Bill Text: MI HB5010 | 2009-2010 | 95th Legislature | Engrossed

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Bill Title: Probate; trusts; uniform statutory rule against perpetuities; revise to reflect limitation of the personal property trust perpetuities act to certain property. Amends sec. 5 of 1988 PA 418 (MCL 554.75).

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-12-17 - Referred To Committee On Judiciary [HB5010 Detail]

Download: Michigan-2009-HB5010-Engrossed.html

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HB-5010, As Passed House, December 16, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5010

 

May 26, 2009, Introduced by Reps. Meadows and Schuitmaker and referred to the Committee on Judiciary.

 

     A bill to amend 1988 PA 418, entitled

 

"Uniform statutory rule against perpetuities,"

 

by amending section 5 (MCL 554.75), as amended by 2008 PA 149.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5. (1) Section 2 does not apply to any of the following:

 

     (a) A nonvested property interest or a power of appointment

 

arising out of a nondonative transfer, except a nonvested property

 

interest or a power of appointment arising out of a premarital or

 

postmarital agreement; a separation or divorce settlement; a

 

spouse's election; a similar arrangement arising out of a

 

prospective, existing, or previous marital relationship between the

 

parties; a contract to make or not to revoke a will or trust; a

 

contract to exercise or not to exercise a power of appointment; a

 

transfer in satisfaction of a duty of support; or a reciprocal

 

transfer.

 

     (b) A fiduciary's power relating to the administration or

 

management of assets, including the power of a fiduciary to sell,

 

lease, or mortgage property, and the power of a fiduciary to

 

determine principal and income.

 

     (c) A power to appoint a fiduciary.

 

     (d) A discretionary power of a trustee to distribute principal

 

before termination of a trust to a beneficiary having an

 

indefeasibly vested interest in the income and principal.

 

     (e) A property interest, power of appointment, or any other

 

arrangement that was not subject to the common-law rule against

 

perpetuities or is excluded by another statute.

 

     (f) Except as provided in subsection (2), an interest in, or

 

power of appointment over, personal property held in a trust that

 

is either revocable on or created after the effective date of to

 

which the personal property trust perpetuities act, 2008 PA 148,

 

MCL 554.91 to 554.94, applies.

 

     (2) Section 2 is applicable to an interest in, or power of

 

appointment over, to which the personal property held in trust

 

perpetuities act, 2008 PA 148, MCL 554.91 to 554.94, applies if the

 

interest or power was created, or property was made subject to the

 

interest or power, by the exercise of a second power. If section 2

 

is applicable to an interest or power under this subsection, it

 

applies only to the extent of the exercise of the second power, and

 

instead of using a period of 90 years to determine whether section

 

2(1)(b), (2)(b), or (3)(b) is satisfied, or whether to reform a

 

disposition under section 4, a period of 360 years shall be used.

 

     (3) As used in this section, "second power" means that term as

 

defined in section 2 of the personal property trust perpetuities

 

act, 2008 PA 148, MCL 554.92.