The phone call comes, and everything changes. A parent, spouse, or loved one has passed away — and somewhere in the grief, you learn that you’ve been named successor trustee of their revocable living trust.

Most people don’t fully grasp what that means until they’re already in it. Being named successor trustee isn’t an honorary title. It’s a legal obligation — and it starts the moment the trust creator (called the “settlor” in Michigan) dies. At that point, the revocable trust becomes irrevocable, and you become personally responsible for managing, protecting, and distributing assets according to its terms.

Michigan’s Trust Code, codified under MCL 700.7101 et seq., imposes specific duties on successor trustees — duties that carry real consequences if you get them wrong. Miss a notice deadline, distribute assets too early, or fail to account for creditor claims, and you could face personal liability out of your own pocket.

This guide breaks down exactly what Michigan successor trustees need to do in the first 90 days of trust administration, with specific timelines, statute references, and a practical checklist to keep you on track. Whether the trust holds a family home in Troy, investment accounts across Southeast Michigan, or retirement assets statewide, the clock starts now.

Day 1–14: Secure the Trust Documents and Protect Trust Assets

Your first priority is protection — of the documents and the assets. Every day you wait increases the risk that something gets lost, damaged, or mishandled.

Locate and Review Critical Documents

Within the first two weeks, gather the following:

• Original trust agreement and all amendments
• Pour-over will (directs any non-trust assets into the trust at death)
• Death certificates — order at least 10 certified copies (you’ll need them for banks, investment firms, insurance companies, real estate transactions, and government agencies)
• Prior estate planning documents including powers of attorney, patient advocate designations, and beneficiary designation forms
• Financial records — bank statements, investment account statements, tax returns, insurance policies, and real estate deeds

Secure Physical Assets Immediately

If the settlor owned real property, visit the property. Change locks if appropriate, especially if the home will be unoccupied. Review homeowner’s insurance to confirm coverage remains active — many policies have vacancy clauses that can void coverage after 30 to 60 days of the home sitting empty.

Safeguard valuables, important papers, and any items of significant monetary or sentimental value. If there’s a safe deposit box, determine who has access and whether the trust or your appointment as trustee gives you authority to open it.

Many Michigan families don’t realize that trust assets are vulnerable during the gap between the settlor’s death and the trustee taking control. A home left vacant without updated insurance, a brokerage account left unmonitored, or financial records left unsecured can create problems that compound quickly.

Day 1–30: Formally Accept Trusteeship and Notify Beneficiaries

Accept Your Role as Trustee

Accepting trusteeship isn’t automatic. Review the trust document for any specific acceptance procedures. In most cases, your actions — gathering documents, securing assets, communicating with beneficiaries — constitute acceptance. Some trustees formalize this with a written acceptance of trusteeship and a certification of trust (sometimes called an affidavit of trust), which banks and financial institutions will require before granting you access to accounts.

Under MCL 700.7302, a trustee who accepts the role takes on fiduciary duties including loyalty, impartiality, and prudent administration. These aren’t suggestions — they’re enforceable legal obligations.

The 63-Day Beneficiary Notification Rule

Here’s where many successor trustees stumble. Under Michigan’s Trust Code, once you accept trusteeship of an irrevocable trust, you must notify all qualified beneficiaries within 63 days. This notification must include:

• The existence of the trust
• Your name and contact information as trustee
• The beneficiary’s right to request a copy of the trust terms and other information

This isn’t optional. Failure to comply can expose you to legal challenges from beneficiaries and undermine your authority as trustee. In our experience serving families across Macomb County, Oakland County, and Wayne County, this is one of the most commonly missed deadlines — and one of the most consequential.

When a beneficiary requests a copy of the trust terms, you’re required to provide it. Beyond that, communicate proactively. A brief, plain-language letter explaining the trust’s general structure, your role, and the anticipated timeline for administration can prevent misunderstandings and reduce the likelihood of disputes.

Day 1–45: Obtain an EIN and Open Dedicated Trust Accounts

Why the Trust Needs Its Own Tax ID

When a revocable trust becomes irrevocable at the settlor’s death, it becomes a separate taxable entity. It can no longer operate under the deceased settlor’s Social Security number. You need to apply for an Employer Identification Number (EIN) from the IRS — which you can do online at irs.gov and receive immediately.

Open Trust-Specific Bank and Brokerage Accounts

Once you have the EIN, open a dedicated checking account in the trust’s name. If the trust holds investment assets, you’ll likely need a trust brokerage account as well.

Never commingle trust funds with your personal accounts. This is one of the fastest ways to create personal liability exposure and invite beneficiary challenges. Every dollar that moves through the trust should be traceable through the trust’s own accounts.

