Sec. 7504.
(1) The interest of a trust beneficiary that is subject to a spendthrift provision, a support provision, or both may be reached in satisfaction of an enforceable claim against the trust beneficiary by any of the following:
(a) A trust beneficiary's child or former spouse who has a judgment or court order against the trust beneficiary for support or maintenance.
(b) A judgment creditor who has provided services that enhance, preserve, or protect a trust beneficiary's interest in the trust.
(c) This state or the United States.
(2) The court shall order the trustee to satisfy all or part of a judgment described in subsection (1) only out of all or part of distributions of income or principal as they become due.
(3) Notwithstanding that the terms of the trust include a spendthrift provision, this section does not apply to the interest of a trust beneficiary that is subject to a discretionary trust provision.
(4) As used in this section, "child" includes any person for whom an order or judgment for child support has been entered in this or another state.
History: 1998, Act 386, Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46, Eff. Apr. 1, 2010 Popular Name: EPIC
Structure Michigan Compiled Laws
Chapter 700 - Estates and Protected Individuals Code
Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206)
Article VII - Michigan Trust Code (700.7101...700.7913)
Section 700.7501 - Application; Purposes.
Section 700.7502 - Spendthrift Provision.
Section 700.7503 - Trust for Support.
Section 700.7504 - Spendthrift Provision or Support Provision; Exceptions; "Child" Defined.
Section 700.7505 - Discretionary Trust; Effect of Standard; Right of Transferee or Creditor.
Section 700.7506 - Creditor's Claim Against Settlor; "Settlor" Explained.
Section 700.7507 - Overdue Distribution; "Mandatory Distribution" Defined.
Section 700.7508 - Personal Obligations of Trustee.
Section 700.7509-700.7511 - Repealed. 2009, Act 46, Eff. Apr. 1, 2010.