October 15, 2008, Introduced by Reps. Condino, Elsenheimer, Bieda, LaJoy, David Law, Hildenbrand 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 the
personal
property trust perpetuities act May 28, 2008.
(2) Section 2 is applicable to an interest in, or power of
appointment
over, personal property held in trust 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.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6539(request no.
07696'08) of the 94th Legislature is enacted into law.