You are on page 1of 4

Taking into consideration that Michigan does not have an “equity court”, and because the

government feels compelled to control everything, your trust must state the jurisdiction that
controls it, and at the same time, address the laws that the legislature has created to pierce the
trust vail, if you don`t, in my opinion, you open yourself up for them to take control of your trust.
This includes foreign trusts.

Specifying jurisdiction and creating obstacles that prevent the courts from ascertaining control is
essential, for it keeps the court from acquiring personal jurisdiction, which is a requirement that
the U.S. Supreme Court looks for. If a lower court fails to acquire personal jurisdiction, they
lose the ability to control or pierce your trust vail.

Here are just some of the ways they are attempting to acquire personal jurisdiction.

ESTATES AND PROTECTED INDIVIDUALS CODE (EXCERPT)


Act 386 of 1998

700.7101 Short title of article.


This article shall be known and may be cited as the "Michigan trust code".
History: 1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010

700.7201 Role of court in administration of trust.


(1) A court of this state may intervene in the administration of a trust to the extent its
jurisdiction is invoked by an interested person or as provided by law.

NOTE: Does not specify which laws, who an interested person is, or by what authority, other
than self-granted authority.

700.7202 Jurisdiction over trustee and beneficiaries.


(1) By registering a trust or accepting the trusteeship of a registered trust or a trust having its
principal place of administration in this state or by moving the principal place of administration
to this state, the trustee submits personally to the jurisdiction of the courts of this state regarding
any matter involving the trust.

700.7203 Subject matter jurisdiction.


(1) The court has exclusive jurisdiction of proceedings in this state brought by a trustee or
beneficiary that concern the administration of a trust as provided in section 1302(b) and (d).

NOTE: Your trust must specify that only a court of equity has jurisdiction.

700.7211 Registration; qualification of foreign trustee.


A foreign corporate trustee is required to qualify as a foreign corporation doing business in this
state if it maintains a trust's principal place of administration in this state. A foreign cotrustee is
not required to qualify in this state solely because its cotrustee maintains the principal place of
administration in this state. Unless otherwise doing business in this state, local qualification by a
foreign trustee, corporate or individual, is not required for the trustee to receive distribution from
a local estate, to hold, invest in, manage, or acquire property located in this state, or to maintain
litigation. This section does not affect a determination of what other acts require qualification as
doing business in this state.

700.7403 Trusts created in other jurisdictions.


A trust not created by will is validly created if its creation complies with the law of the
jurisdiction in which the trust instrument was executed or the law of a jurisdiction to which, at
the time of creation, any of the following applied:
(a) The settlor was domiciled, had a place of abode, or was a national in the jurisdiction.
(b) A trustee was domiciled or had a place of business in the jurisdiction.
(c) Any trust property was located in the jurisdiction.

700.7404 Trust purposes.


A trust may be created only to the extent its purposes are lawful, not contrary to public policy,
and possible to achieve.

NOTE: Why would any trust need to comply with public policy.

700.7412 Modification or termination of trust; unanticipated circumstances or inability to


administer effectively.
(1) The court may modify the administrative terms of a trust if continuation of the trust on its
existing terms would be impracticable or wasteful or impair the trust's administration.
(2) The court may modify the administrative or dispositive terms of a trust or terminate the trust
if, because of circumstances not anticipated by the settlor, modification or termination will
further the settlor's stated purpose or, if there is no stated purpose, the settlor's probable intention.

NOTE: The court is exercising its own self-appointed authority, which it does not have.

700.7105 Duties and powers of trustee; provisions of law prevailing over terms of trust.
(1) Except as otherwise provided in the terms of the trust, this article governs the duties and
powers of a trustee, relations among trustees, and the rights and interests of a trust beneficiary.
(2) The terms of a trust prevail over any provision of this article except the following:

(c) The requirement under section 7404 that the trust have a purpose that is lawful, not contrary
to public policy, and possible to achieve.

(g) The power of the court under section 7708(2) to adjust a trustee's compensation specified
in the terms of the trust that is unreasonably low or high.

(o) The power of the court to take action and exercise jurisdiction.

You might also like