700.2701 Scope. Sec. 2701. In the absence of a finding of a contrary intention, the rules of construction in this part control the construction of a governing instrument. The rules of construction in this part apply to a governing instrument unless the application of a particular section is limited by its terms to a specific […]
700.2702 Requirement of survival by 120 hours. Sec. 2702. (1) For the purposes of this act, except as provided in subsection (4), an individual who is not established by clear and convincing evidence to have survived an event, including the death of another individual, by 120 hours is considered to have predeceased the event. (2) […]
700.2703 Protection of payors and other third parties. Sec. 2703. (1) Except as otherwise provided in this section, a payor or other third party is not liable for having made a payment or transferred an item of property or another benefit to a beneficiary designated in a governing instrument who, under section 2702, is not […]
700.2704 Protection of bona fide purchasers; personal liability of recipient. Sec. 2704. (1) Section 2702 does not obligate a person who purchases property for value and without notice, or who receives a payment or other item of property in partial or full satisfaction of a legally enforceable obligation, to return the payment, item of property, […]
700.2705 Choice of law as to meaning and effect of governing instrument. Sec. 2705. The meaning and legal effect of a governing instrument other than a trust are determined by the local law of the state selected in the governing instrument, unless the application of that law is contrary to the provisions relating to the […]
700.2706 Power of appointment; meaning of specific reference requirement. Sec. 2706. If a governing instrument creating a power of appointment expressly requires that the power be exercised by a reference, an express reference, or a specific reference to the power or its source, it is presumed that the donor’s intention, in requiring that the donee […]
700.2707 Class gifts construed to accord with intestate succession. Sec. 2707. (1) An adopted individual or an individual born out of wedlock, and his or her respective descendants if appropriate to the class, are included in class gifts and other terms of relationship in accordance with the rules for intestate succession. Terms of relationship that […]
700.2708 Definitions regarding beneficiary designation. Sec. 2708. As used in this section and sections 2709 to 2712: (a) “Alternative beneficiary designation” means a beneficiary designation that is expressly created by the governing instrument and, under the terms of the governing instrument, can take effect instead of another beneficiary designation on the happening of 1 or […]
700.2709 Substitute gift. Sec. 2709. If a beneficiary fails to survive the decedent and is a grandparent, a grandparent’s descendant, or the decedent’s stepchild, the following apply: (a) Except as provided in subdivision (d), if the beneficiary designation is not in the form of a class gift and the deceased beneficiary leaves surviving descendants, a […]
700.2710 Multiple substitute gifts. Sec. 2710. (1) If, under section 2709, substitute gifts are created and not superseded with respect to more than 1 beneficiary designation and the beneficiary designations are alternative beneficiary designations, one to the other, the determination of which of the substitute gifts takes effect is resolved as follows: (a) Except as […]
700.2711 Protection of payors. Sec. 2711. (1) Except as otherwise provided in this section, a payor or other third party is not liable for making a payment under the terms of a beneficiary designation. Payment made before the actual receipt of a written notice of a claim to a substitute gift discharges the payor or […]
700.2712 Protection of bona fide purchasers; personal liability of recipient. Sec. 2712. (1) A person who purchases property for value and without notice, or who receives a payment or other item of property in partial or full satisfaction of a legally enforceable obligation, is not obligated to return the payment, item of property, or benefit […]
700.2713 Definitions for survivorship with respect to future interests under terms of trust. Sec. 2713. As used in this section and sections 2714 to 2716: (a) “Alternative future interest” means an expressly created future interest that can take effect in possession or enjoyment instead of another future interest on the happening of 1 or more […]
700.2714 Survivorship required for gift under trust; substitute gift; applicability of subsection (1). Sec. 2714. (1) Subject to subsection (2), a future interest under the terms of a trust is contingent on the beneficiary surviving the distribution date. If a beneficiary of a future interest under the terms of a trust fails to survive the […]
700.2715 Multiple substitute gifts. Sec. 2715. (1) If, under section 2714, substitute gifts are created and not superseded with respect to more than 1 future interest and the future interests are alternative future interests, one to the other, the determination of which of the substitute gifts takes effect is resolved as follows: (a) Except as […]
700.2716 No substitute taker; lapse. Sec. 2716. (1) Except as provided in subsection (2), if, after the application of sections 2714 and 2715, there is no surviving taker, the property passes in the following order: (a) If the trust is created in a nonresiduary devise in the transferor’s will or in a codicil to the […]
700.2717 Class gifts to “descendants,”“issue,” or “heirs of the body”; form of distribution if none specified. Sec. 2717. If a class gift in favor of “descendants”, “issue”, or “heirs of the body” does not specify the manner in which the property is to be distributed among the class members, the property is distributed among the […]
700.2718 Representation; per capita at each generation; per stirpes. Sec. 2718. (1) If an applicable statute or a governing instrument calls for the property to be distributed “by representation” or “per capita at each generation”, the property is divided into as many equal shares as there are surviving descendants in the generation nearest to the […]
700.2719 Worthier-title doctrine abolished. Sec. 2719. The doctrine of worthier title is abolished as a rule of law and as a rule of construction. Language in a governing instrument describing the beneficiaries of a disposition as the transferor’s “heirs”, “heirs at law”, “next of kin”, “distributees”, “relatives”, or “family”, or language of similar import, does […]
700.2720 Interests in “heirs”. Sec. 2720. If an applicable statute or a governing instrument calls for a present or future distribution to or creates a present or future interest in a designated individual’s “heirs”, “heirs at law”, “next of kin”, “relatives”, or “family” or language of similar import, the property passes to those persons, including […]