Transfer liquid assets from the decedent’s personal accounts into the trust account as appropriate — but coordinate with the financial institutions first, as each will have its own process and documentation requirements. Expect to provide the death certificate, trust certification, and your EIN at minimum.

Day 1–60: Inventory Trust Assets and Address Creditor Claims

Build a Complete Asset Inventory

A thorough inventory is the foundation of competent trust administration. Document every trust asset with current values:

• Real estate — residential, commercial, and vacant land
• Bank and brokerage accounts — checking, savings, CDs, investment portfolios
• Retirement accounts — IRAs and 401(k)s payable to the trust (note: these have unique tax implications)
• Business interests — LLCs, partnerships, closely held corporations
• Life insurance — policies payable to the trust vs. named beneficiaries
• Personal property — vehicles, jewelry, art, collectibles, and other tangible assets

Arrange Professional Appraisals

For real estate, closely held businesses, and valuable personal property, obtain date-of-death appraisals. These establish the fair market value for tax reporting and for equitable distribution among beneficiaries. Don’t rely on estimates — formal appraisals from qualified professionals protect you if valuations are later disputed.

Handle Creditor Claims

If the trust is subject to creditor claims, Michigan law provides a process. Under MCL 700.7608, a trustee may publish and serve notice to creditors — paralleling the probate creditor notice process. This starts a clock on the creditor claims period, after which known and unknown creditors who fail to file timely claims may be barred.

“Distributing trust assets before the creditor claims period expires is one of the most dangerous mistakes a successor trustee can make. If a legitimate creditor surfaces after you’ve already distributed assets, you — personally — may be on the hook.”

Day 1–90: Tax Filing Obligations and Ongoing Reporting

Coordinate with a CPA Early

Tax obligations don’t wait for you to get comfortable in your role. Within the first 90 days, coordinate with a qualified CPA on:

• Decedent’s final Form 1040 — covering income from January 1 through the date of death
• Federal estate tax return (Form 706) — required if the gross estate exceeds the federal estate tax exemption, which is currently $15 million per individual (or $30 million for married couples) under the One Big Beautiful Bill Act signed into law on July 4, 2025. Michigan does not impose a separate state estate tax.
• Fiduciary income tax return (Form 1041) — for income earned by the trust after the settlor’s death, if the trust generates income above applicable thresholds
• Michigan fiduciary income tax return — Michigan taxes trust income, and the filing requirements depend on the trust’s Michigan-sourced income

Set Up Trust Accounting

Michigan law requires trustees to provide annual accountings to qualified beneficiaries. Set up a bookkeeping system from day one — tracking every receipt, disbursement, investment gain, loss, and expense. Proper accounting protects you from breach-of-duty claims and provides the transparency beneficiaries are entitled to under the Michigan Trust Code.

“In our experience, the trustees who face the fewest disputes are the ones who document everything from the start. Retroactively reconstructing records months later is expensive, stressful, and often incomplete.”

When Trust Administration Goes Wrong: A Metro Detroit Example

Consider this scenario: A Macomb County resident is named successor trustee of her father’s revocable trust. The trust holds a home in Shelby Township, two investment accounts, and an IRA. Overwhelmed by grief and family obligations, she delays action for several weeks.

She doesn’t send the 63-day beneficiary notices. Under pressure from a sibling, she distributes a portion of one investment account early — before completing the asset inventory. Three months later, a creditor files a claim against the trust for an unpaid medical bill totaling $47,000.

Because she distributed assets prematurely without following the creditor notice process under MCL 700.7608, she faces personal liability for the claim. The sibling who received the early distribution isn’t required to return it. The other beneficiaries challenge her administration, citing the missed notices and lack of accounting.

This isn’t hypothetical — it’s the pattern we see when successor trustees try to handle administration without guidance. What could have been a straightforward process becomes an expensive, adversarial, and emotionally draining ordeal.

Practical Checklist: Your First 90 Days as Michigan Successor Trustee

Days 1–14:

• Locate the original trust agreement, amendments, and pour-over will
• Order at least 10 certified death certificates
• Secure all real property — review insurance, change locks if needed
• Safeguard valuables, financial records, and important documents

Days 1–30:

• Formally accept trusteeship
• Notify all qualified beneficiaries within 63 days of acceptance
• Prepare a certification of trust for financial institutions
• Communicate your administration timeline to beneficiaries in plain language

Days 1–45:

• Apply for an EIN from the IRS
• Open dedicated trust bank and/or brokerage accounts
• Begin transferring liquid assets from decedent’s personal accounts

Days 1–60:

• Complete a comprehensive asset inventory
• Arrange date-of-death appraisals for real estate, businesses, and valuables
• Publish and serve notice to creditors if applicable under MCL 700.7608
• Do not distribute assets until the creditor claims period closes

Days 1–90:

• Coordinate with a CPA on the decedent’s final Form 1040
• Determine Form 706 (estate tax) and Form 1041 (fiduciary income tax) obligations
• Set up trust accounting and bookkeeping systems
• Provide annual accounting framework to qualified beneficiaries

Frequently Asked Questions About Michigan Trust Administration

What happens if I miss the 63-day beneficiary notification deadline?

