MI HB4618

Amends the Uniform Fraudulent Transfer Act (1998 PA 434) to add definitions related to qualified dispositions in trust, including "qualified disposition" and "qualified trustee" as defined in the Qualified Dispositions in Trust Act (2016 PA 330).

Modifies the definition of "transfer" to exclude dispositions of trust assets back to the person who created the trust when specific conditions are met, including that the trust is irrevocable, a grantor trust for income tax purposes, and the trustee has discretionary authority to reimburse trust property for taxes.

Changes the burden of proof for qualified disposition claims from preponderance of the evidence to clear and convincing evidence, and limits creditors to challenging qualified dispositions only if made with actual intent to hinder, delay, or defraud creditors.

Establishes location rules for qualified trustees, including those subject to supervision by the Department of Insurance and Financial Services, Federal Deposit Insurance Corporation, or similar federal regulators, for determining jurisdiction over fraudulent transfer claims.

Takes immediate effect upon passage; approved by the Governor on July 19, 2022.