The transfer of wealth from one person to another, or one generation to another, can be a complicated and highly personal venture. If someone chooses to pass wealth through the use of a trust, the responsibility of trust administration is a challenging responsibility. Michigan beneficiaries and residents embarking on the process of trust creation can ensure proper trust administration by first realizing which kinds of trusts are available and may work best for their given situation.
No two families are alike, so the ways families choose to distribute wealth and assets will vary considerably depending on the unique circumstances of each family. Before Michigan families begin making decisions about estate planning and trust administration, it is important for them to understand their options. Understanding the different types of trusts and their purposes can help a family to ensure funds and assets are handled according to its specific needs.
Creating a trust and managing a trust can be an ideal way to handle assets and funds for loved ones. However, trust management responsibilities should be taken very seriously and require an understanding of the different types of trusts that may suit different needs. Michigan families may want to explore which kind of trust is best and how management of that trust should be handled.
Some people may wrongfully assume trusts are only created for those who have a significant amount of wealth to hand down to loved ones. Regardless of the size of an estate or the amount of money being considered as part of an estate plan, creating the right kind of trust can be a first step in the right direction. After the right kind of trust is created, trust administration becomes the way in which the process unfolds in accordance with your vision. Michigan families may want to get further information about trust administration duties and the types of specific trusts that may work in each situation.
How can people in Michigan plan for the unfortunate but real possibility that their heirs and beneficiaries will encounter debt problems or some other financially draining event such as divorce? This question too often goes unaddressed in estate planning, and the money that well-meaning estate planners intend for their loved ones sometimes ends up being divided in a divorce settlement or siphoned away to pay off debt.
Estate tax laws have changed in the United States, and many Wayne County residents will need to revise their estate planning documents to keep up with the times. In anticipation of the changes, high-earners throughout the country established trusts in 2012 and took other estate planning measures to protect assets and limit tax liabilities.
The success or failure of a business corporation often depends on how smoothly the ownership and administration of the business is passed from the deceased founder to the heirs. Merely focusing on proper estate planning and ignoring estate administration can lead to prolonged litigation, which may affect the overall stability and growth prospects of the inherited businesses.
Incorporating an endowment into an estate plan allows Michigan residents to lend financial support to cherished foundations beyond the planner's own lifetime. Estate planning strategies typically include establishing specific conditions to preserve assets, regulate distribution and prevent inappropriate spending. A recent dispute involving a Michigan church demonstrates the role a detailed estate plan can play in protecting beneficiaries.
A person's death may be felt by a wide range of people, but it is usually up to surviving family members to deal with the difficult task of finalizing the estate of the deceased. This can become complicated if some of the heirs do not agree with the terms of a trust or will. Trust litigation can be drawn out and emotionally taxing when family members fight against one another. A state Supreme Court recently ruled against one daughter of a late millionaire who had challenged the terms of her father's trust in this way.
In many cases, trust beneficiaries are disabled, and Michigan residents who are in charge of trust administration may need to take steps to better a disabled beneficiary's life. In doing so, it's important to be aware of the legal rights of everyone involved.
Readers in Oakland County might be interested in some recent news about trust administration. On Dec. 31, a surrogate judge ordered two trustees to answer for the lack of use of an account that was provided to a disabled beneficiary. The judge is said to have criticized the trustees for failing to note the needs of the disabled man and failing to improve his life by spending the funds in ways that could help him.