SB-0032, As Passed House, January 28, 2014
January 16, 2013, Introduced by Senator SCHUITMAKER and referred to the Committee on Judiciary.
A bill to amend 1998 PA 386, entitled
"Estates and protected individuals code,"
(MCL 700.1101 to 700.8206) by adding section 7114.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7114. A trustee of a trust has an insurable interest in
the life of an individual insured under a life insurance policy
that is owned by the trustee of the trust acting in a fiduciary
capacity or that designates the trust itself as the owner if, on
the date the policy is issued, both of the following are true:
(a) The insured is 1 of the following:
(i) A settlor of the trust.
(ii) An individual in whom a settlor of the trust has, or would
have had if living at the time the policy was issued, an insurable
interest.
(b) The life insurance proceeds are primarily for the benefit
of 1 or more trust beneficiaries that have 1 of the following:
(i) An insurable interest in the life of the insured.
(ii) A substantial interest engendered by love and affection in
the continuation of the life of the insured and, if not already
included under subparagraph (i), who are 1 of the following:
(A) Related within the third degree or closer, as measured by
the civil law system of determining degrees of relation, either by
blood or affinity, to the insured.
(B) Stepchildren of the insured.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 31
of the 97th Legislature is enacted into law.