Michigan adopted the Uniform Trust Code in 2010 as part of its Estates and Protected Individuals Code. The state follows most standard UTC rules, but Michigan made one modification that sets it apart from nearly every other state: the annual accounting requirement cannot be waived. Even if the trust document says "the trustee never has to account to anyone," Michigan law overrides that. If you're a trustee in Michigan, you're providing annual accountings whether the trust creator wanted it or not.
This guide applies to both revocable and irrevocable trusts in Michigan.
Where Michigan trust law lives
Michigan trust law is in the Michigan Compiled Laws sections 700.7101 et seq., part of the Estates and Protected Individuals Code (EPIC). It took effect in 2010. Michigan's asset protection trust provisions are at MCL sections 700.1041 through 700.1050.
Accounting and notice requirements
Michigan requires trustees to notify qualified beneficiaries within 63 days of accepting trusteeship and within 63 days of a trust becoming irrevocable, under MCL section 700.7814(2)(b) and (c). Michigan chose 63 days (nine calendar weeks) rather than the UTC default of 60.
The critical Michigan difference is in accounting. Under MCL section 700.7814(3), the trustee's duty to provide annual accounting to qualified beneficiaries is mandatory and cannot be waived by the trust creator for beneficiaries who know about the trust. This is one of the strictest accounting positions in the country. In contrast, neighboring Ohio allows a beneficiary surrogate to receive information instead.
However, since February 21, 2024, Michigan allows silent trusts under MCL section 700.7409a. If the trust instrument includes a nondisclosure provision, the trustee's notice and reporting duties shift to a designated surrogate rather than the beneficiaries directly. The nondisclosure period is capped at 25 years. This gives Michigan a framework similar to — but more structured than — Illinois's silent trusts for beneficiaries under 30.
The accounting must include all trust transactions, asset values, trustee compensation, and how income and principal were allocated. If you're a Michigan trustee, build this into your annual calendar. There's no getting around it.
Trustee duties
Michigan follows the standard UTC duties: good faith administration, loyalty, impartiality, and prudent investing. Diversification is required under the prudent investor framework. The trustee can delegate investment management to qualified professionals.
Trustee compensation
Michigan uses the "reasonable under the circumstances" standard. No statutory fee schedule exists. Professional trustees typically charge 0.5% to 1.5% of trust assets annually. The court can adjust compensation if duties differ from what was contemplated.
Statute of limitations
Michigan has a dual-track statute of limitations for breach-of-trust claims under MCL section 700.7905. If the trustee provided an adequate report disclosing the relevant facts, a beneficiary has 1 year from receiving that report to bring a claim. Without adequate disclosure, the absolute bar is 5 years from the trustee's resignation, removal, or any other event that terminates the trustee's authority. Michigan's structure is shorter and more trustee-protective than the UTC default.
What makes Michigan different
Non-waivable annual accounting with a silent-trust exception. Michigan's annual accounting requirement under MCL section 700.7814(3) cannot be waived in the trust document. However, since 2024, trusts with a silent trust provision under MCL section 700.7409a can redirect reporting duties to a designated surrogate instead of directly to beneficiaries. Outside of silent trusts, every trustee must account annually to qualified beneficiaries.
360-year trust duration for personal property. Under MCL section 554.93, trusts holding personal property (investments, cash, business interests) can last up to 360 years. Real property trusts are more limited. This makes Michigan competitive for dynasty trust planning, though not as aggressive as Ohio's unlimited duration.
Domestic Asset Protection Trusts. Michigan allows self-settled asset protection trusts under MCL sections 700.1041 through 700.1050. The state strengthened these provisions in 2022 by harmonizing with the Uniform Voidable Transactions Act. There's a waiting period before protection becomes effective.
No state estate tax. Michigan has no state estate tax, which combined with DAPT capability and long trust duration makes it attractive for wealth preservation.
Competitive positioning with Ohio. Michigan and Ohio are both actively competing for trust business, offering similar features (DAPTs, long duration, no estate tax, directed trusts). The main differentiator is Michigan's stricter accounting rules versus Ohio's beneficiary surrogate flexibility.
TrustHelm tip: TrustHelm automatically generates your annual accounting in the format Michigan requires, including all transactions, asset values, and compensation details. The platform reminds you when the accounting is due so you never miss the non-waivable deadline.
The most common Michigan trust mistakes
Assuming the trust document can override the accounting requirement. It can't. Even if your trust says "no accounting required," Michigan law demands it. Trustees who rely on waiver language are exposed to liability.
Not funding the trust. The universal mistake. A trust that doesn't hold assets doesn't avoid probate.
Overlooking the 360-year limit on personal property. If your trust holds both real estate and investments, different duration rules may apply. Make sure your attorney has addressed this.
Missing the 63-day notice window. Michigan gives you 63 days (not the UTC default of 60) to notify qualified beneficiaries after accepting trusteeship or after the trust becomes irrevocable. Easy to miss during the emotional period after a death.
When to talk to an attorney
You should consult a Michigan trust attorney if you need to understand what your annual accounting must include, you're considering a DAPT, you're moving a trust to or from Michigan (especially from a state with different accounting rules like Ohio), or you're a successor trustee taking over after a death.
For finding a qualified estate planning attorney in your area, visit TrustHelm's Find an Attorney directory.
This guide is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for decisions about your trust.