State Rep. Doug Wozniak yesterday secured unanimous House approval for two probate reform bills that will improve clarity, consistency, and flexibility in Michigan trust law.

House Bills 4408 and 4523 make targeted updates to state law to better guide trustees, beneficiaries, and probate courts in the administration of trusts, particularly in more complex cases.

“I’m grateful my colleagues on both sides of the aisle recognized the value of these commonsense improvements,” said Wozniak (R-Shelby Township). “These bills provide greater clarity for families, trustees, attorneys, and the courts while ensuring Michigan’s trust laws keep pace with modern estate planning. Better laws lead to fewer disputes, more predictable outcomes, and greater confidence for everyone involved.”

HB 4523 amends the Estates and Protected Individuals Code (EPIC), which governs the duties and powers of a trustee, and the rights and interests of a trust beneficiary. The bill addresses when the terms of the trust override the provisions of the EPIC statute. Under the bill, the terms of the trust prevail, except for a specific list of items or situations. The bill adds to that list “The power of the court to appoint a person to enforce” certain types of trusts. Therefore, under this bill, the trust document cannot limit the normal powers of the probate court.

HB 4408 amends the Powers of Appointment Act of 1967. Under current law, a trustee with the power to make distributions of income or principal of an irrevocable trust may exercise the power by appointing all or part of the trust property in favor of the trustee of a second trust, if certain conditions are satisfied. The bill clarifies that the second trust instrument may provide a power of appointment to 1 or more beneficiaries of the second trust, so that they could appoint trust property to persons who are not beneficiaries of the first trust. The bill also clarifies that a trust created by the exercise of a power of appointment is created when the power has been irrevocably exercised, or when a revocable exercise become irrevocable.

The legislation was developed with input from probate and estate planning attorneys, who have indicated the changes will be helpful when complex estates and trusts are litigated in the probate court.

The bills now advance to the Senate for consideration.