MI SB0978

Authorizes trustees of irrevocable trusts with discretionary provisions to distribute trust property to a second trust without court approval, provided the second trust does not materially change beneficiaries' beneficial interests and maintains tax planning intent.

Requires trustees to provide written notice to settlors and qualified beneficiaries at least 63 days before exercising the distribution power, with ability to waive the notice period in writing.

Prohibits the distribution from increasing trustee compensation, charging transfer fees, reducing trustee care standards, or diminishing authority of persons with fiduciary power over the trustee without written consent of all beneficiaries entitled to reports.

Adds definitions of key trust-related terms including "discretionary trust provision," "qualified trust beneficiary," "trust protector," and "ascertainable standard" to clarify trust law.

Effective immediately upon Governor's approval on December 26, 2012.