What Does Fiduciary Mean in a Will? Michigan's Rules, Roles and Responsibilities Explained
If someone named you as an executor or trustee in their will, you may have heard the word “fiduciary” thrown around without a clear explanation of what it actually means for you. And if you are creating your own estate plan, understanding who your fiduciaries are and what they are legally required to do is just as important as deciding who gets what.
In Michigan, fiduciary is not just a title. It is a legal standard, and it comes with serious obligations that courts take seriously.
What Does Fiduciary Mean in Simple Terms
A fiduciary is someone who is legally and ethically required to act in another person’s best interest, not their own. The moment someone accepts a fiduciary role, whether as a trustee, executor, or power of attorney agent, they are bound by law to put the interests of the people they serve above everything else, including their own financial gain or personal preferences.
In everyday language, it means the person you appoint to manage your estate, your trust, or your finances cannot use that position to benefit themselves. They have to be loyal, careful, and transparent in everything they do on your behalf.
In Michigan, this standard is not just an ethical expectation. It is written into state law under the Estates and Protected Individuals Code, commonly referred to as EPIC, and courts have consistently held fiduciaries to one of the highest standards of care recognized in law. You can read the full text of EPIC at the Michigan Legislature website.
The Fiduciary Duty Rule in Michigan
The fiduciary duty rule is the legal framework that governs how fiduciaries must behave. In Michigan, this duty has three core pillars that apply across all fiduciary roles.
Duty of Loyalty.
The fiduciary must act solely in the interest of the beneficiaries. They cannot engage in self dealing, meaning they cannot use estate or trust assets for their own benefit, make decisions that favor themselves over beneficiaries, or put themselves in a position where their personal interests conflict with their fiduciary obligations.
Duty of Care.
The fiduciary must manage assets and make decisions with the level of skill and diligence that a reasonably prudent person would use under similar circumstances. In Michigan, trustees are specifically held to the prudent investor standard under MCL 700.7901, which means investment decisions must be made carefully, diversified appropriately, and reviewed regularly.
Duty of Impartiality.
When there are multiple beneficiaries, the fiduciary must treat them fairly and balance their competing interests. A trustee cannot favor one beneficiary over another without clear legal justification.
Violating any of these duties is not just a moral failure in Michigan. It can result in personal liability, removal from the role, and court ordered repayment of any losses caused to the estate or trust.
Who Are the Fiduciaries in a Michigan Estate Plan
Most Michigan estate plans involve more than one fiduciary, each serving a distinct role. Here is who they are and what they are responsible for.
Personal Representative (Executor).
This is the person named in your will to manage your estate after you pass away. They handle everything from filing the will with the Michigan probate court to paying debts and distributing assets to your beneficiaries. In Michigan, the personal representative has a fiduciary duty to the estate’s devisees under EPIC.
Trustee.
If you have a revocable living trust or any other type of trust, the trustee is the person responsible for managing the assets held in that trust according to its terms. Their fiduciary obligations are among the most detailed and ongoing of any role in estate planning.
Durable Power of Attorney Agent.
This person manages your financial and legal decisions if you become incapacitated during your lifetime. In Michigan, a durable power of attorney must be signed before two witnesses and a notary to be valid, and the agent named carries a full fiduciary duty to act in your best financial interest.
Patient Advocate.
Named in your Patient Advocate Designation, this person makes healthcare decisions on your behalf if you cannot make them yourself. They are also bound by fiduciary standards and must act according to your known wishes and best interests.
Each of these roles carries its own specific obligations, but all of them share the same foundational requirement: put the person you serve first, always
Fiduciary vs Executor: What Is the Difference
This is one of the most common points of confusion in estate planning, and it is worth clearing up directly.
An executor is a fiduciary. But not every fiduciary is an executor.
Fiduciary is the broader term that describes anyone who holds a legal duty of loyalty and care toward another person in the context of managing their affairs or assets. An executor, or personal representative in Michigan, is one specific type of fiduciary whose authority is tied to the will and the probate process.
