u/cantareSF

Under Michigan law, my late parents created a living trust for all their assets. I am now trustee. Their conforming wills name me personal representative of the estate (with broad powers) and convey all their property into the trust, as does the trust document. The trust is now irrevocable.

I'm doing fine as trustee, but poorly as executor because I can't seem to open an estate account to handle small checks made out to them personally.

Trust custodian won't deposit them, and every bank wants a court appointment document or letters testamentary from the same probate process the trust was created to avoid. They won't accept the will and trust as proof of my authority. I am trying to have such checks reissued to name the trust, but some (such as state tax refunds) can't be, AFAIK.

Is there a way out of this limbo other than probate court? In Michigan I know one can do a small estate affidavit. I'd always assumed this didn't apply because the sum of their assets is above the statutory ceiling. But if the residue of the estate were considered separate from the trust, then it would certainly qualify. I don't know if that's kosher, though.

Parents had a trust, irrevocable upon their deaths. State of Michigan, trust is see-through with several named beneficiaries, plus charities.

Mom had an IRA and a 403b annuity, with the trust named as beneficiary. She was taking RMDs.

I would have preferred a direct transfer, but the custodian issued lump sum paper checks instead. I want to deposit these with a new custodian who will create inherited IRAs for the beneficiaries.

I understand the recipients will have to take RMDs, empty the accounts in 10 years, and pay tax, etc. But can all this happen without incurring a taxable distribution to the trust itself?