Michigan Laws 700.7111 – Nonjudicial settlement agreement
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Terms Used In Michigan Laws 700.7111
- Court: means the probate court or, when applicable, the family division of circuit court. See Michigan Laws 700.1103
- Person: means an individual or an organization. See Michigan Laws 700.1106
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Settlement: means , in reference to a decedent's estate, the full process of administration, distribution, and closing. See Michigan Laws 700.1107
- terms of the trust: means the manifestation of the settlor's intent regarding a trust's provisions as expressed in the trust instrument or as may be established by other evidence that would be admissible in a judicial proceeding. See Michigan Laws 700.1107
- Trust: includes , but is not limited to, an express trust, private or charitable, with additions to the trust, wherever and however created. See Michigan Laws 700.1107
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional, or successor trustee, whether or not appointed or confirmed by the court. See Michigan Laws 700.1107
(1) Except as otherwise provided in subsection (2), interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust.
(2) A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the court under this article or other applicable law. A nonjudicial settlement agreement shall not be used to accomplish the termination or modification of the trust.
(3) Matters that may be resolved by a nonjudicial settlement agreement include any of the following:
(a) The interpretation or construction of the terms of the trust.
(b) The approval of a trustee‘s report or accounting.
(c) Direction to a trustee to perform or to refrain from performing a particular act or to grant to or to withhold from a trustee any power.
(d) The resignation or appointment of a trustee and the determination of a trustee’s compensation.
(e) Transfer of a trust’s principal place of administration.
(f) Liability of a trustee for an action relating to the trust.
(4) Any interested person or trustee may request the court to approve or disapprove a nonjudicial settlement agreement. On a determination that the representation as provided in part 3 was adequate, that the agreement does not violate a material purpose of the trust, and that the agreement contains terms and conditions the court could have properly approved, the court shall enter an order approving the agreement.
(5) As used in this section, “interested persons” means persons whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court.