Bill Text: MI HB5237 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Probate; wills and estates; administration and distribution of estates of decedents who die after December 31, 2009 and before January 1, 2011; modify. Amends sec. 2723 of 1998 PA 386 (MCL 700.2723).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2012-09-27 - Assigned Pa 303'12 With Immediate Effect [HB5237 Detail]
Download: Michigan-2011-HB5237-Introduced.html
HOUSE BILL No. 5237
December 15, 2011, Introduced by Rep. Ouimet and referred to the Committee on Tax Policy.
A bill to amend 1998 PA 386, entitled
"Estates and protected individuals code,"
by amending section 2723 (MCL 700.2723), as added by 2010 PA 224.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
2723. (1) Except as provided in subsections subsection
(3), and
(4), for purposes of
interpreting a will, trust, or
beneficiary designation of or by a decedent who dies after December
31,
2009 and before January 1, 2011, shall be a will, trust, or
beneficiary designation is presumed to refer to the federal estate
tax and federal generation-skipping transfer tax laws as they apply
to
estates of decedents who die on December 31, 2009 January 1,
2010, in accordance with section 302(c) of the 2010 federal tax
relief act without regard to the election permitted by section
301(c) of that act, if either of the following applies to the will,
trust, or beneficiary designation:
(a) The will, trust, or beneficiary designation contains a
formula referring to the unified credit, estate tax exemption,
applicable exemption amount, applicable credit amount, applicable
exclusion amount, taxable estate, gross estate, estate tax value,
generation-skipping transfer tax exemption, GST exemption, marital
deduction, maximum marital deduction, unlimited marital deduction,
inclusion ratio, applicable fraction, or any section of the
internal revenue code of 1986, 26 USC 1 to 9834, relating to the
federal estate tax or generation-skipping transfer tax.
(b) The will, trust, or beneficiary designation measures a
share of an estate, trust, or contractual benefit subject to a
beneficiary designation based on the amount that can pass free of
federal estate tax or the amount that can pass free of federal
generation-skipping transfer tax or based on a similar provision of
federal estate tax or federal generation-skipping transfer tax law.
(2) A presumption that arises under subsection (1) is a
rebuttable presumption that the decedent intended that the
applicable
formula be construed as provided in
subsection (1). A
fiduciary of an estate, trust, or contractual benefit subject to a
beneficiary designation under which the presumption is applicable
shall give notice to each beneficiary whose interest is affected by
the presumption. A presumption that arises under subsection (1)
does not preclude a fiduciary from making any available election,
including an election under section 301(c) of the 2010 federal tax
relief act. A fiduciary who has made an election under section
301(c) of the 2010 federal tax relief act may commence a proceeding
to determine whether the decedent would not have intended the
formula to be construed as provided in subsection (1). All
interested persons affected by a presumption that arises under
subsection (1) may enter into a nonjudicial settlement under
section 7111 that the decedent intended the formula to be construed
in a different manner from the presumption under subsection (1). A
beneficiary whose interest is affected by the presumption or a
fiduciary of the will, trust, or contractual benefit subject to a
beneficiary designation may commence a proceeding to determine
whether the decedent intended that the formula be construed as
provided under subsection (1). Solely for the purpose of
determining the intent of the decedent regarding the formula under
this section, the court may consider the surrounding circumstances
and the rules of construction. A person who commences a proceeding
under this section has the burdens of proof and persuasion in
establishing the decedent's intent that the formula should not be
construed as provided in subsection (1). A proceeding under this
subsection shall be commenced or a nonjudicial settlement under
this subsection shall be executed within whichever of the following
is earlier:
(a) Two years after the decedent's death.
(b) Six months after the fiduciary sent the beneficiary a
notice of the presumption under this subsection or the due date for
filing the federal estate tax return of the decedent, if later.
(3) A presumption under subsection (1) does not apply with
respect to a will, trust, or beneficiary designation that is
executed
or amended after December 31, 2009 2010, or that manifests
an intent that a contrary rule shall apply if the decedent dies on
a
date on which there is when no then-applicable federal estate or
generation-skipping transfer tax would apply.
(4)
If the federal estate tax or federal generation-skipping
transfer
tax becomes applicable before January 1, 2011, the
reference
in subsection (1) to January 1, 2011 shall refer instead
to
the earlier date on which the tax takes effect.
(4) (5)
This section is a remedial response
to changes in the
federal estate tax and generation-skipping transfer tax and takes
effect retroactively on January 1, 2010.
(5) As used in this section, "2010 federal tax relief act"
means the tax relief, unemployment insurance reauthorization, and
job creation act of 2010, Public Law 111-312.
