As I have surpassed 30 years of practicing law, I continue to find that many families have dysfunction and angst. While the parents are living, the disagreements are quelled, but once the parent or spouse is gone, the divisiveness that was tapped down while the person lived is released. It is sad in many ways.

It seems to be the opposite when one shows up at someone’s funeral and everybody is complementary of the decedent, when in fact the decedent was not liked. Obviously, out of respect for the decedent one need not pay their respect by criticizing, but it can be a little like acting in those situations. Both situations are quite common from my experience.

The other observation is that parents or grandparents confide their frustrations about relationships with family while they are living. So, what if a parent decides to omit or disinherit a child in their trust? Is that legal and if so, what happens when they’re gone?

Well, assuming that a parent was not defrauded to get them to change their estate planning; they did not suffer from lack of capacity or undue influence…disinheriting is certainly done quite often. It is definitely legal, as it is your money.

After you’re gone, presuming you have a trust, does the trustee have a duty to notify a beneficiary specifically disinherited in a trust?

The answer is no. Under MCL 700.7814(2)(c), the trustee has a duty to notify the qualified trust beneficiaries of the trust’s existence, the identity of the settlor(s), the court in which the trust is registered, and of the right to request a copy of the terms of the trust that describe or affect the trust beneficiary’s interests.

A person who has been disinherited is not a trust beneficiary let alone a qualified trust beneficiary. MCL 700.7103(l). Thus, no notice is required.

However, that being said, there may be a benefit to informing the disinherited beneficiary. The trustee will want to evaluate whether to send notice to the disinherited beneficiary under our laws to shorten the time period in which the disinherited beneficiary could challenge the trust. If done properly, the disinherited beneficiary might
only have six months to challenge the trust after being given notice of the trust. These deadlines are only enforceable if the appropriate notice is properly given. This is why in most cases, the use of an attorney that practices in estate or trust administration are beneficial to advise the successor trustee of their legal duties and obligations.