Core duties · 6 min read
Keeping the qualified trust beneficiaries informed
MCL 700.7814(1) provides that a trustee keeps the qualified trust beneficiaries reasonably informed about the administration and of the material facts necessary for them to protect their interests, and — unless unreasonable under the circumstances — promptly responds to a trust beneficiary's request for information related to the administration. On a reasonable request, a beneficiary receives a copy of the terms of the trust that describe or affect the beneficiary's interest and relevant information about the trust property (MCL 700.7814(2)(a)).
The notices
Within 63 days after accepting a trusteeship, the trustee notifies the qualified trust beneficiaries of the acceptance, the court of registration (if any), and the trustee's name, address and telephone number (MCL 700.7814(2)(b)); within 63 days after learning the trust is irrevocable, of its existence, the settlor's identity, the court of registration (if any), and their right to request the terms (MCL 700.7814(2)(c)); and in advance, of any change in the method or rate of the trustee's compensation (MCL 700.7814(2)(d)). Notice is sent in a manner reasonably suitable and likely to result in receipt (MCL 700.7109).
The report
At least annually and at termination, the trustee sends a report of the trust property, liabilities, receipts and disbursements — including the source and amount of the trustee's compensation — with a listing of the trust property and, if feasible, its market values, to the distributees and permissible distributees and to other beneficiaries who request it (MCL 700.7814(3)). A beneficiary may waive reports and later withdraw the waiver (MCL 700.7814(5)). A report that adequately discloses a potential claim and states the time allowed starts a one-year period for a proceeding (MCL 700.7905(1)(a)).
When the terms keep the trust undisclosed
Where a noncharitable trust's instrument clearly expresses the settlor's intent to withhold information from beneficiaries, MCL 700.7409a allows the trustee to follow it during a nondisclosure period of at most 25 years; the holders of the instrument's nondisclosure rights or protection powers receive the notices meanwhile, and at the period's end the ordinary notices follow. The duty to inform is otherwise one of the code's mandatory rules (MCL 700.7105).
The statutes, verbatim
Notice; methods; waiver
MCL 700.7109 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Trusts with nondisclosure period
MCL 700.7409a ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Duty to inform and report
MCL 700.7814 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Commencement of proceedings; limitations
MCL 700.7905 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Common questions
Who is entitled to information about a Michigan trust?
The qualified trust beneficiaries are kept reasonably informed, and any trust beneficiary's request for information is answered promptly unless unreasonable (MCL 700.7814(1)); a beneficiary may request the terms that describe or affect the beneficiary's interest (MCL 700.7814(2)(a)).
Does a Michigan trustee have to send an annual report?
Michigan's statute provides for a report at least annually and at termination to the distributees and permissible distributees and to other beneficiaries who request it (MCL 700.7814(3)); a beneficiary may waive it (MCL 700.7814(5)).
Can a Michigan trust be kept secret from the beneficiaries?
For a time, where the instrument clearly expresses that intent: MCL 700.7409a permits a nondisclosure period of at most 25 years, with the notices going meanwhile to the holders of the instrument's nondisclosure rights or protection powers.
Related reading
The Learning Center is general information about Michigan law — not legal advice, and not a substitute for advice from a licensed Michigan attorney about your specific facts. TrusteeClear is software, not a law firm.
Frequently asked questions
- Who is entitled to information about a Michigan trust?
- The qualified trust beneficiaries are kept reasonably informed, and any trust beneficiary's request for information is answered promptly unless unreasonable (MCL 700.7814(1)); a beneficiary may request the terms that describe or affect the beneficiary's interest (MCL 700.7814(2)(a)).
- Does a Michigan trustee have to send an annual report?
- Michigan's statute provides for a report at least annually and at termination to the distributees and permissible distributees and to other beneficiaries who request it (MCL 700.7814(3)); a beneficiary may waive it (MCL 700.7814(5)).
- Can a Michigan trust be kept secret from the beneficiaries?
- For a time, where the instrument clearly expresses that intent: MCL 700.7409a permits a nondisclosure period of at most 25 years, with the notices going meanwhile to the holders of the instrument's nondisclosure rights or protection powers.
General information about Michigan law, not legal advice.