Serving with co-trustees in Michigan

Acting by majority, and participating

MCL 700.7703 provides that cotrustees act by majority decision, and that each cotrustee participates in the trustees' functions unless unavailable because of absence, illness, disqualification or other temporary incapacity, or the function was properly delegated to another trustee. When prompt action is needed to avoid injury to the trust property and a cotrustee is unavailable, or fails or refuses to participate after notice, the remaining cotrustee or a majority of the remaining cotrustees may act for the trust.

Delegation between cotrustees

By agreement, a trustee may delegate to a cotrustee a power that could be delegated to an outside agent, or a power only a trustee can perform if the qualified trust beneficiaries are notified within 28 days; a revocation of a delegation that required notice is noticed within 28 days after it (MCL 700.7703(4), (5)).

Dissent and liability

A trustee who is aware of but does not join in a cotrustee's action, and dissents in writing to each cotrustee at or before the time of the action, is not liable for it; a dissenting trustee who joins at the majority's direction after notifying a cotrustee of the dissent in writing is not liable either (MCL 700.7703(7), (9)).

Separate trustees and the certificate of trust

A trust may divide the trusteeship into separate offices — such as investment and distribution — whose holders are not cotrustees of one another (MCL 700.7703b). A certificate of trust states the cotrustees' authority to sign and whether all or fewer than all are required to exercise a power (MCL 700.7913(1)(e)).

The statutes, verbatim

• Cotrustees; powers and duties; relief of liability

  MCL 700.7703 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Rules of construction; nonfiduciary powers under a trust; power of direction to trust director; duties and limitations of trust director and trustee; liability; applicability of rules to trusteeship; definitions

  MCL 700.7703a ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Separate trustees provision; trust instrument; duties and powers; liability; definitions

  MCL 700.7703b ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Certificate of trust

  MCL 700.7913 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

Common questions

Frequently asked questions

Do Michigan co-trustees have to agree on everything?

No. Cotrustees act by majority decision (MCL 700.7703(1)), and a dissenting trustee's written dissent bears on its liability (MCL 700.7703(7), (9)).

Can a Michigan co-trustee hand a task to the other trustee?

By agreement, yes — for a power only a trustee can perform, with notice to the qualified trust beneficiaries within 28 days (MCL 700.7703(4)).

What is a separate trustee in Michigan?

The holder of one of the separate offices a trust may create, such as investment or distribution; separate trustees are not cotrustees of one another (MCL 700.7703b).

General information about Michigan law, not legal advice.