Legal Question in Wills and Trusts in Michigan

My parents estate, done with a trust in Michigan, has 4 pieces of real estate in Florida that are being sold/transfered to 4 beneficiaries. There are 7 beneficiaries

(all siblings). The executor and co-executor are among the 4 purchasing the parcels. Since no closing costs were incurred, the executor and co are selling the realestate at a less than market value. I believe their thinking is that the estate would only have gotten that amount if we had to sell outside the beneficiaries. These parcels are vacation spots and there would be no issue selling these in an open market today. The executor and co are not doing the estate a favor by agreeing to purchase them. Other beneficiaries want them also, but have stepped back with hopes of settling everything peacefully.

My question is, are the executors correct?

Is the benefit of not having to pay closing costs a benefit to the buyers or is it a benefit to the seller(estate)? If this goes to a vote among the siblings the 4 buyers out weight the 3 non buyers.


Asked on 7/28/12, 4:07 am

1 Answer from Attorneys
William Stern William Stern, P.C.

These types of issues always are a problem with trusts because there is no direct court supervision. If you feel that something is being done improperly, you could file suit to challenge the trustees authority. However, of course, you would not only incur the wrath of the purchasing siblings, but even the ones who agree with you because they would be aggravated that you were starting family disharmony. You would probably be out there alone. However, from the sound of it, the court would order the properties to be sold on the market, they would sell and the estate would net the same amount. You'd probably gain nothing, some real estate salespeople would make money and the family would not be talking to each other. Also, if you figure it out, it may not add up to that much difference anyway because so many siblings are dividing the money.

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Answered on 7/28/12, 5:46 am


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