Successor Trustees and a Limited Power to Convey Real Estate (Michigan)

By Matthew A. Quick Pursuant to Land Title Standard 8.5 of Michigan, "If an express trust contains a power of sale which is not limited to the named trustee, a successor trustee may convey real property pursuant to the trust terms. If a trust does not contain a power of sale or contains a power of sale limited to the named trustee, the probate court may enter an order removing any trust provision limiting the successor trustee's power of sale, thereby permitting the successor trustee to convey real property pursuant to the court's order." The authority for this Land Title Standard is derived from MCL 700.1302, 700.7201 and 700.7402.

In cases where a general, thus unlimited, power to convey real property exists pursuant to a non-testamentary trust declaration, and a successor trustee is appointed by the court, the appointed successor trustee receives the power to convey real property without particular order of the court. However, in the event the power to convey real property is limited to the named trustee in the trust declaration, the court must order that the appointed successor trustee has the power to convey real property. This rule does not apply to situations involving a testamentary trust, because the probate court has jurisdiction to appoint successor trustees after a sole, or other successor trustee, is removed. MCL 700.7201 and 700.1302.