The proposed "Unitrust Act" establishes a comprehensive legal framework for the administration of trusts in Michigan, focusing on the conversion of income trusts to unitrusts and the calculation of unitrust amounts. It defines essential terms such as "unitrust," "income beneficiary," and "trustee," while outlining the conditions under which a trustee may convert an income trust to a unitrust or alter the calculation method for unitrust amounts. The act prioritizes the terms of a trust over its provisions unless explicitly stated otherwise and includes guidelines for notifying beneficiaries about proposed actions and the exercise of discretionary powers by trustees.

Key provisions of the act include the requirement for a unitrust policy that specifies the unitrust rate, which must be set between 3% and 5% for trusts eligible for special tax benefits. The act mandates detailed methods for determining the fair market value of trust assets, including the frequency and specific dates for valuation, and allows for various assessment methods such as appraisals and adjustments based on market data. Additionally, the bill emphasizes alignment with the Uniform Fiduciary Income and Principal Act and modifies certain provisions of the Electronic Signatures in Global and National Commerce Act. Overall, the act aims to enhance clarity and flexibility in trust administration while safeguarding the interests of beneficiaries.