What is a construction trust?
A construction trust is a type of trust used in Michigan to protect the interests of both landowners and developers in a construction project. A construction trust is most commonly used when a project involves multiple parties, including a landowner, developer, contractor, subcontractors, and others. When a construction trust is used, the landowner or developer deposits money into the trust for use in the project. The funds in the trust can only be used for the construction project and are held in trust for the benefit of all parties involved. The trust also helps protect the parties from any potential legal issues that may arise from the project. By having the funds in trust, all parties can be assured that their interests are being protected and that the project is being completed in the most efficient and cost-effective manner. In Michigan, a construction trust is governed by Michigan inheritance law and is overseen by a trustee appointed by the parties. The trust allows the parties to agree on the terms and conditions of the project, and the trust funds are managed and distributed to the beneficiaries upon completion.
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