Closing · 6 min read
When a Michigan trust ends
MCL 700.7410 provides that a trust terminates to the extent it is revoked or expires under its terms, no purpose remains to be achieved, or its purposes have become impossible to achieve or are found by a court to be unlawful or contrary to public policy. A trustee of a trust whose property is worth less than $50,000, adjusted each year, may terminate it after 63 days' notice to the qualified trust beneficiaries if the value does not justify the cost of administration (MCL 700.7414). Consent and court modification are in MCL 700.7411 and 700.7412.
Distribution, the reserve and the proposal
On termination, the trustee proceeds expeditiously to distribute the property to those entitled, keeping a reasonable reserve for debts, taxes and expenses (MCL 700.7821(2)). The trustee may send the beneficiaries a proposal for distribution; a beneficiary's right to object ends if no objection is made within 28 days after it was sent, where the proposal stated the right and the time (MCL 700.7821(1)).
The final report and the periods that follow
A report is sent at the trust's termination (MCL 700.7814(3)). A beneficiary's proceeding for breach of trust is limited to 1 year after a report that adequately disclosed the potential claim and stated the time allowed, and otherwise to 5 years after the trust's termination or the other events MCL 700.7905(3) lists.
The statutes, verbatim
Modification or termination of trust; procedures for approval or disapproval
MCL 700.7410 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Termination or modification of noncharitable trust; section inapplicable to easement for conservation or preservation
MCL 700.7414 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Distribution upon termination
MCL 700.7821 ↗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
How does a Michigan trust end?
By revocation or expiration under its terms, when no purpose remains, or when its purposes become impossible or unlawful (MCL 700.7410); by consent or the court (MCL 700.7411, 700.7412); or, for a small trust, by the trustee after 63 days' notice (MCL 700.7414).
What is a proposal for distribution in Michigan?
A written proposal the trustee may send on termination; a beneficiary's right to object ends 28 days after it was sent if it stated the right and the time (MCL 700.7821(1)).
Does a Michigan trustee file a final account in court?
Not by default: a Michigan trust is administered free of the court unless an interested person invokes its jurisdiction (MCL 700.7201). The final report goes to the beneficiaries (MCL 700.7814(3)).
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
- How does a Michigan trust end?
- By revocation or expiration under its terms, when no purpose remains, or when its purposes become impossible or unlawful (MCL 700.7410); by consent or the court (MCL 700.7411, 700.7412); or, for a small trust, by the trustee after 63 days' notice (MCL 700.7414).
- What is a proposal for distribution in Michigan?
- A written proposal the trustee may send on termination; a beneficiary's right to object ends 28 days after it was sent if it stated the right and the time (MCL 700.7821(1)).
- Does a Michigan trustee file a final account in court?
- Not by default: a Michigan trust is administered free of the court unless an interested person invokes its jurisdiction (MCL 700.7201). The final report goes to the beneficiaries (MCL 700.7814(3)).
General information about Michigan law, not legal advice.