Bill Text: MI HB4486 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Probate; guardians and conservators; bond; require if liquid assets in estate exceeds a certain limit, and require conservator to sign acknowledgment of duties. Amends secs. 5410 & 5501 of 1998 PA 386 (MCL 700.5410 & 700.5501).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-03-24 - Printed Bill Filed 03/24/2011 [HB4486 Detail]

Download: Michigan-2011-HB4486-Introduced.html

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HOUSE BILL No. 4486

 

March 23, 2011, Introduced by Rep. Switalski and referred to the Committee on Judiciary.

 

     A bill to amend 1998 PA 386, entitled

 

"Estates and protected individuals code,"

 

by amending sections 5410 and 5501 (MCL 700.5410 and 700.5501).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5410. (1) The court may require a conservator to furnish

 

a bond. If the court determines that the value of cash and property

 

that is readily convertible into cash in the estate and in the

 

conservator's control exceeds the limit for administering a

 

decedent's estate under section 3982, adjusted in the manner

 

provided under section 1210 for the year in which the conservator

 

is appointed, the court shall require the conservator to furnish a

 

bond, unless 1 or more of the following apply:

 

     (a) The estate contains no property readily convertible to

 

cash and the cash is in a restricted account with a financial

 

institution.

 

     (b) The conservator has been granted trust powers under

 

section 4401 of the banking code of 1999, 1999 PA 276, MCL

 

487.14401.

 

     (c) The court determines that requiring a bond would impose a

 

financial hardship on the estate.

 

     (d) The court states on the record the reasons why a bond is

 

not necessary.

 

     (2) A bond furnished under this section shall be conditioned

 

upon faithful discharge of all duties of the conservator's trust

 

according to law, with sureties as the court specifies. Unless

 

otherwise directed, the bond shall be in the amount of the

 

aggregate capital value of the estate property in the conservator's

 

control plus 1 year's estimated income minus the value of

 

securities deposited under arrangements requiring a court order for

 

their removal and the value of land that the fiduciary, by express

 

limitation of power, lacks power to sell or convey without court

 

authorization. Instead of sureties on a bond, the court may accept

 

other security for the performance of the bond, including a pledge

 

of securities or a mortgage of land.

 

     Sec. 5501. (1) A durable power of attorney is a power of

 

attorney by which a principal designates another as the principal's

 

attorney in fact in a writing and the writing that contains the

 

words "This power of attorney is not affected by the principal's

 

subsequent disability or incapacity, or by the lapse of time", or

 

"This power of attorney is effective upon the disability or

 

incapacity of the principal", or similar words showing the

 

principal's intent that the authority conferred is exercisable

 

notwithstanding the principal's subsequent disability or incapacity

 

and, unless the power states a termination time, notwithstanding

 

the lapse of time since the execution of the instrument.

 

     (2) Before exercising authority as attorney in fact under a

 

durable power of attorney, a person shall sign an acceptance of the

 

designation, acknowledging and accepting all of the following

 

obligations, liabilities, and rights:

 

     (a) To act in the best interest of the principal.

 

     (b) To keep the principal informed of the attorney in fact's

 

actions and account to the principal.

 

     (c) To not make gifts of the principal's property unless

 

specifically authorized by the power of attorney.

 

     (d) To be prosecuted and punished for any criminal acts.

 

     (e) To keep the principal's assets in an account that does not

 

include money of the attorney in fact or another person.

 

     (f) To only use the principal's property and income for the

 

benefit of the principal, unless otherwise authorized specifically

 

in the power of attorney.

 

     (g) If requested, to provide an accounting at any time to the

 

principal, a fiduciary appointed on behalf of the principal, or the

 

court.

 

     (h) To maintain sufficient records of every transaction and be

 

prepared to defend each action.

 

     (i) To be held financially responsible for any transaction

 

that is not specifically authorized in the power of attorney.

 

     (j) To hire an advisor, attorney, accountant, or other

 

professional as reasonably required to comply with the attorney in

 

fact's duties and to pay for the professional's services from the

 

estate of the principal.

 

     (k) Unless prohibited by the power of attorney, to receive

 

reasonable compensation for the attorney in fact's services, which

 

compensation may be subject to scrutiny by the court.

 

     Enacting section 1. This amendatory act takes effect April 1,

 

2012.