MI HB4863

Modifies trustee authority to exercise discretionary distribution powers by appointing trust property to a second trust, provided beneficiaries of the second trust are limited to permissible appointees of the first trust.

Clarifies that a second trust created through power of appointment exercise may include special or general powers of appointment for beneficiaries and provisions for assets to revert to first trust beneficiaries under specified conditions.

Amends perpetuities provisions to establish that finite periods during which vesting may be postponed by power of appointment exercise are determined under the personal property trust perpetuities act (2008 PA 148) or uniform statutory rule against perpetuities (1988 PA 418) for personal property trusts created or made revocable on or after May 28, 2008.

Revises language regarding perpetuities calculations to replace "suspended or postponed" with "postponed" and clarifies when second powers of appointment are deemed created based on whether the first power is presently exercisable and general.

Takes effect only upon enactment of House Bill No. 4864 of the 102nd Legislature.