Special Needs Trust - Michigan
MICHIGAN THIRD-PARTY SPECIAL NEEDS TRUST
This trust is established by [SETTLOR FULL LEGAL NAME] of [ADDRESS] (the Settlor) for [BENEFICIARY FULL LEGAL NAME] (the Beneficiary). [INITIAL TRUSTEE FULL LEGAL NAME] of [ADDRESS] accepts the property described in Schedule A as Trustee.
1. Creation and purpose
The Settlor now transfers the property in Schedule A to the Trustee. The Trustee accepts it to hold and administer under this document. This trust is irrevocable. The Settlor and Beneficiary may not withdraw trust property or direct distributions.
The Settlor intends this to be a third-party trust funded only with property that has never belonged to the Beneficiary or the Beneficiary's spouse. Its purpose is to provide discretionary supplemental support for the Beneficiary. This document does not promise eligibility for any public benefit.
2. Property and additional contributions
The Trustee shall hold the initial property and any later contributions in a separate trust account. The Trustee may accept later gifts from other people only after confirming that the property did not belong to the Beneficiary or the Beneficiary's spouse. The Trustee shall reject or segregate any proposed contribution whose ownership is uncertain and obtain qualified advice before using it.
The Trustee shall keep records identifying each contribution, its source, income, expenses, and distributions. No property is added merely by listing it here; each later contribution must actually be delivered or transferred.
3. Distributions during the Beneficiary's life
The Trustee may distribute income or principal for goods, services, and activities the Trustee considers beneficial to the Beneficiary, including care, education, transportation, equipment, recreation, and personal needs. The Trustee may pay providers directly or purchase goods for the Beneficiary. The Trustee may also choose to make no distribution. No person may compel a distribution under this document.
Before a distribution that could affect means-tested benefits, the Trustee shall examine the Beneficiary's current program rules and circumstances and may consult a benefits professional. The Trustee may still make a distribution despite an adverse benefit effect if the Trustee decides that meeting the Beneficiary's actual need is more important. The Trustee shall record that decision.
The Trustee shall not make a gift to the Trustee or use trust property for the Trustee's personal benefit, except for proper expense reimbursement or compensation under Section 4.
4. Trustee management
The Trustee may hold, invest, sell, lease, or insure trust property; open accounts in the trust's name; collect income; pay trust expenses and taxes; hire appropriate professionals; and sign documents needed for trust administration. The Trustee shall act for the purposes of this trust, keep trust property separate from personal property, and maintain accurate records.
Within 63 days after accepting the trusteeship, the Trustee shall notify the qualified trust beneficiaries of the acceptance and the Trustee's contact information. Within 63 days after learning of this irrevocable trust's creation, the Trustee shall give the qualified trust beneficiaries the existence, settlor-identity, registration-court (if any), and terms-request notices required by MCL 700.7814(2), subject to its statutory exceptions.
At least annually and on termination, the Trustee shall send the Beneficiary, as a permissible distributee, a report of trust property, liabilities, receipts, disbursements, and Trustee compensation, with a property listing, feasible market values, and any disclosure required under MCL 700.7802(5). The Trustee shall also send that report to any other qualified or nonqualified trust beneficiary who requests it, as required by MCL 700.7814(3). A person legally authorized to receive information for the Beneficiary may receive the report on the Beneficiary's behalf. The Trustee may also send a copy to the Settlor while living. The Trustee may withhold personal details from a person who is not entitled to them.
The Trustee may be reimbursed for reasonable expenses of administration and may receive reasonable compensation documented in the trust records. This document does not excuse a breach of trust or limit liability to the value of the trust property.
5. Successor trustees
If the initial Trustee cannot or will not serve, [FIRST SUCCESSOR FULL LEGAL NAME] shall serve. If that person cannot or will not serve, [SECOND SUCCESSOR FULL LEGAL NAME] shall serve. A successor shall accept by signing a written acceptance and shall receive the trust property and records from the outgoing Trustee. A resigning Trustee shall give written notice to the Settlor, if living, and to the next successor.
If none of the named people can serve, an interested person may seek appointment of a replacement trustee from a court with authority over the trust. The trust continues while a replacement is being selected.
6. Beneficiary's interest
The Beneficiary has no power to sell, assign, pledge, or direct payment of a trust interest. To the extent permitted by applicable law, a creditor may not reach an undistributed trust interest. This provision does not limit any right a person has under controlling law.
