When a person finds out that they are a beneficiary of a trust, a lot of questions might come to mind. Understanding your rights if you have been named as a trust beneficiary can help you to ensure that the trust is operating in a manner that will continue to provide you with the intended benefits. Michigan residents might be interested to learn what rights beneficiaries of trusts have.
Trust beneficiaries have the right get accounts of the investments made by the trusts. They also should receive an annual trust report. These financial statements give you an inside look into the trust. This information also gives you the opportunity to make sure that the trustee is handling the assets of the trust in an appropriate manner.
There is a chance that when you look into the trust's finances, you might discover that the assets aren't being handled as well as they could. If this is the case, as a beneficiary of the trust, you have the right to sue the trustee or to ask for the trustee to be replaced.
When you exercise either of those two options, you are getting the opportunity to protect the assets in the trust while holding the trustee accountable for what happens to the trust.
There aren't any excuses for a trustee to mishandle a trust. Anyone who is creating a trust should make sure to appoint a trustworthy trustee to minimize the likelihood of mismanagement. Beneficiaries of trusts should make sure to always keep a close eye on the trust's assets so they can catch problems while they are small and manageable.
Source: Northwest Herald, "Dooley: Trust beneficiaries have rights, responsibilities" Timothy J. Dooley, May. 28, 2014