Sec. 2710.
(1) If, under section 2709, substitute gifts are created and not superseded with respect to more than 1 beneficiary designation and the beneficiary designations are alternative beneficiary designations, one to the other, the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.
(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.
History: 1998, Act 386, Eff. Apr. 1, 2000
Popular Name: EPIC
Last modified: October 10, 2016