7. Ending the trust and distributing the remainder
This trust ends at the Beneficiary's death. The Trustee shall first pay proper trust administration expenses and liabilities, then distribute all remaining property to [PRIMARY REMAINDER BENEFICIARY FULL LEGAL NAME], if that person survives the Beneficiary. If no primary remainder beneficiary is named or survives, the remainder goes to the Settlor if living, otherwise to the Settlor's estate.
The Trustee shall make a final record of the property received, expenses paid, and remainder delivered. Property that belonged to the Beneficiary or the Beneficiary's spouse must not be treated as an ordinary third-party trust contribution; if any such property is discovered, the Trustee shall segregate it and obtain legal direction about its disposition.
8. Governing terms
Michigan law governs this trust. If a provision cannot be given effect, the remaining provisions continue to the extent they can serve the Settlor's stated purpose. Any change to this irrevocable trust requires the authority and procedure supplied by applicable law; no person has a unilateral amendment power under this document.
9. Signatures
The Settlor signs to establish and fund this trust. The Trustee signs to accept the property and trusteeship.
Settlor signature: [________________________________] Date: [__/__/____]
Printed name: [SETTLOR FULL LEGAL NAME]
Trustee signature: [________________________________] Date: [__/__/____]
Printed name: [INITIAL TRUSTEE FULL LEGAL NAME]
Acknowledgment
State of Michigan, County of [COUNTY].
On [__/__/____], [SETTLOR FULL LEGAL NAME] and [INITIAL TRUSTEE FULL LEGAL NAME] personally appeared before me and acknowledged signing this instrument.
Notary public signature: [________________________________]
Printed name: [NOTARY NAME]
Commission expiration: [__/__/____]
Schedule A — Initial funding and receipt
The Settlor transfers $10 in cash to the Trustee upon signing. The Trustee acknowledges receipt by signing below. Any additional property requires a separate completed transfer record.
Additional property transferred now, if any: [DESCRIBE PROPERTY, TRANSFER METHOD, AND VALUE, OR WRITE "NONE"]
Trustee receipt signature: [________________________________] Date: [__/__/____]
About this template
- Last updated
- November 2, 2026
- Jurisdiction
- Michigan
- Category
- Estate Planning & Wills
Legal authority
- MCL 700.7814(2)-(3) (Trustee notices and beneficiary reports)
Estate planning documents decide what happens to your property, your children, and your medical care when you cannot make those decisions yourself. Wills, trusts, powers of attorney, and health care directives each serve different purposes and each have to meet state law requirements for signing, witnessing, and notarization. A document that looks fine on the page but was not executed correctly can be rejected in probate, which is exactly when it is too late to fix.
Not legal advice
This template is provided for informational purposes. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.
Checked against the law it cites
The statutes this template relies on are listed under Legal authority.
Michigan Probate Benchbook § 5.15 (MCL 700.7814(2)) (checked November 1, 2026): "(2) within 63 days of accepting a trusteeship, notify the qualified trust beneficiaries of the acceptance, the court in which the trust is registered if it is registered, and the trustee’s name, address, and telephone number; and (3) subject to certain exceptions, within 63 days after the trustee learns of the creation of an irrevocable trust or the date the trustee learns that a formerly revocable trust has become irrevocable, notify the qualified trust beneficiaries of the trust’s existence, the identity of the settlor(s), the court in which the trust is registered if it is registered, and the right to request a copy of the terms of the trust that describe or affect the trust beneficiary’s interest."
Michigan Probate Benchbook § 5.15 (MCL 700.7814(3)) (checked November 2, 2026): "If the trust document is silent regarding the duty to inform and report to beneficiaries, the default rule of the MTC requires the trustee to send to distributees, to permissible distributees, and to other qualified or nonqualified trust beneficiaries who request it, at least annually and at the termination of the trust, a report of the trust property, liabilities, receipts, and disbursements, including the source and amount of the trustee’s compensation; a listing of the trust property and the market values, if feasible; and any disclosure required under MCL 700.7802(5)."
SSA POMS SI 01120.200 (third-party trust definition) (checked October 29, 2026): "A third-party trust is a trust established with the assets of someone other than the trust beneficiary (or their spouse)."
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