GUIDELINE OF PROCEDURES (Single Trust)

Transcription

1 GUIDELINE OF PROCEDURES (Single Trust) The following is provided as a general guideline of procedures required in the event of incapacity or death. Every situation differs and there also may be changes in the law, so the following information is for general reference. Your Trustee should consult with an attorney for up to date legal advice. A. WHAT TO DO UPON THE INCAPACITY OF SETTLOR 1. CONTACT ATTORNEY. Your successor agent and trustee should contact our office to set up an appointment to review the current, legal requirements. 2. DETERMINE HOW AUTHORITY UNDER EACH DOCUMENT IS ACTIVATED: a. Will A Personal Representative has no authority unless a probate matter has been commenced and the will admitted to probate. This does not occur until after the Settlor passes away. b. Trust Review the language of the Trust to determine how a nominated successor Trustee s power is activated when the Settlor is incapacitated. Do you need written doctor certifications? c. Durable Power of Attorney Review this document to determine the type of power of attorney and when the nominated agent has authority to begin acting. i. General Typically, an agent has authority to act as soon as the document is signed (i.e. authority is granted for convenience purposes). The agent is not required to obtain a determination of incapacity to have authority to act under this document. ii. Springing Typically, an agent has authority to act only after a determination of incapacity. The agent will likely need to obtain two physicians certifications before the power of attorney is activated. d. Patient Advocate Agreement By state law, two doctors are necessary to determine the individual is no longer able to make or communicate informed medical decisions on his own. If the patient advocate has not already done so, he must sign an Acceptance before he can act.

2 Upon a transition of authority under a Trust Agreement, a Successor Trustee should tend to the following: 3. ACCEPTANCE OF TRUST: Upon receipt of the Settlor s resignation or physician statements certifying incapacity, the Successor Trustee must sign an Acceptance of Trust. The signing of this document means the Successor Trustee formally accepts the appointment as Trustee and agrees to follow the terms of the trust. 4. NOTICE OF TRUST: Within 63 days of accepting the trusteeship, the Trustee must notify the qualified trust beneficiaries of the acceptance, including, but not limited to, the Trustee s contact information and whether the trust is registered with any court. MCL (2) (b). 5. CERTIFICATE OF TRUST EXISTENCE AND AUTHORITY: Once there has been a change in the acting trustee, the Trustee will need a new Certificate of Trust to provide to various entities. 6. RE-REGISTER ACCOUNTS: The now acting Successor Trustee will likely need to re-register any investment or bank accounts. The ownership of the accounts remains in the name of the trust, but entities will need to update records to reflect the new trustee and what powers the trustee has. This would also be a great opportunity to ensure the Settlor s assets are titled in the name of the Trust or name the Trust as a beneficiary. If the Settlor forgot to update accounts in this manner, there will likely be some type of probate upon Settlor s death. 7. PREPARE ASSET INVENTORY: The successor Trustee must prepare a list of all trust accounts and the respective values as of the date the successor Trustee took over management of the Trust. 8. PREPARE ANNUAL ACCOUNTINGS: As long as a trust remains revocable, the duties of the Trustee are owed exclusively to the Settlor. If the Trustee reasonably believes the Settlor of a revocable trust is incapacitated, the Trustee shall keep the Settlor's agent informed of the existence of the trust and keep the agent reasonably informed of the administration. If there is no designated agent or if the sole agent is the Trustee, Trustee must keep the beneficiaries informed of the existence of the trust and reasonably informed of its administration. Unless the terms of the Trust state otherwise, a Trustee must send to the beneficiaries, at least annually, a report of the trust property, liabilities, receipts, and disbursements, including the source and amount of the trustee's compensation, a listing of the trust property and, if feasible, their respective market values.

