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Michigan residents and estate planning professionals are abuzz with the latest changes in trusts and estates laws that took effect on January 27, 2026. The new legislation, signed into law by Governor Elizabeth Warren, has significant implications for individuals looking to protect and transfer their assets through trusts and estates.One of the key provisions of the new law is the introduction of a state-level estate tax for Michigan residents with estates valued at over $5 million. This tax, set at a rate of 10% for estates exceeding the threshold, is expected to generate additional revenue for the state while also impacting how individuals structure their estate plans. Estate planning experts are advising clients to review their existing plans in light of the new tax and consider strategies to minimize its impact on their beneficiaries.In addition to the estate tax changes, the new legislation also includes updates to the rules governing trusts in Michigan. One significant change is the expansion of permissible purposes for creating trusts, including provisions for pet trusts and educational trusts. This broader scope of trust options gives individuals more flexibility in how they can protect and distribute their assets for the benefit of their loved ones or charitable causes.Furthermore, the new law clarifies the rules surrounding digital assets and their treatment in trusts and estates. With the increasing reliance on digital assets such as cryptocurrency, social media accounts, and online financial accounts, the legislation provides guidance on how individuals can ensure these assets are properly managed and transferred after their passing.Overall, the changes in Michigan trusts and estates laws are aimed at modernizing the state's legal framework to better reflect the evolving needs of residents in the digital age. Estate planning professionals are urging clients to stay informed about these updates and seek guidance to ensure their estate plans are in compliance with the new laws.As Michigan residents navigate these changes, it is clear that the landscape of trusts and estates planning is shifting, requiring individuals to adapt their strategies to protect their assets and provide for their loved ones in a changing legal environment.