Novi Trust Lawyers | Novi Trust Administration Attorneys

Let Our Attorneys Explain the Most Important Aspects of Trust and Will Administration in Michigan

Proper will and trust administration ensures the legacy, wishes, and memory of a loved one are honored for generations to come.

However, failing to properly administer an estate can lead to serious consequences. These can include conflicts, financial liabilities, and lawsuits.

If you are responsible for administering a will or trust, let the probate attorneys at Heath & Kolomjec help.

For decades, our Novi estate planning & probate attorneys have helped Michigan residents like you ensure everything takes place legally while avoiding potential risks or problems. To assist you, our attorneys have provided insights into these common trust and will administration topics:

• What to Know About Trust Administration in Michigan
• Guidance for Will Executors
• Important Tax Planning and Compliance Considerations
• What Fiduciary Duties to Expect
• The Most Common Will and Trust Disputes

Trust Administration in Michigan

When a trust is written in Michigan, a trustee is named to be responsible for managing property and assets as directed by the trust agreement.

Serving as a trustee is a weighty responsibility; after all, improperly administering a trust can lead to financial liabilities, fighting between beneficiaries, trust actions being filed, and the entire trust being opened up in court.

That’s why it’s so important for a trustee to care for their responsibilities as set out in the trust and according to Michigan law.

These trustee responsibilities include:

Understanding your responsibilities as trustee

The first step for a trustee is to review the trust terms, gather all trust documents, and identify all trust assets. This includes identifying what is needed to achieve its proper investment, management, and distribution.

Asset management

This step includes safeguarding and investing assets, collecting income, paying expenses, and distributing assets according to the trust document and terms.

Notifying beneficiaries

Michigan law requires trustees to provide notice of administration and keep beneficiaries informed. This includes reporting of trust property and its market value, liabilities, receipts, and disbursements. Additionally, it’s crucial to report details of their compensation as a trustee.

Accounting

Trustees are expected to maintain accurate books and records. Additionally, the trustee must also file any necessary tax returns, including income tax returns for the trust and estate tax returns.

Termination and final distribution

When the trust’s purpose is fulfilled, the trustee must ensure all property and assets have been properly distributed before closing the trust.

Whether you are administering a revocable living trust, special needs trust, charitable trust, or irrevocable trust, Heath & Kolomjec provides reliable guidance and support to ensure everything is thoroughly handled and legally compliant while also minimizing risk.

Will Executor Guidance

When a person with a will passes away in Michigan, the individual named as the executor (also called the personal representative) is responsible for managing the estate throughout the probate process.

If you’ve been appointed as an executor, you have a legal duty to act in the best interest of the estate and its beneficiaries.

For decades, the attorneys at Heath & Kolomjec have helped countless Michigan residents successfully manage wills. As a result, we know what executors often want to know in order to fulfill their obligations.

These common executor responsibilities include:

• Filing the will with the probate court – In Michigan, the will must be submitted to the probate court in the county where the deceased resided.
• Opening the estate – This includes filing necessary documents to be officially appointed by the court and being granted a Letter of Authority in order to handle the deceased’s financial affairs, assets, and debts.
• Inventorying and valuing estate assets – An executor needs a detailed inventory to submit to the court, which includes identifying all assets such as real estate, bank accounts, investments, and personal property.
• Paying debts and expenses – Before distributing assets, the estate must settle any outstanding debts, taxes, or expenses. This involves notifying creditors and allowing them to file claims within the required timeframe.
• Distributing assets to beneficiaries – Once all obligations are met, remaining assets must be distributed according to the terms of the will. Once all debts and expenses are paid and all assets are distributed, an executor can close the estate.

It’s important to note that failing to carry out these tasks properly can lead to legal disputes, claims of mismanagement, or other negative consequences.

That’s why the estate attorneys at Heath & Kolomjec provide the step-by-step assistance executors need throughout the process and ensure everything takes place according to the law.

