ESTATES AND PROTECTED INDIVIDUALS CODE
Act 386 of 1998
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 sections 7504, 7506, and 7507, the trust beneficiary's interest in a trust may not be transferred in violation of a valid spendthrift provision and trust property is not subject to enforcement of a judgment until distributed directly to the trust beneficiary.
(4) Notwithstanding the existence of a spendthrift provision in the terms of the trust, a trustee is not liable to the beneficiaries of the trust for making a distribution to which a trust beneficiary is otherwise entitled pursuant to the direction of the trust beneficiary.
History: 1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2005, Act 204, Imd. Eff. Nov. 10, 2005 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010
PopularName Notes:
EPIC
Notes of Decisions
In re Theodora Nickels Herbert Trust, 844 N.W.2d 163 (Mich. Ct. App. 2013).
· cites it 2× “The last sentence is the heart of the spendthrift provision, precluding “any attempted sale, anticipation, assignment or pledge of any of the funds or property held in trust or any part thereof, or the income therefrom by the beneficiaries .”
Kohut v. Lois & Richard Lewiston Living Trust (In re Lewiston), 532 B.R. 36 (Bankr. E.D. Mich. 2015).
· cites it 5× “7502(3) provides that “the trust beneficiary’s interest in a trust may not be transferred in violation of a valid spendthrift provision and trust property is not subject to enforcement of a judgment until distributed directly to the trust beneficiary.”
Jones v. Jones (Mass. App. Ct. 2023).
“" See Mich. Comp. Laws § 700.7103 (j) ("'Spendthrift provision' means a term of a trust that restrains either the voluntary or involuntary transfer of a trust beneficiary's interest").”
— Mich. Comp. Laws § 700.7502(1) — 1 case
Kohut v. Lois & Richard Lewiston Living Trust (In re Lewiston), 532 B.R. 36 (Bankr. E.D. Mich. 2015).
“7502(3) provides that “the trust beneficiary’s interest in a trust may not be transferred in violation of a valid spendthrift provision and trust property is not subject to enforcement of a judgment until distributed directly to the trust beneficiary.”
— Mich. Comp. Laws § 700.7502(2) — 1 case
In re Theodora Nickels Herbert Trust, 844 N.W.2d 163 (Mich. Ct. App. 2013).
“The last sentence is the heart of the spendthrift provision, precluding “any attempted sale, anticipation, assignment or pledge of any of the funds or property held in trust or any part thereof, or the income therefrom by the beneficiaries .”
— Mich. Comp. Laws § 700.7502(3) — 1 case
Kohut v. Lois & Richard Lewiston Living Trust (In re Lewiston), 532 B.R. 36 (Bankr. E.D. Mich. 2015).
“7502(3) provides that “the trust beneficiary’s interest in a trust may not be transferred in violation of a valid spendthrift provision and trust property is not subject to enforcement of a judgment until distributed directly to the trust beneficiary.”
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