Failure to notify qualified beneficiaries within 63 days of accepting trusteeship doesn’t automatically remove you as trustee, but it creates significant legal exposure. Beneficiaries may petition the court to compel compliance, seek removal, or challenge your administration decisions. The notice requirement exists under Michigan’s Trust Code, and courts take it seriously — especially when a trustee’s delay causes harm or uncertainty for beneficiaries.

Can I distribute trust assets before all creditor claims are resolved?

Distributing before the creditor claims period expires is one of the most dangerous things a successor trustee can do. Under MCL 700.7608, if you distribute assets and a valid creditor claim later surfaces, you may be held personally liable for the amount distributed. Wait until the claims period closes and all known claims are resolved before making distributions.

Do I need a lawyer to administer a trust in Michigan?

Michigan law doesn’t require a trustee to hire an attorney, but the legal, tax, and fiduciary obligations involved make professional guidance strongly advisable — especially for trusts holding real estate, business interests, or retirement accounts. Trust administration legal work is generally billed hourly, with Michigan attorneys typically charging $250 to $500 per hour depending on the attorney’s experience, the trust estate’s complexity, and the scope of work involved. Total costs vary based on the number of beneficiaries, whether assets need to be retitled or sold, tax filing requirements, and whether disputes arise. For straightforward administrations, costs stay manageable — but contested matters or estates with business interests, real estate complications, or beneficiary conflicts can increase fees substantially. Trust administration guidance can help you avoid mistakes that cost far more than the legal fees involved.

How long does Michigan trust administration take?

Most Michigan trust administrations take six months to over a year to complete, depending on the complexity of the trust assets, whether creditor claims are involved, and the level of cooperation among beneficiaries. The first 90 days are the most critical for establishing the administrative foundation. Simple trusts with liquid assets and cooperative beneficiaries may move faster, while trusts involving real estate sales, business valuations, or disputes take significantly longer.

Does a trust avoid probate in Michigan?

Yes — one of the primary benefits of a properly funded revocable living trust is probate avoidance. Assets held in the trust at death pass directly to beneficiaries through the trust administration process, without going through Michigan probate court. However, any assets left outside the trust may still require probate. This is why a pour-over will is an essential companion document — it catches assets that weren’t transferred into the trust during the settlor’s lifetime.

What are the tax obligations for a Michigan successor trustee?

A successor trustee is responsible for ensuring all required tax returns are filed, including the decedent’s final individual return (Form 1040), any required federal estate tax return (Form 706), and the trust’s fiduciary income tax return (Form 1041) along with applicable Michigan fiduciary returns. The current federal estate tax exemption is $15 million per individual under the One Big Beautiful Bill Act. Failing to file timely returns can result in penalties, interest, and personal liability for the trustee. Work with a CPA experienced in trust and estate taxation.

Can a successor trustee be held personally liable?

Yes. Under Michigan’s Trust Code, a trustee who breaches fiduciary duties — including duties of loyalty, impartiality, and prudent administration — can be held personally liable for losses to the trust and its beneficiaries. Common triggers include premature distributions, commingling funds, failing to notify beneficiaries, and inadequate record-keeping. Personal liability means your own assets are at risk, not just the trust’s.

Protect Yourself and Honor the Trust: Talk to a Michigan Trust Administration Attorney

Serving as successor trustee is an act of trust — but it’s also a legal responsibility with real deadlines, real duties, and real consequences for getting it wrong. The first 90 days set the tone for the entire administration. Getting them right protects both the trust’s beneficiaries and you personally.

At Boroja, Bernier & Associates, we guide successor trustees through every phase of Michigan trust administration — from securing assets and meeting notification deadlines to navigating creditor claims and tax filings. Our attorneys help families throughout Macomb County, Oakland County, Wayne County, and across Southeast Michigan and Mid-Michigan, with our main office in Shelby Township and satellite offices in Troy, Ann Arbor, and Lansing.

To schedule a consultation with the Michigan trust administration attorneys at Boroja, Bernier & Associates, call our law offices at (586) 991-7611. The sooner you get the right guidance, the more confidently you can fulfill your role — and the better you protect yourself and the people who are counting on you.