Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Probate Trusts topic
No spam. Unsubscribe anytime.
Committee adopts substitute and hears technical case for Unitrust Act and perpetuities fixes
Summary
The House Judiciary Committee adopted a substitute to House Bill 4034 and heard sponsor and technical testimony on HB 4033 (Unitrust Act) and HB 4034 (perpetuities technical fixes), with proponents saying the bills modernize trustee rules without forcing trustees to change practices.
The House Judiciary Committee adopted substitute H‑1 to House Bill 4034 and heard testimony on two related probate measures aimed at modernizing trustee law.
Representative Wozniak introduced House Bill 4033, the Unitrust Act, and House Bill 4034, described as technical fixes related to the statutory rule against perpetuities. "Both bills were introduced last term and have overwhelming support," Wozniak said during his opening remarks.
Following the sponsor’s introduction, the committee took a roll‑call vote to adopt substitute H‑1 to House Bill 4034. The clerk reported "9 ayes, 0 nays," and the substitute was adopted.
James Spica, former chair of the Probate and Estate Planning Section and a Uniform Law Commissioner, gave the committee a technical explanation. He said the Unitrust Act would let trustees elect unitrust treatment—distributions based on the value of trust assets rather than income—so trustees using total‑return investing can reconcile modern investment strategies with older trust instruments. "The act will allow a trustee who is energetic enough in seeking economic returns for beneficiaries to elect to treat the trust as a unit trust," Spica said, adding that adoption would bring Michigan into alignment with roughly 36 other states that have some form of unitrust statute.
Spica also described House Bill 4034 as technical corrections to the uniform statutory rule against perpetuities and explained how it interacts with Michigan’s Personal Property Trusts Perpetuities Act. He emphasized the changes are optional and "specifically provides that a trustee is not under a duty to use the unitrust act or to consider doing so."
Committee members asked for further explanation of the rule against perpetuities; Representative Breen requested a lay explanation but the sponsor said time did not permit a full doctrinal review. No final committee action beyond the substitute adoption was recorded during the hearing.
The committee is expected to consider further action on these bills at a later date.