Tax Planning and Compliance

Trust and will administration often involves handling various tax obligations that must be addressed promptly and accurately. Failing to understand and comply with these requirements can expose the estate or the executor to significant penalties.

The attorneys at Heath & Kolomjec help clients understand and meet the following tax responsibilities:

• Final income tax return – The deceased’s final state and federal income tax returns must be filed for the year of their death.
• Fiduciary income tax returns – If the estate or trust generates income during administration (e.g., interest, dividends, rental income), a fiduciary income tax return (IRS Form 1041) may be required.
• Estate tax considerations – Although Michigan does not impose a state estate tax, larger estates may still be subject to federal estate tax. As of 2025, the federal estate tax exemption is approximately $14 million per individual. We help determine whether the estate meets the filing threshold and assist in preparing necessary filings.
• Generation-skipping transfer tax – If the deceased made significant transfers to younger generations, additional filings or tax payments may be required.

Proper tax planning can also help reduce liabilities, preserve wealth, and avoid delays in distribution. Let our Novi trust and will administration attorneys work closely with accountants and financial professionals to ensure all returns are filed, all deductions are maximized, and all compliance obligations are met.

Fiduciary Duty Representation

In Michigan, executors and trustees hold a ‘fiduciary duty’ to act in the best interests of the beneficiaries and the estate. This includes the duties of loyalty, care, impartiality, and full disclosure. Breaching this duty is illegal in Michigan, resulting in legal consequences and personal liability.

We counsel fiduciaries on how to:

• Administer assets prudently – This includes avoiding conflicts of interest, making reasonable investment decisions, and ensuring assets are used appropriately.
• Maintain accurate records – It’s essential to keep thorough documentation of every transaction, communication, and decision made during the course of estate administration.
• Communicate with beneficiaries – Fiduciaries must provide timely updates, respond to inquiries, and avoid the appearance of secrecy or favoritism.
• Avoid self-dealing – A fiduciary must never use estate assets for personal benefit unless expressly authorized.

Let Heath & Kolomjec ensure you don’t breach your fiduciary duty, resolve misunderstandings before they escalate, as well as provide the legal defense if you are accused of breaching your fiduciary duties.

Additionally, our Novi probate attorneys can also help investigate and even pursue legal remedies to protect your interests if you are a beneficiary concerned about a fiduciary’s conduct.

Dispute Resolution

Even with a clear will or trust in place, disagreements among beneficiaries or challenges to the estate’s administration can arise.

These conflicts may arise due to emotional tensions, questions of fairness, or suspicions of undue influence or mismanagement. When disputes occur, they must be handled delicately but firmly to preserve relationships and ensure legal compliance.

We represent clients in a wide range of estate and trust disputes, including:

• Will and trust contests – Claims that the document is invalid due to the deceased writing it without properly understanding what they were doing, under coercion to make a change, or that there has been fraud involved.
• Breach of fiduciary duty – As mentioned above, an executor or trustee is legally required to act in the best interests of the deceased. Thus, there may be allegations that the executor or trustee acted improperly, such as mismanaging assets, showing favoritism, or failing to keep beneficiaries informed.
• Asset disputes – Conflicts over who is entitled to specific assets may arise, especially those not clearly addressed in the will or trust.
• Ambiguities in the documents – Unclear or conflicting terms in the estate plan may require court interpretation or agreement among parties.
• Removal of fiduciaries – If it is believed that an executor or trustee is not fulfilling their obligations, beneficiaries may petition the court for removal and replacement.

With decades of experience, our Novi probate lawyers are skilled in negotiation, mediation, and courtroom advocacy. We understand the best approach to resolve disputes efficiently while protecting the rights and wishes of your loved one.

Receive Personalized Help with Administering a Trust or Will

We know that administering an estate is more than just a legal responsibility — it’s a personal duty that deserves dedication, care, and attention.

Let the probate attorneys at Heath & Kolomjec help you effectively handle each responsibility involved in administering a will or trust so you can move forward with clarity, confidence, and peace of mind.