Sometimes an important court decision isn’t about changing the law. It’s about reminding us how the law works in real life.

A recent Michigan Court of Appeals case, Ecker v. Nickel, offers several valuable lessons for families serving as trustees. While the case involved a procedural issue in probate court, it also highlights what can happen when a trustee stops following the terms of the trust and instead follows what they believe the person “would have wanted.”

The result was years of litigation, damaged family relationships, and significant financial consequences.

Why This Matters

The case began after a father passed away, leaving a trust for his four children.

One daughter became trustee. She continued living in the family home without paying rent, treated an unsigned trust amendment as though it was valid, failed to provide information to the other beneficiaries, and did not keep proper records of the trust’s administration.

Eventually, two of her siblings asked the probate court to remove her as trustee.

One issue on appeal involved procedure. The lawsuit had been started by filing a complaint instead of a petition. The trustee argued that because the wrong type of pleading had been filed, the probate court never had jurisdiction to hear the case.

The Michigan Court of Appeals disagreed.

The court explained that using the wrong procedure did not take away the probate court’s authority to decide the case. Because the court already had jurisdiction over trust matters, filing the wrong type of pleading was simply a procedural mistake—not a jurisdictional one. Since the trustee had notice of the case and chose not to respond, the error did not change the outcome.

More importantly, the court agreed that the trustee had committed serious breaches of her duties.

A trustee has one primary job: follow the terms of the trust and act in the best interests of all beneficiaries.

That means keeping accurate records, sharing information when required, avoiding conflicts of interest, and treating all beneficiaries fairly.

Good intentions are not enough.

One of the most important lessons from this case is that a trustee cannot rewrite a trust based on what they believe the creator intended if the written trust says something different. Once a trust becomes irrevocable (on the death of the trust creator), it can only be changed in limited circumstances and through the procedures allowed by Michigan law.

The court also upheld reducing the trustee’s compensation, denying much of her request for attorney fees, requiring her to pay rent for her exclusive use of trust property, and awarding some attorney fees to the beneficiaries because their efforts protected the trust.

Simple Lesson

Serving as trustee is an honor, but it’s also a serious legal responsibility. Following the trust exactly as written—and asking for guidance when questions arise—can prevent costly disputes and protect family relationships.

Action Step

If you’ve been named as a trustee, don’t assume you have to figure everything out on your own. Before making major decisions or interpreting unclear language, meet with an experienced estate planning attorney. A little guidance early can prevent expensive problems later.

Questions about serving as a trustee or reviewing your estate plan? You can call our office at (517) 548-7400 or connect with us through our website. We are always happy to help.