Trusts are widely used in planning for the succession of ownership of family businesses. In June 2009, the Michigan State Legislature passed and Gov. Jennifer Granholm signed Michigan’s first comprehensive statute for the creation, modification, administration and termination of trusts. The Michigan Trust Code takes effect April 1, 2010, and affects all existing trusts as well as newly created trusts. Based on the Uniform Trust Code, which was proposed in 2000 and enacted in some form by 22 other states, the Michigan Trust Code preserves much of the existing statutory and common trust law in Michigan. Because of the widespread use of trusts in planning for family businesses, families will need to consider the impact of the MTC on their family businesses. |