3 B. WHAT TO DO AFTER THE DEATH OF THE SETTLOR 1. CONTACT ATTORNEY. The successor Trustee should contact our office to set up an appointment to review the current, legal requirements. 2. POWERS OF ATTORNEY: The authority granted to an agent under a Durable Power of Attorney or patient advocate under a Patient Advocate Designation is void at death. It is improper to continue (or attempt) to use these documents after the Settlor has passed away. A nominated individual should only conduct business in his capacity as Trustee. 3. ACCEPTANCE OF TRUST: The nominated successor Trustee must sign an Acceptance of Trust, which means he accepts the appointment as a Trustee and agrees to follow the terms of the trust. Within 63 days of accepting the trusteeship, the Trustee must notify the beneficiaries of the acceptance, including, but not limited to, the Trustee s contact information and whether the trust is registered with any court (See MCL (2) (b)). 4. CHANGE MAILING ADDRESS: Trustee should submit a change of address form with the post office. The Trustee may also need to update the mailing addresses with each financial entity holding Trust assets. 5. FILE ORIGINAL WILL: Although it should not be necessary to start a probate estate, the Trustee must file the original will with the local probate court along with a copy of the death certificate. MCL requires the person with possession of the original will to forward the same with reasonable promptness after the death of the testator either by delivering it personally or by sending it by registered mail. There is currently no fee for doing so. 6. NOTICE OF TRUST: Within 63 days of the Settlor s death, the Trustee must send a Notice of Trust to the beneficiaries. This notice shall include the information regarding the existence of the Trust, including the name of the Trust, the name of the Settlor, the name and address of the Trustee, information about the Trust registration, and a notice to the beneficiary that he or she is entitled to request a copy of the terms of the trust that describe or affect the beneficiary s interest. This notice should also include language about the trust contestability period. Without specific notice, a beneficiary or disinherited individual could challenge the terms of trust for up to two (2) years after the date of death (with proper notice this period is reduced down to six (6) months.

4 7. FEDERAL IDENTIFICATION NUMBER: The Trustee must obtain a tax identification number for the Trust (often referred to as TIN or EIN). This number is assigned by the IRS. Trustee should then use this new EIN for all Trust assets instead of the Settlor s social security number. 8. CLAIMS NOTICE FOR CREDITORS: If there is no probate estate, the Trustee must publish a claims notice in the newspaper where the Settlor resided. If the decedent had multiple revocable trusts in existence at death, the trustee of each revocable trust is obligated to publish a notice to creditors. The notice must be published one time. Creditors then have up to four (4) months to submit a claim against the Trust. Generally speaking, a Trustee should not distribute the assets of the Trust before the expiration of the claims period. *** If the Trustee elects to publish the Notice to Creditors without retaining legal counsel, the Trustee is not authorized to include the name of the attorney or the law firm within the Notice to Creditors. 9. INVESTIGATE FOR KNOWN CREDITORS: The Trustee should review the Settlor s financial documents for the last 2 years immediately preceding death to determine if any creditors exist. If creditors exist, Trustee must send a notice directly to the creditor by mail (in other words - the publication process is insufficient for a known creditor). If the Trustee fails to adhere to this requirement, the Trustee may be extending to the claims period for the Trust up to three years. 10. MEDICAID ESTATE RECOVERY: Michigan has a Medicaid Estate Recovery law. If the Settlor received Medicaid benefits for long term care in a nursing home setting, the Trustee must ensure Third Party Liability is notified as a known creditor. The Trustee (or former agent under the Durable Power of Attorney) will likely receive a Medicaid Estate Recovery Questionnaire. The form must be completed and returned in a timely fashion. The purpose of the form is to determine if the State of Michigan has a valid claim to recover Medicaid benefits expended on behalf of the Settlor. Under current law, Medicaid Estate Recovery is limited to assets of a probate estate. Therefore, whoever completes this form should be extremely cautious and accurate. 11. CANCELATIONS: Trustee shall take reasonable steps to investigate and cancel: HEALTHCARE INSURANCE Healthcare premiums may be automatically deducted from bank accounts. Trustee should cancel the health insurance and determine if any refund is owed.

