700.7501 Application; purposes. Sec. 7501. This part applies to a creditor’s or transferee’s claims with respect to spendthrift, support, and discretionary trusts. History: 1998, Act 386, Eff. Apr. 1, 2000 ;– Am. 2000, Act 54, Eff. Apr. 1, 2000 ;– Am. 2009, Act 46, Eff. Apr. 1, 2010 Popular Name: EPIC
700.7502 Spendthrift provision. Sec. 7502. (1) A spendthrift provision is valid and enforceable. (2) A term of a trust providing that the interest of a trust beneficiary is held subject to a “spendthrift trust,” or words of similar import, restrains both voluntary and involuntary transfer of the trust beneficiary’s interest. (3) Except as provided in […]
700.7503 Trust for support. Sec. 7503. (1) The interest of a trust beneficiary that is subject to a support provision may not be transferred and the trust property is not subject to the enforcement of a judgment until income or principal, or both, is distributed directly to the trust beneficiary. After a distribution to a […]
700.7504 Spendthrift provision or support provision; exceptions; “child” defined. Sec. 7504. (1) The interest of a trust beneficiary that is subject to a spendthrift provision, a support provision, or both may be reached in satisfaction of an enforceable claim against the trust beneficiary by any of the following: (a) A trust beneficiary’s child or former […]
700.7505 Discretionary trust; effect of standard; right of transferee or creditor. Sec. 7505. The transferee or creditor of the beneficiary of a discretionary trust provision does not have a right to any amount of trust income or principal that may be distributed only in the exercise of the trustee’s discretion, and trust property is not […]
700.7506 Creditor’s claim against settlor; “settlor” explained. Sec. 7506. (1) Whether or not the terms of a trust contain a spendthrift provision, the following rules apply: (a) During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor’s creditors. (b) After the death of a settlor, and […]
700.7507 Overdue distribution; “mandatory distribution” defined. Sec. 7507. (1) Whether or not a trust contains a spendthrift provision, a creditor or assignee of a trust beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the trust beneficiary […]
700.7508 Personal obligations of trustee. Sec. 7508. Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. History: 1998, Act 386, Eff. Apr. 1, 2000 ;– Am. 2000, Act 177, Imd. Eff. June 20, 2000 ;– Am. 2005, Act 204, Imd. Eff. Nov. 10, 2005 ;– […]
700.7509-700.7511 Repealed. 2009, Act 46, Eff. Apr. 1, 2010. Compiler’s Notes: The repealed sections pertained to secured claims, claims not due, contingent claims, liquidated claims, and counterclaims.Popular Name: EPIC
