Bill Text: MI SB0293 | 2013-2014 | 97th Legislature | Introduced


Bill Title: Probate; wills and estates; power of personal representative of a decedent's estate; provide access to certain online accounts. Amends sec. 3715 of 1998 PA 386 (MCL 700.3715).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-04-10 - Referred To Committee On Judiciary [SB0293 Detail]

Download: Michigan-2013-SB0293-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 293

 

 

Introduced by Senator BIEDA.

 

 

     A bill to amend 1998 PA 386, entitled

 

"Estates and protected individuals code,"

 

by amending section 3715 (MCL 700.3715), as amended by 2009 PA 46.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3715. Except as restricted or otherwise provided by the

 

will or by an order in a formal proceeding, and subject to the

 

priorities stated in section 3902, a personal representative,

 

acting reasonably for the benefit of interested persons, may

 

properly do any of the following:

 

     (a) Retain property owned by the decedent pending distribution

 

or liquidation, including property in which the personal

 

representative is personally interested or that is otherwise

 

improper for trust investment.

 

     (b) Receive property from a fiduciary or another source.


 

     (c) Perform, compromise, or refuse performance of a contract

 

of the decedent that continues as an estate obligation, as the

 

personal representative determines under the circumstances. If the

 

contract is for a conveyance of land and requires the giving of

 

warranties, the personal representative shall include in the deed

 

or other instrument of conveyance the required warranties. The

 

warranties are binding on the estate as though the decedent made

 

them but do not bind the personal representative except in a

 

fiduciary capacity. In performing an enforceable contract by the

 

decedent to convey or lease land, the personal representative,

 

among other possible courses of action, may do any of the

 

following:

 

     (i) Execute and deliver a deed of conveyance for cash payment

 

of the amount remaining due or for the purchaser's note for the

 

amount remaining due secured by a mortgage on the land.

 

     (ii) Deliver a deed in escrow with directions that the

 

proceeds, when paid in accordance with the escrow agreement, be

 

paid to the decedent's successors, as designated in the escrow

 

agreement.

 

     (d) If, in the judgment of the personal representative, the

 

decedent would have wanted the pledge satisfied under the

 

circumstances, satisfy a written charitable pledge of the decedent

 

irrespective of whether the pledge constitutes a binding obligation

 

of the decedent or is properly presented as a claim.

 

     (e) If funds are not needed to meet a debt or expenses

 

currently payable and are not immediately distributable, deposit or

 

invest liquid assets of the estate, including funds received from


 

the sale of other property, in accordance with the Michigan prudent

 

investor rule.

 

     (f) Acquire or dispose of property, including land in this or

 

another state, for cash or on credit, at public or private sale;

 

and manage, develop, improve, exchange, partition, change the

 

character of, or abandon estate property.

 

     (g) Make an ordinary or extraordinary repair or alteration in

 

a building or other structure, demolish an improvement, or raze an

 

existing or erect a new party wall or building.

 

     (h) Subdivide, develop, or dedicate land to public use, make

 

or obtain the vacation of a plat or adjust a boundary, adjust a

 

difference in valuation on exchange or partition by giving or

 

receiving consideration, or dedicate an easement to public use

 

without consideration.

 

     (i) Enter into a lease as lessor or lessee for any purpose,

 

with or without an option to purchase or renew, for a term within

 

or extending beyond the period of administration.

 

     (j) Enter into a lease or arrangement for exploration and

 

removal of minerals or another natural resource, or enter into a

 

pooling or unitization agreement.

 

     (k) Abandon property when, in the opinion of the personal

 

representative, it is valueless, or is so encumbered or in such a

 

condition as to be of no benefit to the estate.

 

     (l) Vote stocks or another security in person or by general or

 

limited proxy.

 

     (m) Pay a call, assessment, or other amount chargeable or

 

accruing against or on account of a security, unless barred by a


 

provision relating to claims.

 

     (n) Hold a security in the name of a nominee or in other form

 

without disclosure of the estate's interest. However, the personal

 

representative is liable for an act of the nominee in connection

 

with the security so held.

 

     (o) Insure the estate property against damage, loss, and

 

liability and insure the personal representative against liability

 

as to third persons.

 

     (p) Borrow property with or without security to be repaid from

 

the estate property or otherwise, and advance money for the

 

estate's protection.

 

     (q) Effect a fair and reasonable compromise with a debtor or

 

obligor, or extend, renew, or in any manner modify the terms of an

 

obligation owing to the estate. If the personal representative

 

holds a mortgage, pledge, or other lien upon another person's

 

property, the personal representative may, in lieu of foreclosure,

 

accept a conveyance or transfer of encumbered property from the

 

property's owner in satisfaction of the indebtedness secured by

 

lien.

