Sec. 7401.
(1) A trust may be created by any of the following:
(a) Transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect upon the settlor's death.
(b) Declaration by the owner of property that the owner holds identifiable property as trustee.
(c) Exercise of a power of appointment in favor of a trustee.
(d) Exercise of a power described in section 7820a.
(e) A promise by 1 person to another person, whose rights under the promise are to be held in trust for a third person.
(2) The instrument establishing the terms of a trust is not rendered invalid because property or an interest in property is not transferred to the trustee or made subject to the terms of the trust concurrently with the signing of the instrument. Until property or an interest in property is transferred to the trustee or made subject to the terms of the trust, the person nominated as trustee has no fiduciary or other obligations under the instrument establishing the terms of the trust except as may have been specifically agreed by the settlor and the nominated trustee.
History: 1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2005, Act 204, Imd. Eff. Nov. 10, 2005 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010 ;-- Am. 2012, Act 483, Imd. Eff. Dec. 28, 2012
Popular Name: EPIC
Last modified: October 10, 2016