Michigan Laws 700.2710 – Multiple substitute gifts
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(1) If, under section 2709, substitute gifts are created and not superseded with respect to more than 1 beneficiary designation and the beneficiary designations are alternative beneficiary designations, one to the other, the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 provided in subdivision (b), the property passes under the primary substitute gift.
Terms Used In Michigan Laws 700.2710
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Beneficiary: includes , but is not limited to, the following:
(i) In relation to a trust, a person that is a trust beneficiary as defined in section 7103. See Michigan Laws 700.1103Beneficiary designation: means the naming in a governing instrument of a beneficiary of an insurance or annuity policy, of an account with POD designation, of a security registered in beneficiary form (TOD), of a pension, profit-sharing, retirement, or similar benefit plan, or of another nonprobate transfer at death. See Michigan Laws 700.1103 Decedent: A deceased person. Descendant: means , in relation to an individual, all of his or her descendants of all generations, with the relationship of parent and child at each generation being determined by the definitions of child and parent contained in this act. See Michigan Laws 700.1103 Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value. Property: means anything that may be the subject of ownership, and includes both real and personal property or an interest in real or personal property. See Michigan Laws 700.1106
(b) If there is a younger-generation beneficiary designation, the property passes under the younger-generation substitute gift and not under the primary substitute gift.
(2) As used in this section:
(a) “Primary beneficiary designation” means the beneficiary designation that would have taken effect had all the deceased beneficiaries of the alternative beneficiary designations who left surviving descendants survived the decedent.
(b) “Primary substitute gift” means the substitute gift created with respect to the primary beneficiary designation.
(c) “Younger-generation beneficiary designation” means a beneficiary designation for which all of the following are true:
(i) Is to a descendant of a beneficiary of the primary beneficiary designation.
(ii) Is an alternative beneficiary designation with respect to the primary beneficiary designation.
(iii) Is a beneficiary designation for which a substitute gift is created.
(iv) Would have taken effect had all the deceased beneficiaries who left surviving descendants survived the decedent except the deceased beneficiary or beneficiaries of the primary beneficiary designation.
(d) “Younger-generation substitute gift” means the substitute gift created with respect to the younger-generation beneficiary designation.