5 CREDIT CARDS Each credit card company has their own policies and procedures for closing accounts. Contact each company and adhere to its requests. A company will not cancel an account with a balance due. Trustee should determine if the charge activity were by or for the benefit of the decedent. PRIVATE PENSIONS - Trustee should also notify any private pension providers of the death. You may need to return any payments received after death. The funeral director notified Social Security Administration. If the decedent did not survive the entire month, he is not entitled to keep that month s social security payment. Be mindful of this when closing out bank accounts. CLUB OR ORGANIZATION MEMBERSHIPS Trustee should cancel memberships and determine if any refund is owed. SUBSCRIPTIONS Trustee should cancel any subscriptions and determine if any refund is owed. 12. CREDIT REPORTING AGENCIES The Trustee may want to report a death to the following credit reporting agencies: Equifax, Experian and Transunion. The Trustee may also wish to obtain a credit report to help identify legitimate creditors and prevent or detect identity theft. 13. REAL ESTATE: There are several necessary steps involved with the real estate. Some of those steps include: a. Record any deeds transferring property into the trust if they were not previously recorded during the Settlor s lifetime. The Register of Deeds will collect a recording fee for each deed or supplemental document. If a Ladybird Deed was used in the estate plan, a change in ownership occurs by operation of law (meaning upon the happening of an event i.e. the death). The Trustee can establish this change in ownership by recording the grantor s certified death certificate. The Register of Deeds will collect a recording fee. b. Record a new and current "Certificate of Trust Existence and Authority". Whenever real estate is transferred out of a Trust, a corresponding Certificate of Trust must be recorded with the Register of Deeds. This document evidences the Trustee s authority and powers, as well as identifies the real estate of the Trust. The Trustee should wait on this requirement until the sale or transfer actually takes place. c. Record a certified copy of Settlor s death certificate with the Register of Deeds where the real estate is located (if not previously done, you may also need to record a death certificate for a predeceased spouse). Again, the Register of Deeds will assess a recording fee.

6 d. File Necessary Forms with the city or township assessor: i. Property Transfer Affidavit - Trustee should file a Property Transfer Affidavit with the local tax assessor with 45 days of date of death or transfer of property. Typically when a transfer of ownership occurs, the taxable value of the real estate uncaps in the year following the transfer. Previously all transfers from trusts and probate estates were subject to uncapping. After December 31, 2014, the new law provides exemptions to protect transfers to certain family members: Spouses Parents Siblings Children (including biological, adopted and step children) Grandchildren (including biological and step grandchildren) Now the following transfers are not subject to uncapping: (1) a transfer of residential property into a trust if the beneficiaries are family members of the relationship degree listed above; and (2) a distribution of residential property from a trust if the recipients are family members of the relationship degree listed above. If this is not an exempt transfer of ownership, you should anticipate an increase in the real estate taxes. ii. Request to Rescind Principal Residence Exemption (PRE) - Within 90 days of the date of death, the Trustee must file a Request to Rescind the Principal Residence Exemption (PRE) with the local tax assessor. You should anticipate an increase in the real estate taxes because of this rescission. If the property is specifically devised to a beneficiary, when the Trustee distributes the real estate (delivers a deed) to the beneficiary, the beneficiary should file for a new principal residence exemption (assuming the property is in fact a primary residence). iii. Qualified Agricultural Exemption Trustee shall determine whether the land is classified (or should be classified as) qualified agricultural land and file any necessary forms to keep or claim the qualified agricultural exemption. iv. Out of State Property - If the real estate is not located in Michigan, the Trustee should check on any necessary state filings in the state where the property is located.

7 e. Investigate the current status of any homeowner s and/or liability insurance and make sure the property is properly insured. Please note some insurance companies will not insure a vacant home. A Trustee may be personally liable for any loss to the property due to Trustee s inability to properly or fully insure the Trust asset. f. Investigate whether any real estate taxes are outstanding on the property to ensure the property is not subject to a tax sale. Trustee should timely pay real estate taxes until the property is sold or distributed. g. Trustee should determine whether an oil, gas, and mineral lease exists. If oil, gas, and mineral leases were executed with the Settlor in his or her individual capacity and not as trustee, this may be a probate asset. Trustee must also determine whether any oil, gas and mineral interests have been severed from the land. Trustee may need to issue separate deeds for the land versus the oil, gas and mineral rights. 14. ORDER PRELIMINARY TITLE COMMITMENT(S): We strongly recommend the Trustee obtain a preliminary title commitment for each parcel owned by the Settlor. Doing so will allow the Trustee to ensure: (1) ownership; (2) proper legal descriptions with no defects on the title; and (3) whether any liens against the property exist. This information is extremely useful prior to any transfer, distribution or sale of real estate. When a Trustee sells real estate, he will need to provide a title commitment policy to the purchaser. Some title companies may charge for this service. Trustee should check whether the title company will credit the purchase of a preliminary title commitment toward the finalized commitment policy. 15. APPRAISAL OF REAL ESTATE: A Trustee may use the most recent property assessment as evidence of the fair market value of the property on the date of death (two times the state equalized value). However, there are pitfalls with doing so. The Trustee should instead obtain an appraisal of each parcel of real estate to establish the new stepped-up cost basis. The appraisal will more accurately reflect the date-of-death valuation (i.e. the new cost basis) of the real estate. The appraisal will also determine the capital gain or loss on a future sale of the real estate. Without an appraisal, the IRS may not accept valuations claiming a capital gain or loss. The Trustee must review the terms of the Trust to determine if a Right of First Refusal or Option to Purchase exists. If an option to purchase clause exists, the Trustee will need to obtain two (2) real estate appraisals. These appraisals should be from a licensed appraiser (a market analysis from a realtor or broker is not sufficient).

