Michigan Trust Administration

Reviewed by Kelly M. Neumann, a Michigan-admitted attorney who handles the firm’s estate planning matters. Last updated July 28, 2026.

Being named a trustee is a serious responsibility, and most people who take it on are grieving family members who have never done it before. Our attorneys at Neumann Law Group guide Michigan trustees through trust administration, part of the firm’s broader Michigan estate planning practice, so the trust is carried out correctly and the trustee is protected from the personal liability the role can carry. Much of this work is orderly rather than adversarial, and knowing the sequence and the deadlines in advance takes the pressure off. Trust administration is the private counterpart to court probate, and for families whose plans are not yet in place, our attorneys build the trusts that make this smoother path possible.

What Is Trust Administration and When Does It Begin?

Trust administration is the set of tasks a trustee performs to fulfill a trust once it becomes operative, most often at the death of the settlor, the person who created it. During the settlor’s life a revocable living trust is administered by the settlor for the settlor’s own benefit, and little formal work is required. When the settlor dies, a revocable trust becomes irrevocable, the named successor trustee steps in, and the real administration begins.

The defining advantage of the process is that it usually happens without court supervision. Assets that were properly transferred into the trust during the settlor’s life, meaning the trust was funded, pass under the trust document rather than through probate. The successor trustee has authority to act as soon as they accept the role, without waiting for a court appointment. That is the private, out-of-court settlement most people had in mind when they set up the trust, and it is the main contrast with the will-based process that runs through the probate court.

What Duties Does a Michigan Trustee Owe?

The Michigan Trust Code sets the standards a trustee must meet. Under MCL 700.7801, a trustee who accepts a trusteeship must administer the trust in good faith, expeditiously, in accordance with its terms and purposes, and for the benefit of the beneficiaries. The duty of loyalty in MCL 700.7802 requires the trustee to administer the trust solely in the interests of the beneficiaries, which bars self-dealing except in narrow, authorized circumstances such as court approval or the informed consent of the beneficiaries. These duties are not aspirational. A trustee who violates them can be removed by the court, surcharged, and held personally responsible for the losses the breach causes the trust and its beneficiaries.

Beyond good faith and loyalty, a Michigan trustee owes duties of impartiality among beneficiaries, prudence in managing and investing trust assets, and care in keeping trust property separate from the trustee’s own. The trustee also has an ongoing duty to communicate. Under MCL 700.7814, the trustee must keep the qualified trust beneficiaries reasonably informed about the administration and, importantly, must within 63 days after accepting the trusteeship or after a revocable trust becomes irrevocable notify those beneficiaries of the trust’s existence and of their right to request a copy of the trust and information about its administration. The same section requires the trustee to send beneficiaries a report of trust property, liabilities, receipts, and disbursements at least annually and at the trust’s termination.

What Are the Steps in Administering a Michigan Trust?

Administration follows a recognizable sequence, even though the details vary with the trust. The successor trustee first locates and reviews the trust document to confirm their authority and understand the distribution terms, then formally accepts the role. Early on, the trustee sends the MCL 700.7814 notice to the qualified beneficiaries and secures the trust assets, obtaining date-of-death values for real estate, accounts, and investments and retitling assets into the trustee’s name as trustee where needed.

From there the trustee handles the trust’s obligations before distributing to beneficiaries. That means identifying and paying the settlor’s legitimate debts and final expenses, addressing any tax filings, including the settlor’s final income tax return and, for larger estates, federal estate tax, and keeping careful records of every receipt and disbursement. Once obligations are resolved, the trustee distributes the trust property according to its terms, whether outright, in shares, or by funding continuing subtrusts for children or other beneficiaries, and provides a final accounting.

A trustee acting alone carries real personal exposure, and a short consultation can head off the mistakes that cause it. Neumann Law Group offers a free consultation, and our estate planning attorneys guide trustees through administration across Grand Traverse County and the Northern Michigan region.

The Records Trust Administration Turns On

Trust administration is a documentary process, and a trustee’s protection lies in the records. The foundational document is the trust instrument itself, including any amendments, which defines the trustee’s powers and the beneficiaries’ shares. From there the trustee builds a file that proves each step: the death certificate, the date-of-death valuations and account statements supporting the inventory, the notices sent under MCL 700.7814 and proof they were delivered, records of every debt paid and its legitimacy, tax filings, and the accountings shared with beneficiaries.

