The proposed "unitrust act" seeks to enhance the management of trusts by granting fiduciaries the authority to convert income trusts into unitrusts and vice versa, as well as to modify the calculation methods for unitrust amounts. The bill introduces new definitions related to trusts, such as "applicable value," "express unitrust," and "income trust," and establishes the conditions under which these conversions and modifications can occur. It emphasizes that the terms of a trust will prevail unless explicitly stated otherwise and outlines the responsibilities of trustees, including the requirement to notify qualified beneficiaries of proposed actions.

Additionally, the bill provides legal protections for trustees acting in good faith, ensuring they are not held liable for the consequences of their actions. It includes provisions for court oversight of trustees' discretionary decisions, which can only be challenged if deemed an abuse of discretion. The act also details the management and distribution of assets within a unitrust policy, including guidelines for asset valuation and treatment of accrued income and liabilities. By allowing flexibility in asset valuation periods and distribution methods, the bill aims to modernize trust management practices in Michigan while promoting uniformity in trust law across states.