8 16. CHECKING ACCOUNT: The Trustee should utilize a trust checking account during the administration of the Trust. The Trustee should create a trust checking account using the new Trust EIN. The Trustee should have a Certificate of Trust Existence and Authority and a copy of the death certificate available when reregistering or establishing any Trust accounts. 17. BANK ACCOUNTS: Within reason, the Trustee should close out all savings, checking (other than the checking account used for the administration of the trust), money markets, certificates of deposit and other bank accounts. The closing balances should be separate and itemized when deposited into the Trust checking account. Depending on the amount, the Trustee may need to utilize multiple accounts to have the funds protected under FDIC. 18. STOCKS: The Trustee should determine what stocks are owned and how. Are the stock interests in the name of the Trust? If not, a probate estate may be necessary. If the stock interests are owned by the Trust, the Trustee should re-register the stocks (similar to the process done for the bank accounts). Are the stocks in certificate or book entry form? Ownership of stocks may be a combination of having actual stock certificates and some issued in book entry form. Trustee should investigate to make sure all shares are identified and properly managed. Trustee should perform a due diligence investigation of the soundness of the stock investment. Trustees must follow the "Michigan Prudent Investor Rule." In essence this means the Trustee must invest as a prudent investor would, taking into account the purposes, terms and distribution requirements expressed in the Trust (and other circumstances of the overall Trust). Trustee must exercise reasonable care, skill and caution. Obviously, a Trustee cannot guarantee the investment results, but the Trustee does have a duty to analyze the investments. Trustee must decide if it makes sense to liquidate the stocks or if the stocks will be distributed (transferred) in-kind to the beneficiaries. If the Trustee opts to liquidate the stock interests, he should expect a two step process: first, the re-registration of the account and second, the liquidation of the stocks. Simultaneous with the due diligence step, the Trustee should value the stock interests as of date of death. Generally speaking, the fair market value for stocks or bonds is the mean between the highest and lowest quoted selling prices on the date of death. If the date of death falls on a weekend, Trustee should obtain data for the preceding Friday and following Monday. The Trustee should enlist the financial broker to prepare this date of death valuation.

9 Similar to real estate interests, stocks also receive a stepped-up cost basis. Therefore, accurate valuation is essential and may have significant income tax consequences. 19. VEHICLES: Trustee should take possession of all vehicles immediately. No one, including the Trustee, should drive the vehicles at this point. If someone drives the vehicle and gets into an accident, the Trust may have liability exposure as the owner. Furthermore, the insurance provider may not cover the liability if the driver was not properly covered under the policy as an insured driver. The Trustee should sell or transfer the title to any vehicles as soon as practical to avoid this liability situation. After the sale of the vehicles, the Trustee should cancel the insurance and obtain any refund of the premium. The Settlor may have signed the title prior to his death to more easily allow the Trustee to negotiate the title upon death. If that was not done, a probate estate should not be necessary for the transfer of a vehicle (assuming the total valuation is under $60,000). The heirs (surviving spouse or children) may utilize a process at the Secretary of State. Excerpt from the Secretary of State website: When a vehicle owner dies and the estate is not probated, the surviving spouse, or, if no spouse, the next closest kin may transfer the vehicle into their name. This is done by presenting the title, the current registration or license plate number (if there is one), and a copy of the death certificate to a Secretary of State Branch Office. The surviving spouse or next closest kin will complete a Certification From the Heir to a Vehicle. However, if a probate estate exists, the Personal Representative must deal with any re-titling issues. The Trustee shall obtain a date of death valuation of the vehicles from a licensed dealer or from Kelley Blue Book. 20. LIFE INSURANCE: Trustee should investigate what life insurance policies exist, the type of policy (e.g. life insurance versus accidental death and dismemberment) and if the Trust is named as the beneficiary. Trustee should contact the respective insurance companies and obtain a claim form for each policy. When received, the claim form should be completed and returned to the insurance companies immediately. When the proceeds are received, the proceeds should be deposited into the checking account, making a separate deposit for each policy. Trustee should request a Form 712 from the insurance company for valuation purposes.

