Bill Text: MI HB5398 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Probate; trusts; use of a certificate of trust under the estates and protected individuals code for a trust that affects real property; allow. Amends title & secs. 1 & 5 of 1991 PA 133 (MCL 565.431 & 565.435) & repeals secs. 2, 3, 4 & 6 of 1991 PA 133 (MCL 565.432 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-12-28 - Assigned Pa 492'18 With Immediate Effect [HB5398 Detail]
Download: Michigan-2017-HB5398-Engrossed.html
HB-5398, As Passed House, November 29, 2018
SUBSTITUTE FOR
HOUSE BILL NO. 5398
A bill to amend 1991 PA 133, entitled
"An act to allow the use and recording of certain documents
regarding trusts in the case of real property that is conveyed or
otherwise affected by a trust; and to prescribe their effect,"
by amending sections 1, 4, and 5 (MCL 565.431, 565.434, and
565.435), section 4 as amended by 2018 PA 194; and to repeal acts
and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. An instrument conveying, encumbering, that conveys,
encumbers,
or otherwise affecting an interest
in affects real
property, executed pursuant to an express trust, may be accompanied
either
by a either of the following:
(a)
A copy of the each operative trust agreement or by a
instrument. As used in this subdivision, "trust instrument" means
that term as defined in section 7103 of the estates and protected
individuals code, 1998 PA 386, MCL 700.7103.
(b)
A certificate of trust existence and
authority, as
described
in sections 2 and 3.under
section 7913 of the estates and
protected individuals code, 1998 PA 386, MCL 700.7913, that
includes the legal description of the affected real property.
Sec.
4. A trust agreement instrument
or certificate of trust
existence
and authority under section
7913 of the estates and
protected individuals code, 1998 PA 386, MCL 700.7913, that
accompanies an instrument as described in section 1, and any
amendments
to or revocations of the trust agreement instrument or
the
certificate of trust existence and authority, under section
7913 of the estates and protected individuals code, 1998 PA 386,
MCL 700.7913, may be recorded in the office of the register of
deeds of each county where the lands that are the subject of or
affected
by the trust agreement instrument
are located. If a trust
agreement
instrument or certificate of
trust under section 7913 of
the estates and protected individuals code, 1998 PA 386, MCL
700.7913, accompanies an instrument as described in section 1, the
trust
agreement instrument or
certificate of trust under section
7913 of the estates and protected individuals code, 1998 PA 386,
MCL 700.7913, must be recorded as a separate document. As used in
this section, "trust instrument" means that term as defined in
section 7103 of the estates and protected individuals code, 1998 PA
386, MCL 700.7103.
Sec.
5. A purchaser or other party relying upon on the
information
contained included in a recorded certificate of trust
existence
and authority shall be afforded under
section 7913 of the
estates and protected individuals code, 1998 PA 386, MCL 700.7913,
has the same protection as is provided to a subsequent purchaser in
good
faith under section 29 of chapter 65 of the Revised Statutes
of
1846, being section 565.29 of the Michigan Compiled Laws, and
shall
1846 RS 65, MCL 565.29. A
purchaser or other party described
in
this section is not be required
to further examine the trust
agreement,
instrument, unless an instrument amending or revoking
the
trust agreement instrument
or certificate of trust existence
and
authority under section 7913
of the estates and protected
individuals code, 1998 PA 386, MCL 700.7913, is recorded in the
same
office in which the trust agreement instrument or certificate
of
trust existence and authority under
section 7913 of the estates
and protected individuals code, 1998 PA 386, MCL 700.7913, was
previously recorded. As used in this section, "trust instrument"
means that term as defined in section 7103 of the estates and
protected individuals code, 1998 PA 386, MCL 700.7103.
Enacting section 1. Sections 2, 3, and 6 of 1991 PA 133, MCL
565.432, 565.433, and 565.436, are repealed.
