Michigan Irrevocable Trust Questions

[cousinmose]

What is the name of your state? Michigan

Relative passed away in 2019 and assigned me as a beneficiary to a portion of the irrevocable trust assets. I received a copy of the trust document some months ago and have sent the requested information back to trustee with receipt confirmation from trustee attorney.

1) I spoke with trustee's attorney weeks ago and asked for details on my portion of trust distribution. Attorney would not provide that information. Is that information within my right to know as a beneficiary?
2) There were no properties to sell, only investment and banking accounts. What is time limit in Michigan for completing distributions to beneficiaries? Trustee attorney was retained early 4Q of 2019.
3) Are trust distributions required to be made at same time to all beneficiaries? Or, is that based on discretion of trustee?

Thank you.

 

[Taxing Matters]

What is the name of your state? Michigan

Relative passed away in 2019 and assigned me as a beneficiary to a portion of the irrevocable trust assets. I received a copy of the trust document some months ago and have sent the requested information back to trustee with receipt confirmation from trustee attorney.

1) I spoke with trustee's attorney weeks ago and asked for details on my portion of trust distribution. Attorney would not provide that information. Is that information within my right to know as a beneficiary?
2) There were no properties to sell, only investment and banking accounts. What is time limit in Michigan for completing distributions to beneficiaries? Trustee attorney was retained early 4Q of 2019.
3) Are trust distributions required to be made at same time to all beneficiaries? Or, is that based on discretion of trustee?

Thank you.

1. You already received the trust instrument, and the trust instrument spells out how and when distributions are to be made. As for what other information you are entitled to get, see MCL § 700.7814. If you are looking for the attorney to tell you the exact date and amount of the distribution, he and the trustee may not yet know that. Note that it is the trustee, not the attorney, who has the obligation to provide you the information specified in the statute.

2. The timing of the distribution is determined by the terms of the trust instrument.

3. Again, the timing of distributions to beneficiaries is determined by the terms of the trust instrument. The instrument may give the trustee latitude on the time of each distribution to beneficiaries.

You will probably need to take the trust copy you have an attorney of your own to get specific answers about what to expect from the trust.

 

[zddoodah]

Relative passed away in 2019 and assigned me as a beneficiary to a portion of the irrevocable trust assets.

Stated differently for clarity: Some relative of yours created a trust. That trust either began as an irrevocable trust or became irrevocable upon his/her death. You are a beneficiary of the trust. Correct?

Also, is it the case both that you live in Michigan and your deceased relative lives in Michigan? If both are not true, please let us know which is not true.

I spoke with trustee's attorney weeks ago and asked for details on my portion of trust distribution. Attorney would not provide that information. Is that information within my right to know as a beneficiary?

That depends on what information you requested. Also, are you saying that the attorney affirmatively refused to provide the information? Or are you saying that the attorney simply hasn't responded? Also, how long ago did you make this request?

There were no properties to sell, only investment and banking accounts. What is time limit in Michigan for completing distributions to beneficiaries?

There is none.

Are trust distributions required to be made at same time to all beneficiaries? Or, is that based on discretion of trustee?

There is no requirement that all distributions be made at the same time, although that is commonly how it is done.

the trust instrument spells out how and when distributions are to be made. . . .

2. The timing of the distribution is determined by the terms of the trust instrument.

I disagree that the timing of distributions is necessarily dictated or determined by the terms of the trust instrument. A trust instrument might spell out the timing of distributions. However, that's not always the case, in which case, the timing will be dictated by the administration of the trust estate, including liquidation of any non-liquid assets, ascertaining and payment of debt, including taxes, and whether or not the administration is court supervised.

 

[Zigner]

I disagree that the timing of distributions is necessarily dictated or determined by the terms of the trust instrument. A trust instrument might spell out the timing of distributions. However, that's not always the case, in which case, the timing will be dictated by the administration of the trust estate, including liquidation of any non-liquid assets, ascertaining and payment of debt, including taxes, and whether or not the administration is court supervised.

You start out by saying that you disagree, but then you go on to agree, albeit stated differently.

 

[Taxing Matters]

I disagree that the timing of distributions is necessarily dictated or determined by the terms of the trust instrument. A trust instrument might spell out the timing of distributions. However, that's not always the case, in which case, the timing will be dictated by the administration of the trust estate, including liquidation of any non-liquid assets, ascertaining and payment of debt, including taxes, and whether or not the administration is court supervised.

It is not always the case that the trust explicitly states the timing of the distribution. But whether or not it does informs one of what rules are going to apply to the distribution. The point, which I guess you missed, is that the OP needs to review the trust document to see what, if anything, it says on the matter. I can't tell the OP what the timing will be without having read that document.

 

[cousinmose]

Stated differently for clarity: Some relative of yours created a trust. That trust either began as an irrevocable trust or became irrevocable upon his/her death. You are a beneficiary of the trust.

Correct? Yes, this is correct. Trust was set up as revocable until time of passing, which then became irrevocable.

Also, is it the case both that you live in Michigan and your deceased relative lives in Michigan? If both are not true, please let us know which is not true.

Deceased relative was lifelong resident of Michigan, but lived in Florida at time of death.

That depends on what information you requested. Also, are you saying that the attorney affirmatively refused to provide the information? Or are you saying that the attorney simply hasn't responded? Also, how long ago did you make this request?

Spoke with attorney by phone and attorney refused/would not share the amount of my distribution with me. An accounting of trust assets or even my portion have not been provided. In another reply, Taxing matters indicated that I must request from Trustee, not Trustee's attorney.

There is none.

There is no requirement that all distributions be made at the same time, although that is commonly how it is done.

I disagree that the timing of distributions is necessarily dictated or determined by the terms of the trust instrument. A trust instrument might spell out the timing of distributions. However, that's not always the case, in which case, the timing will be dictated by the administration of the trust estate, including liquidation of any non-liquid assets, ascertaining and payment of debt, including taxes, and whether or not the administration is court supervised.

I have read the Trust document and do not see a specific timeline for distribution.

 

[cousinmose]

To summarize responses so far to my original questions:

1) I spoke with trustee's attorney weeks ago and asked for details on my portion of trust distribution. Attorney would not provide that information. Is that information within my right to know as a beneficiary?

Attorney does not have to provide me the distribution amount information. Trustee must/should provide upon request?

2) There were no properties to sell, only investment and banking accounts. What is time limit in Michigan for completing distributions to beneficiaries? Trustee attorney was retained early 4Q of 2019.

There is no time limit on distribution of assets to beneficiaries in Michigan.

3) Are trust distributions required to be made at same time to all beneficiaries? Or, is that based on discretion of trustee?

It's at the discretion of the trustee as to distribution timing of assets to all or some of the beneficiaries.

Is the above accurate?

Thank you.