10 21. INVENTORY: Within days after the Successor Trustee assumes authority, the Trustee must prepare an inventory of all assets included in the trust. The inventory will be a snapshot of the trust assets, and respective values, as of the Settlor s date of death. Since the trust assets may be subject to market fluctuation, gains, or losses, the inventory should be viewed as a starting value only. The Trustee must satisfy all trust administration expenses, claims, and taxes before making distributions to the beneficiaries. Therefore, the inventory value does NOT represent the value available for distributions. It is a snapshot of the valuation of asset at a moment in time. Trustee must send a copy of the inventory to all of the beneficiaries (and potentially any unsatisfied claimants). A Trustee s failure to comply with this step may be considered a breach of fiduciary duty. 22. DEBTS AND EXPENSES: The Trustee should determine what debts are owed and pay them within a reasonable period of time after the expiration of the claims period. If the Trust lacks assets, there is a statutory priority in which creditors should be paid (See MCL ). If the Trust is insolvent, the Trustee may be personally liable for payment to a creditor who was not entitled to a payment. 23. FEDERAL ESTATE TAX: If the decedent s assets exceed the federal estate tax exemption threshold, the Trustee must file a Federal Estate Income Tax Return (Form 706). This return and tax is due 9 months from date of death. Trustee may request an extension for the time to file this return. However, there is no extension available for the time to pay the tax. A Trustee may subject the trust to various penalties and interest assessments if Trustee fails to file a required estate tax return. Trustee may also incur personal liability if Trustee is negligent in filing the tax returns. Trustee should prepare a separate inventory that includes the entire gross estate (meaning the trust assets, any probate assets, any joint assets, any beneficiary designated assets or other interests). The gross estate value is used to determine if the Trustee must file a return. The applicable exclusion amounts are: Year of Death Tax Exemption $2,000, $3,500, $5,000, $5,120, $5,250, $5,340, $5,430, $5,450,000

11 24. MICHIGAN ESTATE TAX: Decedents who die after December 31, 2004 are not subject to a Michigan inheritance or estate tax. Therefore, no estate tax forms need to be filed with the Michigan Department of Treasury. 25. OTHER STATE ESTATE TAX: If the Trust has property in states other than Michigan, that state may have additional estate tax requirements. Please check with a qualified accountant or CPA on any estate tax filing requirements for states other than Michigan. 26. DECEDENT S FINAL INCOME TAX RETURN (Form 1040): Trustee must file an income tax return on behalf of the decedent. This return is due on April 15 of the year following death. The Trustee should obtain the necessary tax information and present the same to the decedent s CPA for preparation of this final return. This return should cover January 1 to the date of the decedent s death. 27. INCOME TAX RETURN FOR TRUST (Form 1041): In addition to the decedent s final income tax return, the Trustee must prepare an income tax return for the Trust. The first return will cover a period from date of death to December 31. The Trustee should contact a CPA and provide him with the required information to prepare this return. Income tax returns are also due for subsequent tax years if the Trust earns enough income and continues to hold assets. You should work with your accountant or CPA to get these returns filed. The returns are due April 15 of each year until the trust terminates. 28. INCOME TAX RETURNS FOR ANY SUB-TRUSTS (Form 1041): If the terms of the Trust require a beneficiary s share to be held in trust, the Trustee must obtain a separate tax identification number for each sub-trust. The Trustee should do this when he is ready to fund the sub-trusts (in other words, when the Trustee is ready to distribute the beneficiary s share from the main trust to the sub-trust). As long as the sub-trust continues, the Trustee must prepare annual income tax filings for each sub-trust. 29. ACCOUNTING: In general a Trustee has the duty to gather, value and liquidate the assets; pay the debts, expenses and taxes; and distribute the balance of the Trust assets pursuant to the terms of the Trust. In order to arrive at the correct figures for tax purposes or to calculate distribution amounts, the Trustee must prepare an accounting. The accounting reflects what assets the Trustee started with (the Inventory valuation discussed in paragraph 20 above); the income received; the expenses paid, and the balance remaining for distribution.