The key difference comes down to scope and duration. An executor’s job begins at death and ends when the estate is fully administered and the probate court closes the case. Their authority is limited to carrying out the terms of the will and the requirements of Michigan probate law. Once the assets are distributed and the final accounting is approved, the executor’s role is done.
A trustee, on the other hand, may serve for years or even decades after the estate is settled. If a trust is set up to manage assets for a minor child until they turn 25, the trustee carries ongoing fiduciary responsibilities for that entire period. Their obligations to account, invest prudently, and act impartially do not end at probate.
This is one of the most common points of confusion in estate planning, and it is worth clearing up directly.
An executor is a fiduciary. But not every fiduciary is an executor.
Fiduciary is the broader term that describes anyone who holds a legal duty of loyalty and care toward another person in the context of managing their affairs or assets. An executor, or personal representative in Michigan, is one specific type of fiduciary whose authority is tied to the will and the probate process.
The key difference comes down to scope and duration. An executor’s job begins at death and ends when the estate is fully administered and the probate court closes the case. Their authority is limited to carrying out the terms of the will and the requirements of Michigan probate law. Once the assets are distributed and the final accounting is approved, the executor’s role is done.
A trustee, on the other hand, may serve for years or even decades after the estate is settled. If a trust is set up to manage assets for a minor child until they turn 25, the trustee carries ongoing fiduciary responsibilities for that entire period. Their obligations to account, invest prudently, and act impartially do not end at probate.
So when someone asks whether they should name the same person as both their executor and their trustee, the answer depends on whether that person has the capacity and commitment to handle not just a one time administrative process but potentially a long term management role as well.
Does a Trustee Have a Fiduciary Duty in Michigan
Yes, and it is one of the strictest fiduciary standards in the law.
Under Michigan EPIC, specifically MCL 700.7814, a trustee is required to administer the trust solely in the interests of the beneficiaries. This is not a general guideline. It is a statutory obligation with real legal consequences for violations.
In practice, trustee fiduciary responsibility in Michigan includes the following:
Prudent Investment. Under the Michigan Prudent Investor Rule (MCL 700.7901), trustees must invest trust assets as a prudent investor would, considering the purposes and circumstances of the trust. They cannot make reckless or speculative investments, and they must diversify assets unless there is a clear reason not to.
Annual Accountings. Trustees in Michigan are required to provide beneficiaries with regular accountings of trust assets, income, distributions, and expenses. Failing to account is one of the most common grounds for a breach of fiduciary duty claim.
No Self Dealing. A trustee cannot buy trust assets for themselves, loan trust money to themselves, or enter into any transaction that benefits them personally at the expense of the trust or its beneficiaries.
Impartial Treatment. When a trust has both current beneficiaries receiving income and remainder beneficiaries who will eventually receive the principal, the trustee must balance the interests of both groups fairly.
Loyalty to the Trust’s Purpose. Every decision the trustee makes must align with the goals laid out in the trust document, not their own preferences or opinions about what the beneficiaries deserve.
If a trustee in Michigan fails to meet any of these obligations, beneficiaries have the right to petition the Michigan probate court for an accounting, for removal of the trustee, and for damages.
Getting Fiduciary Decisions Right the First Time Matters
Michigan estate planning is not something you want to figure out after something goes wrong. Whether you are naming a trustee for a revocable living trust, appointing a personal representative in your will, or setting up a durable power of attorney, every fiduciary role you create comes with real legal weight behind it.
The wrong choice can mean family conflict, financial losses, court intervention, and a legacy that looks nothing like what you intended. The right choice, backed by a properly drafted estate plan, means your family is protected, your wishes are carried out, and the people you trust are set up to succeed in the roles you give them.
At The People’s Firm, we help Michigan families make these decisions with clarity and confidence. From identifying the right fiduciaries for your specific situation to making sure every document is properly executed under Michigan law, we handle the details so nothing falls through the cracks.
If you are ready to put a plan in place or have questions about an existing estate plan, reach out to us today.
Dearborn Office: +1 (313) 355-0100 Lansing Office: +1 (517) 336-0100
Or visit us online at thepeoplesfirmpllc.com to schedule your consultation.
