Beneficiaries Rights

As people begin doing more and more Trusts as part of their estate planning, we will find more and more Trust beneficiaries over the years.  Many Trust beneficiaries do not know what rights they have as a beneficiary to copies of the documents, accountings or any information in general.  In April 2010, the Michigan Trust Code was enacted.  The Michigan Trust Code identified the duties and obligations of a successor Trustee.  For example, the successor Trustee must notify the beneficiaries of the Trusts existence, identifying who the Trust was set up by and provide them with the right to request a copy of the terms of the Trust that describe or affect their beneficiaries interest.  This notice needs to be provided within 60 days after the Trustee acquires knowledge that they have become the successor Trustee.  This is typically a result of the death or incapacity of the Trust creator.

The Michigan Trust Code also provides that the Trustee has a duty to report to the beneficiaries Trust property, investments, liabilities, receipts and disbursements, which can include the amount of the Trustees compensation.  The amount of information that is provided to a beneficiary will vary depending on whether the beneficiary is to receive a set dollar amount or whether they are to receive a percentage of the total Trust assets.  Obviously, if a Trust beneficiary is to receive a set amount of $2,000, an account of all assets will not be necessary as they are receiving a fixed amount.  However, if the beneficiary is to receive one-third of the estate, they are entitled to know what the estate value is worth to determine what their one-third portion will ultimately be.  Always keep in mind that as a Trust beneficiary you have the right to contact the Trustee and ask the Trustee any questions with regard to the Trust.