MI HB6130

Adds section 7703a to Michigan's trust law establishing rules for powers of direction granted to trust directors, including provisions for fiduciary duties, liability standards, and information-sharing requirements between trustees and directors.

Classifies certain powers (appointments, unitrust conversions, trust modifications, asset distributions) as nonfiduciary when granted to non-trustees, allowing exercise without fiduciary constraints unless bad faith or fraud is involved.

Requires trust directors to comply with the same fiduciary standards as trustees in comparable positions, with limits on liability waivers that would protect against bad faith, reckless indifference, or abuse of confidential relationships.

Establishes that trustees and trust directors are not required to monitor each other or second-guess decisions, but must provide information reasonably related to their respective powers and duties; protects reliance on such information if made in good faith.

Applies retroactively to pre-existing trusts only for decisions or actions taken after the effective date, and conditions the law's effectiveness on simultaneous enactment of HB 6129 and HB 6131.