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rdr6_state

Trust Administration

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I am in state of Michigan.  If a bank has been assigned a Temp Trustee under a Probate Court Order, and given specific instructions, can another Court Order come along afterwards from another jurisdiction and attempt to seize funds.  Do Court Orders work in the order received or can one trump the other, does 1st Court Order take precedent over any subsequent Orders??  Thank-you for your time.  

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can another Court Order come along afterwards from another jurisdiction and attempt to seize funds.

 

I've never heard of an order having the ability to "seize funds."  Rather than asking this question in abstract terms, it would be far better if you explained exactly what's happening in the situation that has prompted you to post here.  With that said, I assume you mean that someone is attempting to enforce an order issued in a state other than Michigan against assets owned by the trust.  Correct?  If so, orders and judgments from courts in State X are enforceable only in State X.  If someone wants to enforce a State X order in State Y, that person would have to go to a court in State Y and ask for a State Y order or judgment based on the State X order or judgment.

 

 

 

Do Court Orders work in the order received or can one trump the other, does 1st Court Order take precedent over any subsequent Orders?

 

Impossible to answer in the abstract.

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Case is such:  Trust was placed under a protective order Mid 2014 to protect assets (assign a [bank] Temp Trustee, and give instructions with final item distribute assets to all beneficiaries based on the provisions in the Trust).  No distribution has occurred as of this writing.  Along comes a IW Order dated Feb., 2015 on a beneficiary for past due CS arrearages.  Which order takes precedent??

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Ultimately the question is whether the out-of-state party with an out-of-state order can eventually get at the $$$ due to a given beneficiary to pay a judgment.  The answer is "yes".  Esp. when it comes to child support, I suspect you'll find that the trustee won't cough up dough directly to a given beneficiary unless the child support-related order goes away.  The beneficiary trying to compel the trustee to cough up dough to him/her directly won't likely meet with a sympathetic ear in the probate court if the child support is owed, and it'll likely let the trustee sit on that money until the matter's sorted out.

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No, you don't get it.  The two orders deal with entirely different issues and different entities.  One protects the trust's property.  The other deals with what happens to the trust's assets as they leave the trust.  Imagine, if you will, a scenario where the trustee hands over the money from the trustee in a stack of dollar bills.  He puts it in your hands and a Sheriff comes up behind you and take it out of your hands.  You would not be able to argue that the stack of bills is protected by the trust protective order, could you?  The only differrence is that the money is in the form of a check, not a stack of bills.

 

If I were the trustee, I might very well finesse the whole thing by cutting a separate check in the amount of the child support arrearage, payable to the clerk of the court, and send it to the court that issued the withholding order.  It is called an interpleader.  Let them sort it out.

 

No matter how you cut it, you should not expect to get that money.

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