Rep Kesto lays groundwork for needed provisions within trust law

first_img Categories: Kesto News,News 15Oct Rep. Kesto lays groundwork for needed provisions within trust law A proposal from state Rep. Klint Kesto providing clear and concise updates addressing state trust laws was recently approved by the House Law and Justice Committee.Trusts are created to hold, manage and distribute property – such as estate planning to distribute assets to beneficiaries. Kesto’s bill, House Bill 6129, amends the Michigan Trust Code to create separate trustee provisions, duties and liabilities within an aggregate trust. The trustees are not created as co-trustees in their relations with one another under the plan and fall into three categories: separate investment trustee, separate distribution trustee and separate resultant trustee.“In light of current problems within some form of trusts, we needed an update to laws to properly and effectively allocate fiduciary power,” said Kesto, of Commerce Township. “This is a simple, needed framework outlining the relationship between trust director and trustee.”Companion legislation puts the Michigan Trust Code in line with a policy approved by the American Bar Association to handle intricate aspects of directed trusts, which have become increasingly common in contemporary estate planning. Those plans go beyond current rules and provide solutions to problems such as communication between trustees and trust directors, and succession, compensation, and removal of a trust director.HB 6129 and the rest of the legislation within the multi-bill plan moves to the full House for consideration.last_img read more

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