What happens to our Membership in Trust when we pass away?

Since our prior post The Future Of Your Membership which discussed having your Sandy Pines membership owned by your living trust, we have received questions about what happens to your membership in Trust after you pass away. The definition of “Trust Membership” on page 8-9 of the handbook states that “the death of the Grantor … will be treated as the death of the Member(s) for purposes of these Rules and Bylaws and the Sandy Pines Membership Agreement.” Looking to Article II, Section 7 of the Bylaws, it states that upon the death of a member, the membership may be transferred by testamentary disposition or intestate succession.

Sandy Pines Member Service/Administration must be notified of the death of the last surviving Member(s) in a timely manner. No later than within 60 days subsequent to the account due date of the most recent Sandy Pines Billing Statement issued immediately following the death.

When it comes to the death of a Member whose membership was owned in Trust (or death of the survivor in a joint trust), the Trustee of the trust will be considered the only authorized representative of the trust Membership and exercises the rights of the trust membership only in his/her capacity as Trustee of the trust (not individually). Sandy Pines will require an updated and valid Certificate of Trust from the Trustee establishing his/her authority under the Trust agreement and Michigan law.

If you have questions, please contact Kelli in the Administration Office.

Leave a Comment