Probate: trusts; powers of appointment; revise. Amends secs. 5a & 14 of 1967 PA 224 (MCL 556.115a & 556.124).

This bill updates Michigan's laws regarding how trustees of irrevocable trusts can move assets into a new trust using their existing distribution powers. It allows a trustee to transfer all or part of a trust's property to a second trust without reducing specific financial benefits or tax deductions that beneficiaries currently receive. The law includes specific rules to ensure that the new trust maintains the original beneficiaries' rights and that the transfer does not negatively impact their income, annuities, or withdrawal privileges. Additionally, the bill clarifies how certain types of discretionary powers are defined and establishes that the new trust will be treated as both a fresh irrevocable trust and a continuation of the original one for legal purposes.