MI SB0032

Adds section 7114 to the Michigan Trust Code to define when a trustee has insurable interest in a life insurance policy owned by the trust or trustee acting in a fiduciary capacity.

Requires that on the policy issue date, the insured must be either the trust settlor or an individual in whom the settlor had (or would have had) an insurable interest.

Requires that life insurance proceeds primarily benefit trust beneficiaries who either have an insurable interest in the insured's life or a substantial interest of love and affection in the insured's continuation.

Specifies that beneficiaries with love and affection interests must be related to the insured within the third degree by blood or affinity under civil law, or be stepchildren of the insured.

Effective February 11, 2014, contingent upon the enactment of Senate Bill No. 31 of the 97th Legislature.