These records do more than organize the work. A trustee can be called to account by a beneficiary, so a complete and accurate record is the trustee’s defense against a claim that the trust was mishandled. A trustee who documents every decision and distribution, and who reports to beneficiaries as the Trust Code requires, is in a far stronger position than one who administered the trust informally and cannot later show what was done or why. Obtaining a signed receipt and release from a beneficiary at final distribution is part of closing the administration cleanly.

How Neumann Law Group Guides Trustees

Our estate planning attorneys represent both trustees and beneficiaries in Michigan trust administration, and for trustees our role is to make sure the trust is carried out correctly and the trustee is shielded from avoidable liability. We review the trust with the trustee so they understand their authority and their obligations, calendar the MCL 700.7814 notice and the reporting duties so nothing is missed, and help with the valuation, tax coordination, and accounting that trip up trustees acting alone. Where distributions are complex or a beneficiary is difficult, we help the trustee act within the trust’s terms rather than react to pressure.

When a dispute arises, over an accounting, an alleged breach of duty, or the meaning of the trust’s terms, we represent trustees defending their administration and beneficiaries questioning it. Since we draft trusts as well as administer them, we understand how these documents are meant to work and where they commonly go wrong. From our Traverse City office we serve trustees and families throughout the Grand Traverse region, and the firm can meet with clients where they are when travel is difficult.

What to Do if You Have Been Named a Trustee

Locate the original trust document and all amendments, and read them before taking any action, because your authority and your instructions come from that document. Secure the trust property right away, including any home or cottage, and keep insurance in force. Order several certified copies of the death certificate. Open a trust account and keep trust funds strictly separate from your own money, since commingling is one of the fastest ways a trustee gets into trouble.

Do not distribute anything to beneficiaries before debts, expenses, and taxes are accounted for, because a premature distribution can leave you personally exposed if an obligation surfaces later. Do not skip the beneficiary notice, and keep proof of everything you send and every dollar you handle. The duties are real and the exposure is personal, so a trustee facing anything beyond the simplest trust is well served by having an attorney confirm the steps before acting.

Neumann Law Group offers a free consultation to Michigan trustees and beneficiaries dealing with a trust after a loved one’s death. Our estate planning attorneys help trustees meet their duties and deadlines, protect them from personal liability, and represent beneficiaries who need answers, and we can meet with clients where they are when travel is a burden. Call (800) 525-6386 or reach us through our contact page to talk through the administration ahead.

Frequently Asked Questions About Trust Administration

What Is Trust Administration in Michigan?

Trust administration is the process a trustee follows to carry out a trust after the person who created it dies or becomes incapacitated. Under the Michigan Trust Code, the trustee gathers and values the trust assets, notifies beneficiaries, pays debts and taxes, and distributes the property according to the trust’s terms, generally without court supervision.

Does a Trust Have to Go Through Probate in Michigan?

No. Assets properly held in a funded trust pass under the trust document rather than through probate, which is a central reason people create trusts. Administration still requires real work by the trustee, but it happens privately and out of court, avoiding the public probate file and much of its delay.

What Are a Michigan Trustee’s Duties?

A Michigan trustee must administer the trust in good faith and in accordance with its terms under MCL 700.7801, act solely in the interests of the beneficiaries under the duty of loyalty in MCL 700.7802, and keep beneficiaries reasonably informed and provide reports under MCL 700.7814. A trustee who breaches these duties can be held personally liable.

Do Beneficiaries Have to Be Notified of a Trust?

Yes. Under MCL 700.7814, within 63 days after accepting the trusteeship or after a revocable trust becomes irrevocable, usually at the settlor’s death, the trustee must notify the qualified trust beneficiaries of the trust’s existence and of their right to request information. The trustee must also report on the trust at least annually.

How Long Does Trust Administration Take in Michigan?

A straightforward trust often takes several months to a year to administer, depending on how quickly assets can be valued, debts and taxes resolved, and distributions made. Trusts holding a business, real estate in several states, or hard-to-value property, and trusts with disputes among beneficiaries, take longer.

Related Estate Planning Services

• Adult guardianship and conservatorship may be needed when a person becomes incapacitated without a trust or agent in place.
• Durable power of attorney governs a person’s affairs during life, before a trust ever becomes irrevocable.
• Alzheimer’s and dementia planning combines trust planning with the incapacity documents a progressive diagnosis calls for.
• Asset protection planning addresses shielding assets through trusts and other structures.