12 Trustee must provide annual or final accountings to the beneficiaries. In fact, Michigan law requires an accounting be provided at least annually to the beneficiaries. A Trustee will be in breach of his fiduciary duty for failure to adhere to this requirement. 30. PREPARE A PROPOSED DISTRIBUTION SCHEDULE: As part of the Trustee s accounting, he should prepare a schedule that clearly identifies the proposed distributions for each beneficiary, as well as any escrow held for final expenses or income tax preparations. We strongly recommend the Trustee send this proposed distribution schedule before distributing any money. If there are no objections to the Trustee s management of funds, all of the beneficiaries should consent to the accounting and proposed distribution. 31. TRUSTEE EXPENSES: Trustee is entitled to reimbursement for out-of-pocket expenses, such as any long distance telephone calls, facsimile or copy charges, and mileage. The current mileage rate for 2016 is 54 per mile (the rate may change annually or more frequently please check for applicable rates). Trustee must keep track of all miles driven exclusively for trust administration purposes. It is inappropriate for a trustee to charge the Trust for mileage and also for gasoline purchases. Trustee should be paying most, if not all, expenses from the Trust checking account. Trustee must have receipts or other appropriate records to justify and support the expenses. Trustee expenses are deductions on the Trust income tax returns. 32. TRUSTEE FEES: Michigan law states a Trustee is entitled to a reasonable fee. This can be overridden by the terms of the Trust, so review the Trust before assessing any fees. Trustee fees are a deduction on the Trust income tax return, but the fee is taxable income to the Trustee. At the onset of the trust administration, the Trustee should notify the beneficiaries of the intent to charge a fee, the amount of the fee, and the frequency of payment. If the Trustee later changes his mind about the fee or rate, Trustee must notify the beneficiaries, in writing, and in advance of implementing any change in the method or rate of the trustee s compensation. In order to collect this fee, Trustee must keep a detailed record of the time spent administering the Trust - recording the date a service was performed, a thorough description of the service, and amount of time to complete the service. Sloppy records could mean a disallowance of Trustee fees. If a beneficiary objects to the Trustee fee, a court may lower the fee or refuse the fee entirely if sufficient documentation is not provided or if the fees were not justified and reasonable and necessary to carry out the administration process.

13 33. GENERAL DUTIES AND REQUIREMENTS: Trustee has many general duties: The duty to keep the beneficiaries informed as to the progression of the trust administration. Trustee may wish to send monthly or quarterly updates regarding the administration process. A Trustee s failure to communicate with the beneficiaries often unnecessarily leads to court involvement. The duty of undivided loyalty, which means the Trustee must put the interest of the Trust over all other interests. The duty to refrain from self-dealing, which means a Trustee cannot personally benefit from trust transactions (e.g. sell the trust real estate or assets to himself or an immediate family member without beneficiary consent or court approval). The duty to keep trust assets separate from the Trustee s individual assets, which means a Trustee cannot place cash owned by the trust into his personal bank account. The Trustee must keep separate, itemized records of all trust income and expenses. For this reason, if the Trustee previously maintained a joint checking account with the decedent, we strongly recommend the joint account be closed and a new trust checking account opened. The duty of impartiality, which means the Trustee may not favor a particular beneficiary s interest over another s interest. Trustee cannot favor beneficiaries from one class over another (i.e. an income beneficiary vs. a remainder beneficiary). The duty of care, which means a Trustee must act as a prudent person would act in dealing with the property of another (including following the "Prudent Investor Rule" previously discussed). 34. SUMMARY: While a revocable trust plan typically avoids probate, from a practical standpoint, there are still a lot of the same formalities as probate administrations, as well as similar time constraints and deadlines. Trustees should anticipate, in a best case scenario, this administration process will take at least 7-9 months. Depending on the type and nature of the trust assets, as well as the terms of the trust agreement, this process can take longer. 35. LEGAL COUNSEL: When utilizing a consultation with one of our attorneys, the Trustee should avoid bringing third parties to the appointment, particularly beneficiaries of the Trust. Many people believe there is a reading of the will, but that does not occur as it does in the movies. The beneficiaries are entitled to and must receive proper notification, which usually occurs by mail.

14 The Trustee is a fiduciary who is entitled to legal representation. The attendance of third parties often hinders open communications between the lawyer and Trustee; voids attorney-client privilege; and gives the beneficiary a false impression that the attorney also represents the beneficiary. An attorney cannot represent the Trustee and a beneficiary that is a conflict of interest. Last Revised on January 18, Maple Street, Suite A, Big Rapids, MI (231) Hastings, Suite 105, Traverse City, MI (231) S. Elm St., Gaylord MI (800)