"
since the trust was created in California and the rental income was California do I not need to do a Michigan...?"
It appears as if you would be required to file a California return but, most likely, do not need to file a Michigan return (see page 2 at the link below).
Frankly, I would contact the Michigan Department of Treasury to make absolutely certain (517-636-4486).
MI --> http://www.michigan.gov/documents/taxes/MI1041_Book_609426_7.pdf
