In our previous blog post, Silent Trusts Have Come to Michigan, we shared some situations in which a settlor and their beneficiaries could benefit from the creation of a “silent trust.” In this type of trust arrangement, the trustee is not required to disclose information about an irrevocable trust or its existence to the trust’s beneficiaries during a non-disclosure period of up to 25 years.
While a silent trust could solve issues for some settlors, this trust arrangement comes with some complexities that must be considered. Additionally, even with the best-laid plans, there is the potential for an inadvertent early disclosure of the trust’s existence, which can create anger and hurt feelings for beneficiaries.
Silent Trust Issues to Consider
Silent Trusts are Tricky But Now Possible
While a silent trust might be more challenging to administer, it could be an excellent solution for a trust settlor in the right situation. If you are interested in exploring the creation of a silent trust, contact your Warner estate planning attorney or Sara Nicholson.