Monday, November 11, 2013
James P. Spica, (Partner at Dickinson Wright PLLC) recently published an article entitled, Split to Last: Longevity Planning For Tax Advantaged Trusts Under a New Statutory Decanting Regime in Michigan, 48 Real Prop. Tr. & Est. L.J. 35-81 (2013). Provided below is the introduction:
Applicability of Michigan’s perpetuities reform is simply a function of the vintages of trusts subject to Michigan law: except for certain personal property previously held in trusts that were irrevocable on September 25, 1985, Michigan’s Personal Property Trust Perpetuities Act of 2008 (PPTPA) applies to interests in personal property held in any trust that was revocable on, or created after, May 28, 2008.1 It is a salient feature of Michigan’s new, tripartite statutory decanting regime the subject of this Article that the receptacle trust to which trust assets are distributed pursuant to a “decanting” may be a new trust created by the trustee of the decanted trust as of the time of decanting and that, in any case, it is the vintage of the receptacle or distribution trust that determines the period during which the vesting of future interests in the assets of that trust may be suspended or postponed under Michigan law.