MI HB4033

Allows trustees to convert income trusts to unitrusts (where distributions are calculated as a percentage of trust value rather than actual income), convert unitrusts back to income trusts, or change the percentage/method used to calculate unitrust amounts

Requires trustees to provide at least 30 days' written notice to qualified beneficiaries and other interested parties before making any conversion, with the opportunity for recipients to object

Establishes unitrust rate limits of 3% to 5% for trusts qualifying for special tax benefits (such as marital deductions or gift tax exclusions) or trusts without an independent trustee

Protects trustees from liability when acting in good faith under the act, and specifies courts may only overturn trustee decisions if they constitute an abuse of discretion

Requires unitrust policies to specify the method for determining fair market value of assets, the period for calculations (calendar year, quarter, or other timeframe), and rules for handling distributions