No. 23-1306

Linda Smith, et al. v. David R. Heilman, Trustee of the Ralph A. Siddell Living Trust, et al.

Lower Court: Michigan
Docketed: 2024-06-17
Status: Denied
Type: Paid
Response Waived
Tags: beneficiary-rights estates-and-trusts fourteenth-amendment limitations-period notice-requirements statutory-interpretation trust-validity trust-validity-challenges trustee-duties trustee-duty
Key Terms:
DueProcess JusticiabilityDoctri
Latest Conference: 2024-09-30
Question Presented (AI Summary)

Whether the Michigan Courts committed plain legal error construing and applying §700.7604(1)(b) by declining to apply the relevant statutory definitions to claim a trustee owes no duty to include with the notice under §7604(1)(b), all amendments to a trust that describe or affect a beneficiary's interest in the trust, in order to trigger the six-months limitation period to bar a beneficiary's claims to contest the validity of the trust

Question Presented (OCR Extract)

QUESTIONS PRESENTED The Allegan County Probate Court derives its limited jurisdiction and power from statutory authority under the Estates and Protected Individuals Code (“EPIC”) concerning, among other issues, the construction, administration and validity of estates of decedents and trusts. Section 700.7604(1) provides: .“GQ) A person may commence a_ judicial proceeding to contest the validity of a trust that was revocable at the settlor’s death within the earlier of the following: (a) Two years after the settlor's death. (b) Six months after the trustee sent the person a notice informing the person of all of the following: @) The trust's existence. Gi) The date of the trust instrument. Gii) The date of any amendments known to the trustee. (iv) A copy of relevant portions of the terms of the trust that describe or affect the person's interest : in the trust, if any. (v) The settlor's name. (vi) The trustee's name and address. (vii) The time allowed for commencing a ; proceeding.” (Emphasis added.) Words or phrases bolded and underlined are defined by statute. ii By law,} §700.7604(1)(b) requires the application of the following relevant statutory definitions: a. §700.1104(m) ~ “Governing instrument” b. §700.1106(u) — “Proceeding” c. §700.1107(k) — “Terms of the trust” d. §700.1107(n) “Trust” e. §700.7103(m) — “Trust instrument” After application of the definitions, the statute is to be liberally construed.2 The questions before this Court are: 1. Whether the Michigan Courts committed plain legal error construing and applying §700.7604(1)(b) by declining to apply the relevant statutory definitions of §700.7103(n), §700.1104(m), §700.1106(u), §700.1107(k), §700.1107(n), and narrowly construing the statute, to claim a trustee owes no duty to include with the notice under §7604(1)(b), all amendments to a trust that describe or affect a beneficiary’s interest in the trust, in order to trigger the six-months limitation period to bar a beneficiary’s claims to contest the validity of the trust. 2. Whether the Michigan Courts’ failure to enforce a trustee’s affirmative duty to disclose all material facts for the beneficiaries to protect their interests under §700.7814(1) and §700.7814(2)(a) to (c) violates a beneficiary’s rights to equal protection of laws and due 1 §700.1102 2 §700.1201 iii process under the Fourteenth Amendment, §1 of the U.S. Constitution. 8. Whether the Michigan Courts committed plain legal error by failing to enforce §700.1205(3) that provides two year statutory tolling after a party discovers fraud was perpetrated in connection with a proceeding or in a statement filed under EPIC, and to avoid or circumvent the provisions or purposes of EPIC, providing a person injured by the fraud relief against the perpetrator of the fraud or restitution from a person that benefited from the fraud, whether innocent or not. 4. Whether §700.7802(2) provides a qualified trust beneficiary standing to contest the validity of a trust, or redress a trustee’s fraud and circumvention of duty, perjury in court proceedings, and embezzlement, notwithstanding the type or amount of the beneficiary's interest under the trust.

Docket Entries

2024-10-07
Petition DENIED.
2024-07-17
DISTRIBUTED for Conference of 9/30/2024.
2024-07-05
Supplemental brief of petitioners Linda Smith, et al. filed. (Distributed)
2024-06-24
Waiver of right of respondent David R. Heilman, Trustee of the Ralph A. Siddell Living Trust, et al. to respond filed.
2024-05-28
Petition for a writ of certiorari filed. (Response due July 17, 2024)

Attorneys

David R. Heilman, Trustee of the Ralph A. Siddell Living Trust, et al.
Angela M. CaulleyMiller Johnson, Respondent
Angela M. CaulleyMiller Johnson, Respondent
Linda Smith, et al.
Linda Smith — Petitioner
Linda Smith — Petitioner