Life Insurance and Creditors (Michigan)

By Matthew A. Quick In light of the holdings in Equitable Life Assurance Society of the United States v Hitchcock, 270 Mich 72 (1935), and Baltrusaitis v Cook, 174 Mich App 180 (1988), public policy regarding life insurance proceeds favors protecting the insurance taken out by a person for the maintenance and support of the person's spouse and children from the claims of creditors. Also consider MCL 500.2207 and MCL 500.4054.

If fraudulent conveyance of life insurance is at issue, be sure to consider if the life insurance policy is even property contemplated by the Uniform Fraudulent Transfer Act and other provisions regarding fraudulent conveyances under Chapter 566 of the Michigan Compiled Laws.