VESTING OF FUTURE INTERESTS                                                                                         H.B. 4619 (H-2):

                                                                                                                                                                                SUMMARY OF BILL

                                                                                                                                                REPORTED FROM COMMITTEE

House Bill 4619 (Substitute H-2 as reported without amendment)

Sponsor:   Representative Jim Haadsma

House Committee:   Financial Services

Senate Committee:   Judiciary and Public Safety

CONTENT

The bill would amend the Personal Property Trust Perpetuities Act to do the following:

 --     Create the "anti-Delaware-tax-trap" provision as an exception to provisions regarding the determination of the period during which vesting of a future interest in property may be postponed.

 --     Specify that, for the purposes of Section 4 of the Act (which prescribes the applicability of the Act to certain personal property), a trust that was created by the exercise of a power of appointment would be created when it had been irrevocably exercised or when a revocable exercise became irrevocable.

MCL 554.92-554.94                                                             Legislative Analyst:   Stephen P. Jackson

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:   6-29-22                                                                 Fiscal Analyst:   Michael Siracuse

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.