Mich. Comp. Laws » Michigan Compiled Laws / Chapter 700 / Act 386 of 1998
Michigan Compiled Laws

Mich. Comp. Laws § 700.7402 (2026)

Creating trust; requirements.

✓ current as of July 2026
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ESTATES AND PROTECTED INDIVIDUALS CODE


Act 386 of 1998


700.7402 Creating trust; requirements.

Sec. 7402.

    (1) A trust is created only if all of the following apply:

    (a) The settlor has capacity to create a trust.

    (b) The settlor indicates an intention to create the trust.

    (c) The trust has a definite beneficiary or is either of the following:

    (i) A charitable trust.

    (ii) A trust for a noncharitable purpose under section 7409 or a trust for the care of an animal under section 7408.

    (d) The trustee has duties to perform.

    (e) The same person is not the sole trustee and sole beneficiary.

    (2) A trust beneficiary is definite if the trust beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.

    (3) A power in a trustee to select a trust beneficiary from an indefinite class is valid only in a charitable trust.

    

    

History: 1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010 ;-- Am. 2024, Act 1, Imd. Eff. Feb. 21, 2024

PopularName Notes:

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Notes of Decisions
Cited in 13 cases (4 in the last 5 years), 2014–2025 · leading case: in Re Mardigian Est., 879 N.W.2d 313 (Mich. Ct. App. 2015).
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in Re Mardigian Est., 879 N.W.2d 313 (Mich. Ct. App. 2015). · cites it 2× “” MCL 700.7402(1)(a)-(b). “A trust is void to the extent its creation was induced by fraud, duress, or undue influence.”
Nash v. Duncan Park Comm'n, 304 Mich. App. 599 (Mich. Ct. App. 2014). “MCL 700.7402(1) provides that a trust is created if all of the following apply: (a) The settlor has capacity to create a trust.”
Kohut v. Lois & Richard Lewiston Living Trust (In re Lewiston), 532 B.R. 36 (Bankr. E.D. Mich. 2015). · cites it 2× “Section 700.7402 sets forth the requirements for the creation of a trust in Michigan.”
Trevor Legassick v. Univ. of Michigan Regents (Mich. Ct. App. 2019). · cites it 2× “MCL 700.7402(1)(a), (b). The trust must have a definite beneficiary or is a charitable trust or a trust for a noncharitable purpose.”
in Re Duncan Park Trust (Mich. Ct. App. 2017). “Finally, plaintiff argues that the probate court erred in appointing the City as sole trustee because MCL 700.7402(1)(e) provides that a trust is created only if “[t]he same person is not the sole trustee and sole beneficiary.”
in Re Rebecca L Clemence Revocable Trust (Mich. Ct. App. 2017). “MCL 700.7402(1)(a) provides that a trust settlor must have sufficient mental “capacity to create a trust.”
in Re Rebecca L Clemence Revocable Trust (Mich. Ct. App. 2017). “MCL 700.7402(1)(a) provides that a trust settlor must have sufficient mental “capacity to create a trust.”
in Re Collier Est. (Mich. Ct. App. 2020). “MCL 700.7402(1), which address the creation of trusts, provides: (1) A trust is created only if all of the following apply: (a) The settlor has capacity to create a trust.”
in Re Geraldine M Benjamin Trust (Mich. Ct. App. 2020). “A trust is valid if (1) the settlor has capacity, (2) the settlor intends to create the trust, (3) there is a definite beneficiary, (4) the trustee has duties to perform, and (5) the same person is not sole trustee and sole beneficiary.”
Terry Fam. Ltd. P'ship v. Dep't of Treasury (Mich. Ct. App. 2021). “” MCL 700.7402(1)(b). Petitioner cannot establish that Terry intended to create a trust because the partnership agreement stated that the parties wanted to form a limited partnership, not a trust.”
Mary Sparling v. John R Sparling (Mich. Ct. App. 2022). “See MCL 700.7402(1)(a). Yet John contends that the jury’s verdict does not apply because the jury only focused on the written instrument, and did not decide whether Walter had the capacity to form an oral trust when he met with Fletcher and his family to discuss the upcoming…”
20221117_C357831_47_357831.Opn.Pdf (Mich. Ct. App. 2022). “MCL 700.7402(1). A trust is invalid if it was created by fraud, duress, or undue influence.”
Show all 13 citing cases →
— Mich. Comp. Laws § 700.7402(1) — 5 cases
Nash v. Duncan Park Comm'n, 304 Mich. App. 599 (Mich. Ct. App. 2014). “MCL 700.7402(1) provides that a trust is created if all of the following apply: (a) The settlor has capacity to create a trust.”
in Re Collier Est. (Mich. Ct. App. 2020). “MCL 700.7402(1), which address the creation of trusts, provides: (1) A trust is created only if all of the following apply: (a) The settlor has capacity to create a trust.”
in Re Geraldine M Benjamin Trust (Mich. Ct. App. 2020). “A trust is valid if (1) the settlor has capacity, (2) the settlor intends to create the trust, (3) there is a definite beneficiary, (4) the trustee has duties to perform, and (5) the same person is not sole trustee and sole beneficiary.”
20221117_C357831_47_357831.Opn.Pdf (Mich. Ct. App. 2022). “MCL 700.7402(1). A trust is invalid if it was created by fraud, duress, or undue influence.”
In Re Tippett Fam. Trust (Mich. Ct. App. 2025).
— Mich. Comp. Laws § 700.7402(1)(a) — 5 cases
in Re Mardigian Est., 879 N.W.2d 313 (Mich. Ct. App. 2015). “” MCL 700.7402(1)(a)-(b). “A trust is void to the extent its creation was induced by fraud, duress, or undue influence.”
in Re Rebecca L Clemence Revocable Trust (Mich. Ct. App. 2017). “MCL 700.7402(1)(a) provides that a trust settlor must have sufficient mental “capacity to create a trust.”
in Re Rebecca L Clemence Revocable Trust (Mich. Ct. App. 2017). “MCL 700.7402(1)(a) provides that a trust settlor must have sufficient mental “capacity to create a trust.”
Trevor Legassick v. Univ. of Michigan Regents (Mich. Ct. App. 2019). “MCL 700.7402(1)(a), (b). The trust must have a definite beneficiary or is a charitable trust or a trust for a noncharitable purpose.”
Mary Sparling v. John R Sparling (Mich. Ct. App. 2022). “See MCL 700.7402(1)(a). Yet John contends that the jury’s verdict does not apply because the jury only focused on the written instrument, and did not decide whether Walter had the capacity to form an oral trust when he met with Fletcher and his family to discuss the upcoming…”
— Mich. Comp. Laws § 700.7402(1)(b) — 1 case
Terry Fam. Ltd. P'ship v. Dep't of Treasury (Mich. Ct. App. 2021). “” MCL 700.7402(1)(b). Petitioner cannot establish that Terry intended to create a trust because the partnership agreement stated that the parties wanted to form a limited partnership, not a trust.”
— Mich. Comp. Laws § 700.7402(1)(c) — 1 case
Trevor Legassick v. Univ. of Michigan Regents (Mich. Ct. App. 2019). “MCL 700.7402(1)(a), (b). The trust must have a definite beneficiary or is a charitable trust or a trust for a noncharitable purpose.”
— Mich. Comp. Laws § 700.7402(1)(e) — 1 case
in Re Duncan Park Trust (Mich. Ct. App. 2017). “Finally, plaintiff argues that the probate court erred in appointing the City as sole trustee because MCL 700.7402(1)(e) provides that a trust is created only if “[t]he same person is not the sole trustee and sole beneficiary.”
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