WHEN TRUST ADMINISTRATION DOESN’T GO ACCORDING TO PLAN
Many families create a Revocable Living Trust believing it will eliminate problems after they are gone. While trusts often avoid probate administration, they do not eliminate disagreements. In fact, some of the most difficult family disputes arise during trust administration because beneficiaries have questions about how a trustee is managing assets, interpreting the trust, or making distributions.
For example, imagine three siblings are beneficiaries of their mother’s trust. One child is serving as trustee. Months pass after their mother’s death, but the trustee refuses to explain what assets are in the trust, whether the cottage has been sold, or when distributions will occur. The other beneficiaries begin to wonder whether the trustee is simply overwhelmed, or whether something is wrong.
Michigan law gives both trustees and beneficiaries important legal rights and responsibilities. Trustees are expected to administer the trust according to its terms, act in the best interests of the beneficiaries, protect trust assets, and provide required information. Beneficiaries, in turn, have the right to receive certain information and, when appropriate, ask the Probate Court to resolve disputes regarding trust administration.
Not every disagreement requires litigation. Many trust disputes can be resolved through communication, clarification of the trust document, or negotiation before a court hearing ever becomes necessary. When litigation is required, however, our attorneys represent both trustees and beneficiaries in matters involving trust interpretation, trust amendments, beneficiary rights, trustee conduct, distributions, and judicial instructions.
At Great Lakes Family Probate & Estates, we understand that trust litigation is rarely just about money. More often, it involves preserving family relationships while ensuring that the wishes of the person who created the trust are honored. Our attorneys help clients evaluate potential claims and determine whether litigation is appropriate. If you would like to contact Great Lakes Family Probate & Estates, you can contact us at (888) 554-5373 or submit a form to schedule a consultation.