Sec. 7402.
(1) A trust is created only if all of the following apply:
(a) The settlor has capacity to create a trust.
(b) The settlor indicates an intention to create the trust.
(c) The trust has a definite beneficiary or is either of the following:
(i) A charitable trust.
(ii) A trust for a noncharitable purpose or for the care of an animal, as provided in section 2722.
(d) The trustee has duties to perform.
(e) The same person is not the sole trustee and sole beneficiary.
(2) A trust beneficiary is definite if the trust beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
(3) A power in a trustee to select a trust beneficiary from an indefinite class is valid only in a charitable trust.
History: 1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010 Popular Name: EPIC
Structure Michigan Compiled Laws
Chapter 700 - Estates and Protected Individuals Code
Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206)
Article VII - Michigan Trust Code (700.7101...700.7913)
Section 700.7401 - Creating Trust; Methods.
Section 700.7402 - Creating Trust; Requirements.
Section 700.7403 - Trusts Created in Other Jurisdictions.
Section 700.7404 - Trust Purposes.
Section 700.7405 - Charitable Trusts; Purposes; Enforcement.
Section 700.7406 - Creation of Trust Induced by Fraud, Duress, or Undue Influence.
Section 700.7407 - Evidence of Oral Trust.
Section 700.7408, 700.7409 - Repealed. 2009, Act 46, Eff. Apr. 1, 2010.
Section 700.7410 - Modification or Termination of Trust; Procedures for Approval or Disapproval.
Section 700.7415 - Reformation to Correct Mistakes.
Section 700.7416 - Modification to Achieve Settlor's Tax Objectives; Retroactive Effect.