Bill > HB4034

This bill amends the Uniform Statutory Rule Against Perpetuities Act to clarify and modify provisions related to property interests and powers of appointment. The bill makes several key changes, including updating language about how and when property interests are created, specifying exceptions to the rule against perpetuities, and adjusting the application of the law to certain trust-related transactions. Specifically, the bill modifies how nonvested property interests are determined, expands exemptions for certain types of property transfers (such as those arising from marital agreements, fiduciary powers, and support obligations), and introduces a nuanced approach to interests created under the Personal Property Trust Perpetuities Act. For interests subject to a "second power" (a term defined in the Personal Property Trust Perpetuities Act), the bill allows for a much longer perpetuities period of 360 years instead of the standard 90 years. The bill also clarifies that the law applies to nonvested property interests created after December 26, 1988, and provides courts with the ability to reform dispositions that might otherwise violate perpetuities rules, ensuring that the intent of the original property transfer is preserved as closely as possible.

Justice

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4034