How is a Pourover Trust Created in a Will?

Q: What happens to property in a trust after death in Michigan?

In Michigan, when a person dies, property placed in a trust is managed according to the terms of the trust document. The trustee is responsible for distributing the assets to the beneficiaries as specified in the trust. This process avoids probate, allowing for a more efficient transfer of assets to heirs.

Q: Can a personal representative create a trust in Michigan?

In Michigan, a personal representative of an estate does not create a trust. Instead, the trust must be established in the will itself or through a separate trust document. The personal representative's role is to manage the estate and ensure that the deceased's wishes, as outlined in the will, are carried out.

Full question:

On the Michigan Mutual Wills for Married Couple with Minor Children, under article seven, do we need to establish the trust or is that established by the Personal Representative? Also, what is the difference between field 37 and fields 38 - 41? Wouldn't the beneficiaries property be placed into a trust once we die rather than field 37?

Category: Wills and Estates
Date: 04/07/2025
State: Michigan

Answer:

We assume you are referring to MI-WIL-1459C. In field 37, you are naming the age at which a child is below in order for a trust to be created in the will, by naming the trustee and duties. In field 38, you are specifying the age at which the trustee can begin paying proceeds to the children. In field 39, you specify when the trust ends, according to the age of the youngest child.

Field 40 is where you specify the age at which the grandchild of a deceased child must reach in order for the trust to terminate in the event a child dies before the trust ends and a trust is created on behalf of the child’s heirs. Field 40 deals with the situation where the wife dies first. In that event you may specify that when the youngest child is a certain age, the trust clauses are void and instead the property passes according to the residuary clause in Article 6.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is a mutual will in Michigan?

A mutual will in Michigan is a legal document created by two individuals, typically spouses, that outlines their wishes for the distribution of their assets upon their deaths. These wills are designed to be reciprocal, meaning that each party agrees to the terms set forth in the other’s will, often to protect the interests of their children or other beneficiaries.

How does a trust work in Michigan mutual wills?

In Michigan mutual wills, a trust can be established to manage assets for minor children until they reach a specified age. The will typically outlines the terms of the trust, including the trustee's responsibilities and when distributions to beneficiaries will occur. This ensures that the children are financially protected until they are mature enough to manage the assets.

What happens to property in a trust after death in Michigan?

Can a personal representative create a trust in Michigan?

What are the benefits of establishing a trust for minor children?

Establishing a trust for minor children provides several benefits, including controlling how and when assets are distributed, protecting the assets from creditors, and ensuring that funds are used for specific purposes, such as education or healthcare. It helps safeguard the children's financial future until they reach adulthood.