SB-0386, As Passed Senate, June 4, 2009

SENATE BILL No. 386

March 17, 2009, Introduced by Senator KUIPERS and referred to the Committee on Judiciary.

     A bill to amend 1967 PA 224, entitled

"Powers of appointment act of 1967,"

by amending section 13 (MCL 556.123).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 13. (1) If the a donee has a general power of

appointment, any interest which that the donee has power to appoint

or has appointed is to be treated as property of the donee for the

purposes of satisfying claims of his the donee's creditors, as

provided in this section.

     (2) If the a donee has an unexercised general power of

appointment and he the donee can presently exercise such a power,

any creditor of the donee may by appropriate proceedings reach any

interest which that the donee could appoint, to the extent that the

donee's individual assets are insufficient to satisfy the

creditor's claim. If the donee has exercised the power, the

Senate Bill No. 386 as amended June 3, 2009

creditor can reach the appointed interests to the same extent that

under the law relating to fraudulent conveyances he the creditor

could reach property which that the donee has owned and

transferred.

     (3) If the a donee has at the time of his or her death a

general power of appointment, whether or not he or she exercises

the power, the executor personal representative or other legal

representative of the donee may reach on behalf of creditors any

interest which that the donee could have appointed to the extent

that the claim of any a creditor has been filed and allowed in the

donee's estate but not paid because the assets of the estate are

insufficient.

     (4) Under a general assignment by the a donee for the benefit

of his the donee's creditors, the assignee may exercise any right

which that a creditor of the donee would have under subsection (2).

     (5) A purchaser without actual notice and for a valuable

consideration of any interest in property, legal or equitable,

takes the interest free of any rights which that the donee's estate

or a creditor of the donee might have has under this section.

     (6) If more than 1 person is the donee of a general power of

appointment, it shall be presumed that the interests of the donees

in the property subject to the power is are equally owned among

them unless the creating instrument indicates otherwise.

     (7) The lapse, release, waiver, or disclaimer of a power of

appointment given to a donee by a donor is not a gift, conveyance,

transfer, or assignment of property by the donee.

     [Enacting section 1. This amendatory act takes effect April 1, 2010.]

     Enacting section [2]. This amendatory act does not take effect

unless Senate Bill No. 387                                    

            of the 95th Legislature is enacted into law.