STATE OF MICHIGAN
PROBATE COURT
COUNTY OF OAKLAND
PETITION TO COMPEL DISTRIBUTION OF ESTATE AND ORDER THEREOF
FILE NO. ___________
In the matter of a certain Living Trust.
Now comes the undersigned, a beneficiary in said Trust, and for this Petition to Compel Distribution of Estate, states as follows:
The petitioner is one of four named beneficiaries in the trust. The other beneficiaries are siblings. Both petitioner and another sibling were originally appointed co-trustees by their parents, who passed away in 2008 and 2009, respectively.
All assets in the Trust, with the exception of a summer home, an adjoining vacant lot, household contents including watercraft and furnishings, and remaining funds in financial accounts, were distributed following the death of their mother in 2009.
In 2009, the beneficiaries agreed to contribute funds to maintain the summer home, with larger operating expenses handled via one investment account and minor expenses paid through a separate banking account.
Subsequent accounting issues and disagreements led petitioner to request a distribution of their final share. Instead, the others offered to buy out petitioner’s interest. One sibling claimed certain Trust assets should be excluded based on a document they alleged was authored at the parents’ request.
Petitioner disputed the validity of the document. A formal appraisal was conducted and approved by all. A distribution agreement was drafted, but was later contested by the other trustees, citing an alleged statute requiring a value reduction for commissions. Petitioner offered a compromise, but it was rejected.
Multiple attempts were made by petitioner to resolve the matter amicably, including proposing legal counsel and offering to cover those expenses. After further delays and avoidance by the trustees, petitioner reminded them of the original intent of the Trust to avoid court involvement.
A meeting was held with legal counsel, and it was discovered that the appraisal had not yet been completed. Once finished, a new distribution agreement was drafted, though it contained errors and was based on incomplete data. Petitioner requested full disclosure of all Trust assets, which revealed the existence of a previously undisclosed account.
Legal advice was obtained, which suggested possible embezzlement. Petitioner chose not to pursue criminal action but instead shared concerns with the trustees. This led to personal accusations and further avoidance.
Despite persistent efforts—emails, calls, texts—petitioner was ignored. Legal representation was retained to issue a demand letter, which was also ignored. One trustee later instructed petitioner to refrain from communication, stating they would reach out when ready to resolve the matter. No such communication was ever received.
Although the trustees originally agreed on appraisal amounts and distribution in 2013, they later reneged, citing a fabricated legal basis for a reduction in value. Their actions delayed the settlement, allowing them continued benefit from Trust assets.
The petitioner has been denied access and use of the property since mid-2013 while their share subsidized the enjoyment of the other beneficiaries. Several breaches of trust were committed, including failure to provide accounting, concealment of accounts, and commingling of personal and Trust funds.
At one point, two Trust accounts were opened with a bank under the names of the trustees, without transparency. One trustee admitted to linking the Trust account to their personal banking, denying petitioner online access. Fidelity Investments accounts were hidden for three years until it suited the trustees to disclose them.
A similarly named Trust was created to circumvent third-party notifications and retroactive dues assessments. This obscured proper asset ownership and potentially voided insurance coverage on shared property.
The same trustee later presented a questionable document claimed to be authored by one of the parents, contradicting earlier statements. Trustees have refused to equitably distribute assets, delaying and disregarding communications.
Due to these actions, petitioner suffered financial harm and early retirement withdrawals, resulting in penalties and lost long-term gains. Had the distribution occurred as agreed in 2013, those losses would have been avoided.
The trustees themselves acknowledged the importance of investment timing in prior communications, further proving knowledge of the financial damage caused by delay. The agreed distribution amount would have more than tripled in value had it been invested accordingly.
The trustees acted in reckless disregard of their duties under the Michigan Trust Code. They withheld reports, failed to keep accurate records, and denied petitioner access to necessary financial documentation.
Petitioner dedicated extensive personal time and resources in their role as co-trustee without reimbursement. Expenses related to legal consultations and Trust-related purchases remain unpaid. The trustees manipulated petitioner’s willingness to resolve the matter without litigation to their own advantage.
LEGAL ARGUMENTS
Breach of Trust:
Trustees are obligated to manage another’s property fairly and competently. Under Michigan law, a breach occurs when a trustee fails this duty. In this case, irregularities, refusal to account for Trust funds, and disregard for the beneficiary’s rights amount to repeated breaches of fiduciary duty.
Abuse of Authority and Commingling:
The trustees misused their authority and intermingled Trust funds with personal assets, violating fiduciary principles. The creation of alternate accounts and refusal to disclose changes in Trust assets illustrate their disregard for transparency and legal obligations.
Fraud and Misrepresentation:
To prove fraud, one must show intentional misrepresentation with the goal of misleading and causing harm. The trustees presented fabricated documents and misrepresented legal obligations to avoid distributing the Trust fairly, resulting in financial loss to the petitioner.
CONCLUSION AND REQUESTS FOR RELIEF
Wherefore, petitioner respectfully requests the following relief from this Honorable Court:
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An order that the remaining Trust properties be sold or appraised and included in a final valuation, with petitioner receiving a rightful share.
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Compensation for lost investment opportunity costs as damages or such amount as the court deems equitable.
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Reimbursement of out-of-pocket expenses incurred in trustee duties.
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Compensation for time spent on Trust matters and award of attorney fees.
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Sanctions against the trustees for misconduct and any additional relief deemed appropriate under MCL 700.7901(1)(j).
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Any other order this Court finds just and proper.
Dated: ___________
Respectfully submitted,
[Signature Redacted]
STATE OF MICHIGAN
PROBATE COURT
COUNTY OF OAKLAND
ORDER
FILE NO. ______________
This matter came before the Court on ___________. Upon review and consideration, it is hereby ordered that the above petition is granted.
Date: ________________
Judge: _______________
Bar No.: ______________
CERTIFICATE OF SERVICE
I certify that on [ENTER DATE], copies of the foregoing Petition were sent to all necessary parties at their last known addresses.
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