Michigan Laws 700.2716 – No substitute taker; lapse
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(1) Except as provided in subsection (2), if, after the application of section 2714 and 2715, there is no surviving taker, the property passes in the following order:
(a) If the trust is created in a nonresiduary devise in the transferor’s will or in a codicil to the transferor’s will, the property passes under the residuary clause in the transferor’s will. For purposes of this section, the residuary clause is treated as creating a future interest under the terms of a trust.
Terms Used In Michigan Laws 700.2716
- Application: means a written request to the probate register for an order of informal probate or informal appointment under part 3 of article III. See Michigan Laws 700.1103
- Codicil: An addition, change, or supplement to a will executed with the same formalities required for the will itself.
- Donee: The recipient of a gift.
- Donor: The person who makes a gift.
- 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
- Trust: includes , but is not limited to, an express trust, private or charitable, with additions to the trust, wherever and however created. See Michigan Laws 700.1107
(b) If a taker is not produced by the application of subdivision (a), the property passes to the transferor’s heirs under section 2720.
(2) If, after the application of section 2714 and 2715, there is no surviving taker and if the future interest was created by the exercise of a power of appointment, the following apply:
(a) The property passes under the donor‘s gift-in-default clause, if any, which clause is treated as creating a future interest under the terms of a trust.
(b) If a taker is not produced by the application of subdivision (a), the property passes as provided in subsection (1). For purposes of subsection (1), “transferor” means the donor if the power was a nongeneral power and means the donee if the power was a general power.