ESTATES AND PROTECTED INDIVIDUALS CODE
Act 386 of 1998
700.7603 Powers of settlor; exceptions; settlor as incapacitated individual; powers of withdrawal; actions by predecessor trustee.
Sec. 7603.
(1) Subject to subsection (2), while a trust is revocable, rights of the trust beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor. This subsection does not apply to either of the following:
(a) A trust created by the exercise of a power described in section 7820a.
(b) A trust created by the exercise of a power of appointment held by a trustee in a fiduciary capacity.
(2) If the trustee reasonably believes that the settlor of a revocable trust is an incapacitated individual, the trustee shall keep the settlor's designated agent or, if there is no designated agent or if the sole agent is a trustee, each beneficiary who, if the settlor were then deceased, would be a qualified trust beneficiary informed of the existence of the trust and reasonably informed of its administration.
(3) While a trust is not revocable and while a person has a currently exercisable power of withdrawal over the entire principal of the trust, the duties of a trustee are owed exclusively to the person.
(4) A person who succeeds to the position of trustee of a revocable trust upon the death, resignation, or incapacity of a trustee who was also the trust settlor is not liable for an action of the settlor while the settlor was serving as trustee.
(5) With respect to a predecessor trustee who was also the settlor, the successor trustee has no responsibility to investigate a transaction by the predecessor trustee, to review an account, to review an action of the predecessor trustee, or to take action for a breach of trust by the predecessor trustee.
History: Add. 2009, Act 46, Eff. Apr. 1, 2010 ;-- Am. 2012, Act 483, Imd. Eff. Dec. 28, 2012
PopularName Notes:
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Notes of Decisions
Brody v. Deutchman (In Re Rhea Brody Living Trust), 925 N.W.2d 921 (Mich. Ct. App. 2018).
· cites it 8× “• Overlook[ed] MCL 700.7603(1) and (2) entirely. • Fail[ed] to consider whether Cathy was "a person entitled to be reasonably informed, as referred to in MCL 700.”
in the Matter of Rhea Brody Living Trust (Mich. Ct. App. 2018).
· cites it 7× “ Overlooking MCL 700.7603(1) and (2) entirely. Failing to consider whether Cathy was “a person entitled to be reasonably informed, as referred to in MCL 700.”
In Re James M Kurtz Prot. Trust (Mich. Ct. App. 2023).
· cites it 2× “Appellant cites MCL 700.7603(3), which provides that when there is an irrevocable trust and there is a person who “has a currently exercisable power of withdrawal over the entire principal of the trust,” the trustee only owes a duty to the person who retains that power.”
Gladys Ragsdale Trust v. Tostige (In re Tostige), 537 B.R. 847 (Bankr. E.D. Mich. 2015).
· cites it 2× “7603 (1) (enacted in 2009, and first effective April 1, 2010) states that “[s]ubject to subsection (2), while a trust is revocable, rights of the trust beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor.”
in Re Massie Fam. Trust (Mich. Ct. App. 2016).
“Pursuant to MCL 700.7603(2), a trustee must keep those beneficiaries who will become qualified upon the settlor’s death “reasonably informed of [the trust’s] administration” if “the trustee reasonably believes that the settlor .”
in the Matter of Rhea Brody Living Trust (Mich. 2019).
“125(C)(33)(g) and MCL 700.7603(2). In all other respects, leave to appeal is DENIED, because we are not persuaded that the remaining question presented should be reviewed by this Court.”
Brody v. Deutchman (In re Rhea Brody Living Trust), 928 N.W.2d 222 (Mich. 2019).
“125(C)(33)(g) and MCL 700.7603(2). In all other respects, leave to appeal is DENIED, because we are not persuaded that the remaining question presented should be reviewed by this Court.”
In Re E Earl Lyden Trust (Mich. Ct. App. 2024).
“MCL 700.7603(1) provides that “while a trust is revocable, rights of the trust beneficiaries are subject to the control of, and the duties of the trustee owed exclusively to, the settlor.”
— Mich. Comp. Laws § 700.7603(1) — 3 cases
Brody v. Deutchman (In Re Rhea Brody Living Trust), 925 N.W.2d 921 (Mich. Ct. App. 2018).
“• Overlook[ed] MCL 700.7603(1) and (2) entirely. • Fail[ed] to consider whether Cathy was "a person entitled to be reasonably informed, as referred to in MCL 700.”
in the Matter of Rhea Brody Living Trust (Mich. Ct. App. 2018).
“ Overlooking MCL 700.7603(1) and (2) entirely. Failing to consider whether Cathy was “a person entitled to be reasonably informed, as referred to in MCL 700.”
In Re E Earl Lyden Trust (Mich. Ct. App. 2024).
“MCL 700.7603(1) provides that “while a trust is revocable, rights of the trust beneficiaries are subject to the control of, and the duties of the trustee owed exclusively to, the settlor.”
— Mich. Comp. Laws § 700.7603(2) — 6 cases
Brody v. Deutchman (In Re Rhea Brody Living Trust), 925 N.W.2d 921 (Mich. Ct. App. 2018).
“• Overlook[ed] MCL 700.7603(1) and (2) entirely. • Fail[ed] to consider whether Cathy was "a person entitled to be reasonably informed, as referred to in MCL 700.”
in the Matter of Rhea Brody Living Trust (Mich. Ct. App. 2018).
“ Overlooking MCL 700.7603(1) and (2) entirely. Failing to consider whether Cathy was “a person entitled to be reasonably informed, as referred to in MCL 700.”
in Re Massie Fam. Trust (Mich. Ct. App. 2016).
“Pursuant to MCL 700.7603(2), a trustee must keep those beneficiaries who will become qualified upon the settlor’s death “reasonably informed of [the trust’s] administration” if “the trustee reasonably believes that the settlor .”
in the Matter of Rhea Brody Living Trust (Mich. 2019).
“125(C)(33)(g) and MCL 700.7603(2). In all other respects, leave to appeal is DENIED, because we are not persuaded that the remaining question presented should be reviewed by this Court.”
— Mich. Comp. Laws § 700.7603(3) — 1 case
In Re James M Kurtz Prot. Trust (Mich. Ct. App. 2023).
“Appellant cites MCL 700.7603(3), which provides that when there is an irrevocable trust and there is a person who “has a currently exercisable power of withdrawal over the entire principal of the trust,” the trustee only owes a duty to the person who retains that power.”
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