Michigan Compiled Laws

Mich. Comp. Laws § 700.7912 (2026)

Protection of person dealing with trustee.

✓ current as of July 2026

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ESTATES AND PROTECTED INDIVIDUALS CODE

Act 386 of 1998

700.7912 Protection of person dealing with trustee.

Sec. 7912.

(1) A person other than a trust beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly exercised the power.

(2) A person other than a trust beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of the exercise of the powers.

(3) A person who in good faith delivers assets to a trustee need not ensure the proper application of the assets.

(4) A person other than a trust beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.

(5) Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.

History: Add. 2009, Act 46, Eff. Apr. 1, 2010

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Notes of Decisions

Cited in 2 cases (1 in the last 5 years), 2015–2023 · leading case: In Re James M Kurtz Prot. Trust (Mich. Ct. App. 2023).

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In Re James M Kurtz Prot. Trust (Mich. Ct. App. 2023). “MCL 700.7912. -4- Appellant’s argument that the trial court erred by nullifying the 2010 restatement of the JMK Trust is without merit because the 1995 JMK Trust became largely irrevocable after Barbara Kurtz’s death.”

in Re Gerald R Mahoney Trust & Nancy W Mahoney Trust (Mich. Ct. App. 2015). “7912] a sale, encumbrance, or other transaction involving the investment or management of trust property entered into by the trustee for the trustee 's own personal account or which is otherwise affected by a substantial conflict between the trustee’s fiduciary and personal…”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.