 

     (r) Pay a tax, an assessment, the personal representative's

 

compensation, or another expense incident to the estate's

 

administration.

 

     (s) Sell or exercise a stock subscription or conversion right.

 

     (t) Consent, directly or through a committee or other agent,

 

to the reorganization, consolidation, merger, dissolution, or

 

liquidation of a corporation or other business enterprise.

 

     (u) Allocate items of income or expense to either estate


 

income or principal, as permitted or provided by law.

 

     (v) Employ, and pay reasonable compensation for reasonably

 

necessary services performed by, a person, including, but not

 

limited to, an auditor, investment advisor, or agent, even if the

 

person is associated with the personal representative, to advise or

 

assist the personal representative in the performance of

 

administrative duties; act on such a person's recommendations

 

without independent investigation; and, instead of acting

 

personally, employ 1 or more agents to perform an act of

 

administration, whether or not discretionary.

 

     (w) Employ an attorney to perform necessary legal services or

 

to advise or assist the personal representative in the performance

 

of the personal representative's administrative duties, even if the

 

attorney is associated with the personal representative, and act

 

without independent investigation upon the attorney's

 

recommendation. An attorney employed under this subdivision shall

 

receive reasonable compensation for his or her employment.

 

     (x) Prosecute or defend a claim or proceeding in any

 

jurisdiction for the protection of the estate and of the personal

 

representative in the performance of the personal representative's

 

duties.

 

     (y) Sell, mortgage, or lease estate property or an interest in

 

estate property for cash, credit, or part cash and part credit, and

 

with or without security for unpaid balances.

 

     (z) Continue a business or venture in which the decedent was

 

engaged at the time of death as a sole proprietor or a general

 

partner, including continuation as a general partner by a personal


 

representative that is a corporation, in any of the following

 

manners:

 

     (i) In the same business form for a period of not more than 4

 

months after the date of appointment of a general personal

 

representative if continuation is a reasonable means of preserving

 

the value of the business, including goodwill.

 

     (ii) In the same business form for an additional period of time

 

if approved by court order in a formal proceeding to which the

 

persons interested in the estate are parties.

 

     (iii) Throughout the period of administration if the personal

 

representative incorporates the business or converts the business

 

to a limited liability company and if none of the probable

 

distributees of the business who are competent adults object to its

 

incorporation or conversion and its retention in the estate.

 

     (aa) Change the form of a business or venture in which the

 

decedent was engaged at the time of death through incorporation or

 

formation as a limited liability company or other entity offering

 

protection against or limiting exposure to liabilities.

 

     (bb) Provide for the personal representative's exoneration

 

from personal liability in a contract entered into on the estate's

 

behalf.

 

     (cc) Respond to an environmental concern or hazard affecting

 

estate property as provided in section 3722.

 

     (dd) Satisfy and settle claims and distribute the estate as

 

provided in this act.

 

     (ee) Make, revise, or revoke an available allocation, consent,

 

or election in connection with a tax matter as appropriate in order


 

to carry out the decedent's estate planning objectives and to

 

reduce the overall burden of taxation, both in the present and in

 

the future. This authority includes, but is not limited to, all of

 

the following:

 

     (i) Electing to take expenses as estate tax or income tax

 

deductions.

 

     (ii) Electing to allocate the exemption from the tax on

 

generation skipping transfers among transfers subject to estate or

 

gift tax.

 

     (iii) Electing to have all or a portion of a transfer for a

 

spouse's benefit qualify for the marital deduction.

 

     (iv) Electing the date of death or an alternate valuation date

 

for federal estate tax purposes.

 

     (v) Excluding or including property from the gross estate for

 

federal estate tax purposes.

 

     (vi) Valuing property for federal estate tax purposes.

 

     (vii) Joining with the surviving spouse or the surviving

 

spouse's personal representative in the execution and filing of a

 

joint income tax return and consenting to a gift tax return filed

 

by the surviving spouse or the surviving spouse's personal

 

representative.

 

     (ff) Divide portions of the estate, including portions to be

 

allocated into trust, into 2 or more separate portions or trusts

 

with substantially identical terms and conditions, and allocate

 

property between them, in order to simplify administration for

 

generation skipping transfer tax purposes, to segregate property

 

for management purposes, or to meet another estate or trust


 

objective.

 

     (gg) Take control of, conduct, continue, or terminate any

 

accounts of the decedent on any social networking website, any

 

microblogging or short message service website, or any electronic

 

mail service website.

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