Legal Question in Family Law in Michigan

My husband is named, along with his two brothers, as the beneficiary of an irrevocable trust that his parents set up in 1996. A 1.5 million dollar life insurance policy on my husbands parents is the major asset in the trust. (one parent has died, one is 72 years old presently. We are mid 40's) The trust allows payouts to the sons and/or spouses in 10/20,000 per year as allowed by tax limits, and they are notified any year the parents donate and have a right to withdrawal that each year for 30 days. If they dont claim that it goes into the trust and is used to pay the annual life insurance premium. We have only been notified one time of a 10,000 dollar gift and we did not access it. Presently, I am trying to write up my own divorce complaint and settlement. Custody we will share, retirement savings, income and earning ability are all relatively equal, (I make slightly more than him). I want the house, I have done all the major renovations, painting, remodeling, etc. to my taste over 14 years. I can afford the house. I used to have my business in the house and may go back to that arrangement when the children are old enough. I dont want the trust money, but does the fact that he has this large future interest in the trust affect the settlement of our current property? I am hoping that I could list his future interest in the trust money as part of his retirement portfolio and then I could claim having the house would balance that out and be my retirement money (in addition to what I have saved.
How does Michigan divorce law handle a future interest in a trust that will become effective at a future date. I dont know how to report all the relevant portions of the trust document, the trust goes on to the grandkids when the sons die. There is no monthly or yearly income from it now unless my husbands parents make one of those tax deductible 10,000 gifts, which I think theyve only done once in the life of the trust.
Other than this issue the separation and divorce seems fairly straightforward and we are agreeable over everything except the house. Thanks for any information and wisdom.

Asked on 3/31/10, 3:29 pm

Francois Nabwangu Wright Cantrell PLLC

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Please contact us for a free consultation we will need to review the paperwork. 877 887 9562

Answered on 4/06/10, 9:07 pm

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