Michigan Sample Letter for Payment - Request to Execute Receipt and Release
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FAQ
Many of the releases signed when estate distributions are made are called "Receipt, Release and Refunding Bond". It is a legal document in which you as the heir would acknowledge receipt of a distribution, release (no claims) against the personal administrator and then agree to refund or return the money if necessary.
The Refunding Bond and Release has a dual purpose: Refunding ? To refund to the Executor or Administrator out of his/her share of the estate his ratable part of any unpaid debts, owed by the testator or intestate, if there are no other assets to pay them.
Trustees benefit significantly from ?release.? In general, the ?release? clause protects the trustees against lawsuits. As a result, when it is enacted, a beneficiary may not be able to sue the trustee in the event of any damage.
A Receipt and Release Agreement is the means by which a beneficiary of an estate may acknowledge receipt of the property to which he is entitled, and agree to release the executor from any further liability with respect thereto.
A release provides protection to the trustee in a scenario where the beneficiary later decides to sue the trustee. The trustee can use the release to show that the beneficiary released the trustee of any legal claims the beneficiary might later bring.
The Receipt And Release will state that the beneficiary releases the Trustee from any and all claims, damages, legal causes of action, et cetera, known or unknown, regarding the administration of the Trust. Third, there may be unknown liabilities at the time of the distribution, most commonly income tax.
The Receipt And Release should provide that the beneficiary agrees to immediately refund to the Trustee part or all of the distributed Trust property and assets (or the cash proceeds resulting from the sale thereof) that may be requested in writing by the Trustee if it is subsequently determined that: (1) part or all ...
