MI HB6259

Removes the requirement that a charitable purpose be a "material purpose" of the trust from the definition of "charitable trust" in section 7103(c).

Revises the definition of "qualified trust beneficiary" in section 7103(g) to eliminate a two-tier classification system and simplify criteria for determining beneficiary status based on current or potential distributee status.

Adds section 7103(h) to exclude from "qualified trust beneficiary" status any person whose interest's probability of becoming possessory was so low or distant at trust creation that the settlor's primary intent appears to be avoiding a resulting trust.

Modifies section 7110(1) to allow charitable organizations "designated" (rather than "expressly named") in trust terms to qualify as qualified trust beneficiaries under specified distribution conditions.

Adds section 7110(2) with the same "remote contingency" exclusion for charitable organizations as qualified trust beneficiaries when their interest was unlikely to ever become possessory at the time of trust creation.