Bill Text: MI SB0721 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Property: personal; determining the period of vesting for future interests; modify. Amends sec. 3 of 2008 PA 148 (MCL 554.93) & adds sec. 2a.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-12-03 - Referred To Committee Of The Whole With Substitute (s-1) [SB0721 Detail]
Download: Michigan-2019-SB0721-Introduced.html
SENATE BILL NO. 721
January 15, 2020, Introduced by Senator LUCIDO
and referred to the Committee on Judiciary and Public Safety.
A bill to amend 2008 PA 148, entitled
"Personal property trust perpetuities act,"
by amending section 3 (MCL 554.93), as amended by 2012 PA 484, and by adding section 2a.
the people of the state of michigan enact:
Sec. 2a. (1) Except as provided in
subsection (2), the period during which the vesting of a future interest in
property may be postponed by the exercise of a second power is determined under
the uniform statutory rule against perpetuities by reference to the time of the
creation of the power of appointment that subjected property to, or created,
the second power. Except as provided in subsection (2), a nonvested interest, a
general power of appointment not presently exercisable because of a condition
precedent, or a nongeneral or testamentary power of appointment created, or to
which property is subjected, by the exercise of the second power is invalid, to
the extent of the exercise of the second power unless the interest or power
satisfies the uniform statutory rule against perpetuities measured from the
time of the creation of the power of appointment that subjected property to, or
created, the second power.
(2) To the extent a second power is created or has property subjected to it by exercise of a first power, subsection (1) does not apply to interests or powers created by exercise of the second power if both of the following apply:
(a) The first power was not itself created or augmented by the exercise of either a first power or a second-order fiduciary power.
(b) The instrument exercising the first power to subject property to or create the second power expressly declares that subsection (1) does not apply to interests and powers created by exercise of the second power. For purposes of the declaration described in this subdivision, subsection (1) may be referred to as the anti-Delaware-tax-trap provision of this act.
Sec. 3. (1) Except as provided in subsection (3), an An interest in, or power of appointment
over, personal property held in trust is not invalidated by a rule against any
of the following:
(a) Perpetuities.
(b) Suspension of
absolute ownership.
(c) Suspension of the
power of alienation.
(d) Accumulations of
income.
(2) Except as provided in subsection
(3), all All of
the following may be indefinitely suspended, postponed, or allowed to go on
with respect to personal property held in trust:
(a) The vesting of a
future interest.
(b) The satisfaction of a
condition precedent to the exercise of a general power of appointment.
(c) The exercise of a
nongeneral or testamentary power of appointment.
(d) Absolute ownership.
(e) The power of
alienation.
(f) Accumulations of
income.
(3) The period during which the vesting of a future interest in property may be postponed by the exercise of a second power shall be determined under the uniform statutory rule against perpetuities by reference to the time of the creation of the power of appointment that subjected property to, or created, the second power. A nonvested interest, general power of appointment not presently exercisable because of a condition precedent, or nongeneral or testamentary power of appointment created, or to which property is subjected, by the exercise of the second power is invalid, to the extent of the exercise of the second power, unless the interest or power satisfies the uniform statutory rule against perpetuities measured from the time of the creation of the power of appointment that subjected property to, or created, the second power.
