Michigan Compiled Laws

Mich. Comp. Laws § 700.7404 (2026)

Trust purposes.

✓ current as of July 2026

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ESTATES AND PROTECTED INDIVIDUALS CODE

Act 386 of 1998

700.7404 Trust purposes.

Sec. 7404.

A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve.

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

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Notes of Decisions

Cited in 9 cases (5 in the last 5 years), 2005–2024 · leading case: Echelon Homes, LLC v. Carter Lumber Co., 694 N.W.2d 544 (Mich. 2005).

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Echelon Homes, LLC v. Carter Lumber Co., 694 N.W.2d 544 (Mich. 2005). · cites it 2× “5510(2) ("did not have actual knowledge"); MCL 700.7404 ("without actual knowledge"); MCL 750.”

Papazian v. Goldberg (In Re Mardigian Est.), 917 N.W.2d 325 (Mich. 2018). “7410(1) provides that "a trust terminates to the extent .”

P in Re E Earl Lyden Trust (Mich. Ct. App. 2024). · cites it 11× “3 On the authority of MCL 700.7404 and MCL 700.7410(1), I would hold that the Trust Earl executed during the divorce proceedings terminated or was rendered void at the time of his death because the purpose of the Trust had become contrary to public policy to the extent that the…”

Traxler v. Rothbart, 703 N.W.2d 796 (Mich. 2005). · cites it 2× “§ 700.7404. MARKMAN, J. dissents and states as follows: I would reverse the decision of the Court of Appeals and remand to the trial court for the entry of an order of specific performance of the purchase agreement.”

Kohut v. Lois & Richard Lewiston Living Trust (In re Lewiston), 532 B.R. 36 (Bankr. E.D. Mich. 2015). · cites it 2× “Section 700.7404 then places limits upon the purposes for which a trust may be created in Michigan: “A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve.”

In Re the Bernard Boutet Revocable Living Trust (Mich. Ct. App. 2024). · cites it 3× “, because MCL 700.7404 requires the purpose of a trust to be “possible to achieve” and MCL 700.”

C in Re the Bernard Boutet Revocable Living Trust (Mich. Ct. App. 2024). · cites it 3× “-2- The language of Erickson’s Estate, however, potentially conflicts with MCL 700.7404, which states that “[a] trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve.”

Cindy Schaaf v. Charlene Forbes (Mich. Ct. App. 2021). “7815(3)(b) (“A trustee may not exercise a power to make distributions pursuant to a discretionary trust provision in a manner to satisfy a legal obligation of support that the trustee personally owes another person.”

In Re E Earl Lyden Trust (Mich. Ct. App. 2024). “” MCL 700.7404. Additionally, a trust terminates if the purposes of the trust “are found by a court to be unlawful or contrary to public policy.”

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