Michigan Compiled Laws

Mich. Comp. Laws § 700.7507 (2026)

Overdue distribution; "mandatory distribution" defined.

✓ current as of July 2026
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ESTATES AND PROTECTED INDIVIDUALS CODE


Act 386 of 1998


700.7507 Overdue distribution; "mandatory distribution" defined.

Sec. 7507.

    (1) Whether or not a trust contains a spendthrift provision, a creditor or assignee of a trust beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the trust beneficiary within a reasonable time after the designated distribution date.

    (2) As used in this section, "mandatory distribution" means a distribution of income or principal that the trustee is required to make to a trust beneficiary under the terms of the trust, including a distribution upon termination of the trust. Mandatory distribution does not include a distribution subject to the exercise of the trustee's discretion even if either of the following applies:

    (a) The direction is expressed in the form of a standard of distribution.

    (b) The terms of the trust authorizing a distribution use language of discretion and language of direction.

History: 1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2000, Act 54, Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010

PopularName Notes:

EPIC
Notes of Decisions
Cited in 2 cases (1 in the last 5 years), 2013–2023 · leading case: Auto-Owners Ins. v. All Star Lawn Specialists Plus, Inc., 838 N.W.2d 166 (Mich. Ct. App. 2013).
Auto-Owners Ins. v. All Star Lawn Specialists Plus, Inc., 838 N.W.2d 166 (Mich. Ct. App. 2013). · cites it 2× “At the heart of this dispute is the following question— was the disallowance of claim Wood sent in response to Independent Bank’s statement and proof of claim a disal-lowance by the trust? For a claim to be properly disallowed by the trust, Wood had to comply with former MCL…”
Jones v. Jones (Mass. App. Ct. 2023). “See Mich. Comp. Laws § 700.7507 (allowing creditors to reach undistributed mandatory distributions after distribution date, unless distribution is subject to exercise of trustee's discretion -- even if "[t]he direction is expressed in the form of a standard of distribution," or…”
— Mich. Comp. Laws § 700.7507(a) — 1 case
Auto-Owners Ins. v. All Star Lawn Specialists Plus, Inc., 838 N.W.2d 166 (Mich. Ct. App. 2013). “At the heart of this dispute is the following question— was the disallowance of claim Wood sent in response to Independent Bank’s statement and proof of claim a disal-lowance by the trust? For a claim to be properly disallowed by the trust, Wood had to comply with former MCL…”
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