HOUSE BILL No. 5498
March 8, 2000, Introduced by Rep. Shulman and referred to the Committee on Family and Civil Law. A bill to amend 1967 PA 224, entitled "Powers of appointment act of 1967," by amending section 4 (MCL 556.114). THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 4. Unless otherwise provided in the creating instru- 2 ment, an instrument manifests an intent to exercise the power if 3 the instrument purports to transfer an interest in the appointive 4 property which THAT the donee would have no power to transfer 5 except by virtue of the power, even though the power is not 6 recited or referred to in the instrument, or if the instrument 7 either expressly or by necessary implication from its wording, 8 interpreted in the light of the circumstances surrounding its 9 drafting and execution, manifests an intent to exercise the 10 power. If the creating instrument explicitly directs that no 11 instrument shall be effective to exercise the power unless it 03358'99 b GWH 2 1 contains a reference to the specific power, an instrument which 2 lacks such reference does not validly exercise the power. 3 Subject to the foregoing OTHER PROVISIONS OF THIS SECTION, if 4 there is a general power exercisable by will with no express gift 5 in default in the creating instrument, a residuary clause or 6 other general language in the donee's will purporting to dispose 7 of all of the donee's estate or property operates to exercise the 8 power, but in all other cases such a clause or language does not 9 in itself manifest an intent to exercise a power exercisable by 10 will. 03358'99 b Final page. GWH