MI SB1010

Presumes a settlor intended to create an irrevocable life insurance trust (ILIT) if a trustee acquires a life insurance policy within 6 months of trust creation or if only cash, cash equivalents, or life insurance policies are held as trust assets before policy acquisition.

Exempts non-settlor trustees from duties under the prudent investor rule regarding acquisition, retention, and ownership of life insurance policies held by ILITs, including determining insurable interest, assessing policy suitability, and investigating insurance company financial strength.

Relieves non-settlor trustees, trust drafting attorneys, and ILIT creation consultants from liability to beneficiaries for losses related to life insurance policies, except in cases of fraud.

Excludes trustees or their affiliates who received commissions or payments from the life insurance policy issuer from the liability protections provided in the bill.

Applies retroactively to ILITs established before, on, or after the bill's effective date and to life insurance policies acquired before or after that date, unless the trust terms provide otherwise.