How to Administer a Trust in Michigan
Feeling overwhelmed by the task of administering a Michigan trust? As a trustee, it’s essential to approach the task with confidence and a solid understanding of the legal requirements. At Mihelich & Kavanaugh, PLC, we are here to guide you through the process. As experienced trust administration attorneys, we understand the intricacies of proper trust administration.
That’s why we offer expert legal advice to ensure successful trust administration. Our attorneys have the knowledge and skills to handle any issue that may arise during the administration of a trust, from gathering trust documents to managing trust assets and making distributions to beneficiaries. We can assist you in navigating the complexities of trust administration and achieving the best possible result through our commitment to excellence and superior legal services.
Laws Governing the Administration of Trusts in Michigan
A trust may be created, modified, or terminated under Michigan’s trust laws. The Michigan Trust Code (MTC) governs trust administration and specifies the powers and duties of trustees and beneficiaries. A trustee is a fiduciary with a legal responsibility to act in the best interests of the trust’s beneficiaries.
Trustees must exercise reasonable care and skill in managing trust assets, avoid conflicts of interest, and act impartially. The trustee is responsible for managing the trust property, investing the trust assets, making distributions to the beneficiaries, and paying taxes on the trust’s behalf. The Michigan trust laws are complex, which is why trustees may benefit from the guidance of an experienced attorney.
Steps in Administering a Trust in Michigan
The first step in administering a Michigan trust is to gather all trust documents, review the trust terms, and identify all trust assets. After doing so, the trustee will be able to better understand and manage the trust.
Once the initial steps have been completed, the trustee will need to manage the trust assets according to the trust terms. Assets are invested, property is maintained, and assets are distributed to beneficiaries according to the trust document.
If applicable, the trustee must also file any necessary tax returns, including income tax returns for the trust and estate tax returns. Maintaining accurate records of all trust transactions is essential for compliance with Michigan law.
Trustees must always consider the beneficiaries and their circumstances to avoid conflicts of interest. Additionally, trustees should seek the advice of experienced legal professionals to ensure that they are complying with all Michigan laws and regulations.
Common Issues in Trust Administration
The administration of trusts is a complex process that may present several issues and challenges. Disputes between trustees and beneficiaries often plague trust administration. Disagreements can arise over trust documents, distributions, investments, or interpretations.
Accounting and record-keeping are also common issues. A trustee must keep accurate records of all transactions and prudently manage the trust’s assets. When accurate records are not maintained, legal and financial problems can arise.
Managing trust investments is also crucial. The trustee’s fiduciary duty is to manage the trust’s assets responsibly. To fulfill this duty, trustees must make informed investment decisions that align with the terms of the trust and the needs of the beneficiaries.
Trust administration can also be challenging due to estate tax considerations. A trust must be structured to minimize income tax liabilities and maximize benefits for the beneficiaries.
Contact a Macomb County Trust Administration Attorney
At Mihelich & Kavanaugh, PLC, we believe that legal advice is necessary to navigate the complex procedures of trust administration and ensure that the trustees act in the beneficiaries’ best interests. We provide our clients with personalized service and have a wealth of experience in estate planning and trust administration. Learn more about how we can assist you by calling 586-884-6562 for a free initial consultation with one of our trust administration lawyers. Appointments are also available in the evening and on weekends.
