust is continuing. |
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| 42 | 42 | | |
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| 43 | 43 | | (2) A trustee that elects to proceed under this section shall provide all of the following to the qualified trust beneficiaries, any co-trustee of the trust, and the successor trustee, if applicable, within a reasonable time after termination of the trust under the terms of the trust, the resignation or removal of the trustee, or the end of the period for which the trustee is seeking discharge: |
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| 44 | 44 | | |
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| 45 | 45 | | (a) A statement showing the fair market value of the net assets to be distributed from a terminating trust or to a successor trustee. |
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| 46 | 46 | | |
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| 47 | 47 | | (b) A report of the trust for the prior 2 years showing all receipts and disbursements and inventory value of the net assets. |
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| 48 | 48 | | |
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| 49 | 49 | | (c) An estimate for any items reasonably anticipated to be received or disbursed. |
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| 50 | 50 | | |
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| 51 | 51 | | (d) The amount of any fees, including trustee fees, remaining to be paid. |
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| 52 | 52 | | |
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| 53 | 53 | | (e) Notice that the trust is terminating, or that the trustee has resigned or been removed, the time period for which the trustee seeks discharge of its accounts, and a statement providing that claims against a trustee under sections 7604 and 7905, if applicable, will be barred if no objections are received within the time period described in subsection (4). |
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| 54 | 54 | | |
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| 55 | 55 | | (f) The name and mailing address of the trustee. |
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| 56 | 56 | | |
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| 57 | 57 | | (g) The name and telephone number of a person that may be contacted for additional information. |
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| 58 | 58 | | |
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| 59 | 59 | | (3) The trustee may also provide the statement and notice described in subsection (2) to any other person that the trustee reasonably believes may have an interest in the trust. |
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| 60 | 60 | | |
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| 61 | 61 | | (4) If, after receiving the notice and trust information described in subsection (2), a qualified trust beneficiary or any other party that received the notice and trust information objects to a disclosed act or omission, the qualified trust beneficiary or any other party shall provide written notice of the objection to the trustee not later than 45 days after the notice was sent by the trustee. If no written objection is provided in the 45-day time period, the information provided under subsection (2) is considered approved by the recipient. The trustee, within a reasonable period of time following the expiration of the 45-day time period, shall distribute the assets as provided in the trust or to the successor trustee. If an objecting party gives the trustee a written objection within the applicable 45-day time period, the trustee or the objecting party may do either of the following: |
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| 62 | 62 | | |
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| 63 | 63 | | (a) Submit the written objection to the court for resolution and charge the expense of commencing a proceeding to the trust. |
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| 64 | 64 | | |
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| 65 | 65 | | (b) Resolve the objection by a nonjudicial settlement agreement or other written agreement. |
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| 66 | 66 | | |
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| 67 | 67 | | (5) Any agreement entered into under subsection (4)(b) may include a release, an indemnity clause, or both, on the part of the objecting party against the trustee relating to the trust. If the parties agree to a nonjudicial settlement agreement or other written agreement, any related expenses must be charged to the trust. On a resolution of an objection under this subsection, within a reasonable period of time, the trustee shall distribute the remaining trust assets as provided in the trust or to the successor trustee. |
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| 68 | 68 | | |
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| 69 | 69 | | (6) A successor trustee may rely on the statement or accounting received from the trustee for purposes of locating trust property under section 7813. If no qualified trust beneficiary or other party who received the notice and trust information objects within the 45-day time period, the successor trustee will be released from all liability for not objecting. |
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| 70 | 70 | | |
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| 71 | 71 | | (7) The trustee may rely on the written statement of a person receiving notice that the person does not object. |
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| 72 | 72 | | |
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| 73 | 73 | | (8) When a trustee distributes assets of a terminating trust or to the successor trustee after complying with this article and having received no objections, each person who received notice and either consented or failed to object under this section is barred from doing either of the following: |
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| 74 | 74 | | |
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| 75 | 75 | | (a) Bringing a claim against the trustee or challenging the validity of the trust to the same extent and with the same preclusive effect as if the court had entered a final order approving the trustee's final account. |
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| 76 | 76 | | |
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| 77 | 77 | | (b) Bringing a claim against the trustee for the period of such interim accounts to the same extent and with the same preclusive effect as if the court had entered a final order approving the trustee's interim accounts. |
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| 78 | 78 | | |
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| 79 | 79 | | (9) This section does not prevent a trustee from proceeding under section 7201 to have the trustee's accounts reviewed and settled by the court. |
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