MI SB0980

Amends Michigan's law on powers of appointment by revising definitions and exercise requirements in the 1967 Property Powers Act (MCL 556.112-556.130)

Adds new Section 5a authorizing trustees of irrevocable trusts with discretionary distribution powers to appoint trust property to a second trust, subject to specified conditions protecting beneficiary interests and tax qualification status

Modifies rules for failed special power exercises to specify that property passes according to the original trust terms if the power was created through exercise of a discretionary power under the new Section 5a

Clarifies that when a second power of appointment is created by exercising a presently exercisable general power, the second power's creation date is the exercise date rather than the original power's creation date, affecting perpetuities calculations

Applies EPIC Section 2603 rules when a testamentary power of appointment exercise fails due to the appointee's prior death