MI HB4408

Clarifies that trustees exercising discretionary powers to appoint trust property to a second trust may only grant special or general powers of appointment to beneficiaries who are permissible appointees of the trustee's distribution power over the first trust

Updates language throughout to modernize statutory phrasing, replacing "provided that" with "if," "upon" with "on," and "shall not" with "does not"

Replaces the phrase "the effective date of the amendatory act that added this section" with the specific date of December 28, 2012, to clarify when the codification of common law became effective

Modifies rules for determining the period during which vesting of future interests may be postponed by removing references to "suspension" and adding that a trust created by exercising a power of appointment is considered created when the power is irrevocably exercised or when a revocable exercise becomes irrevocable

Renumbers subsection (4) to subsection (5) in section 14 to accommodate the new provision regarding trust creation timing