QUALIFIED DISPOTISIONS IN TRUST                                                      H.B. 5504 (H-1):

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 5504 (Substitute H-1 as reported without amendment)

Sponsor:  Representative Klint Kesto

House Committee:  Judiciary

Senate Committee:  Judiciary

CONTENT

The bill would amend the Uniform Fraudulent Transfer Act to do the following:

-- Specify that a qualified disposition would be fraudulent as to a creditor only if it were made with actual intent to hinder, delay, or defraud any creditor of the debtor.

-- Specify that an action could be brought under the Act with respect to a qualified disposition in the time provided under the Qualified Dispositions in Trust Act.

The bill is tie-barred to Senate Bill 597, which would enact the Qualified Dispositions in Trust Act to provide for the creation of irrevocable trusts whose assets could not be reached by creditors, subject to specific requirements and limitations.

MCL 566.31 et al.                                                       Legislative Analyst:  Suzanne Lowe

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  11-30-16                                                  Fiscal Analyst:  Ryan Bergan

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.