Public Act 42 of 2009
Return to Probate Review Menu1. Amends the statute related to fraudulent conveyances by amending section MCL 566.131
2. Effective: April 1, 2010
3. Summary:
a. Amends the statute relating to fraudulent conveyances to specify exceptions to a provision under which a deed of gift, conveyance, transfer on assignment of property made in trust for the use of the person making the gift, conveyance, etc., is void against the person's creditors.Return to Probate Review Menub. Provides that the statute relating to fraudulent conveyances provision would not apply to, and the term "transfer" would not include, the creation of a trust by an individual if all of the following applied:
(1) The individual created the trust for the benefit of his or her spouse.c. Provides that the statute relating to fraudulent conveyances provision would not apply to a gift, conveyance, transfer, or assignment from a trust to a person who created the trust, and the term "transfer" would not include the disposing of or parting with an asset or interest in an asset held in trust to the person who created the trust, if all of the following applied:(2) The trust was treated as qualified terminable interest property under a section of the Internal Revenue Code (IRC).
(3) The individual retained a beneficial interest in the trust income and/or principal, and the beneficial interest followed the termination of the spouse's prior beneficial interest in the trust.
(1) The trust was an irrevocable trust for the benefit of third parties.(2) The trust was a grantor trust with regard to the person for income tax purposes under specific sections of the IRC.
(3) The trustee had the discretionary authority to reimburse or advance trust property to the person for taxes concerning income attributable to the trust property.
(4) The gift, conveyance, transfer, or assignment, or the disposing of or parting with the asset or interest, was the exercise by the trustee of that discretionary authority.
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Last updated 6-18-09
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