Bill Text: MI HB4821 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Probate; wills and estates; appointment of the state or county public administrator as personal representative of a decedent's estate in a formal proceeding; require, and modify powers and duties of public administrators acting as personal representatives. Amends secs. 3203, 3204 & 3414 of 1998 PA 386 (MCL 700.3203 et seq.). TIE BAR WITH: HB 4822'17
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-02-06 - Assigned Pa 13'18 With Immediate Effect [HB4821 Detail]
Download: Michigan-2017-HB4821-Engrossed.html
HB-4821, As Passed House, October 5, 2017
SUBSTITUTE FOR
HOUSE BILL NO. 4821
A bill to amend 1998 PA 386, entitled
"Estates and protected individuals code,"
by amending sections 3203, 3204, and 3414 (MCL 700.3203, 700.3204,
and 700.3414), sections 3204 and 3414 as amended by 2000 PA 54.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3203. (1) For either formal or informal proceedings,
subject to subsection (2), persons who are not disqualified have
priority for appointment as personal representative in the
following order:
(a) The person with priority as determined by a probated will
including a person nominated by a power conferred in a will.
(b) The decedent's surviving spouse if the spouse is a devisee
of the decedent.
(c) Other devisees of the decedent.
(d) The decedent's surviving spouse.
(e) Other heirs of the decedent.
(f) After 42 days after the decedent's death, the nominee of a
creditor if the court finds the nominee suitable.
(g)
The After 91 days after
the decedent's death, or after 42
days but before 91 days after the decedent's death if the court
determines exigent circumstances exist, the state or county public
administrator if any of the following apply:
(i) No interested person applied or petitioned for appointment
of
a personal representative within 42 91 days or the number of
days determined by the court under this subdivision after the
decedent's death.
(ii) The decedent died apparently leaving no known heirs.
(iii) There is no spouse, heir, or beneficiary under a will
who is a United States resident and is entitled to a distributive
share in the decedent's estate.
(2) An objection to the appointment of a personal
representative may be made only in a formal proceeding. If an
objection is made, the priorities prescribed by subsection (1)
apply except in either of the following circumstances:
(a) If the estate appears to be more than adequate to meet
exemptions and costs of administration but inadequate to discharge
anticipated unsecured claims, on petition of creditors, the court
may appoint any qualified person.
(b) If a devisee or heir who appears to have a substantial
interest in the estate objects to the appointment of a person whose
priority is not determined by will, the court may appoint a person
who is acceptable to the devisees and heirs whose interests in the
estate appear to be worth in total more than 1/2 of the probable
distributable value or, if no person is acceptable to these
devisees and heirs, any suitable person.
(3) A person entitled to letters under subsection (1)(b) to
(e) may nominate a qualified person to act as personal
representative. A person may renounce his or her right to nominate
or to an appointment by filing an appropriate writing with the
court. If 2 or more persons share a priority, those of them who do
not renounce shall concur in nominating another to act for them or
in applying for appointment.
Sec. 3204. (1) A conservator of a protected individual's
estate or, if there is no conservator, a guardian of a minor or
legally incapacitated individual may exercise the same right to
nominate, to object to another's appointment, or to participate in
determining the preference of a majority in interest of the
devisees and heirs that the protected individual or ward would have
if qualified for appointment.
(2) Except as provided in sections 3308(1)(f) and 3310, a
person who does not have priority prescribed in section 3203(1)(a)
to (f), including priority resulting from renunciation or
nomination determined under this section or section 3203, shall be
appointed only in a formal proceeding. The state or county public
administrator must be appointed only in a formal proceeding. Before
appointing
a the state or county
public administrator or any other
person without priority, the court shall determine that persons
having priority have been notified of the proceedings and have
failed to request appointment or to nominate another person for
appointment, and that administration is necessary.
(3) A person is not qualified to serve as a personal
representative if the person is either under the age of 18 or is a
person whom the court finds unsuitable in formal proceedings.
(4) A personal representative appointed by a court of the
decedent's domicile has priority over all other persons except if
the decedent's will nominates different persons to be personal
representatives in this state and in the state of domicile. The
domiciliary personal representative may nominate another person,
who then has the same priority as the domiciliary personal
representative.
(5) This section and section 3203 govern priority for
appointment of a successor personal representative, but do not
apply to the selection of a special personal representative.
Sec. 3414. (1) An interested person or a person that has a
right or cause of action that cannot be enforced without
appointment may file a petition for a formal proceeding regarding
the priority or qualification of a prospective or appointed
personal representative.
(2) If an issue concerning the decedent's testacy is or may be
involved, a formal proceeding for adjudication regarding the
priority or qualification of an individual who is seeking
appointment as personal representative or who was previously
appointed personal representative in informal proceedings is
governed by this section and section 3402. In other cases, the
petition
must contain include or adopt the statements required by
section
3301(1)(a) and shall must describe the question relating to
the personal representative's priority or qualification that is to
be resolved.
(3) If a formal proceeding precedes the appointment of a
personal representative, the formal proceeding stays an informal
appointment proceeding that is pending or that is commenced after
the formal proceeding's commencement. If the formal proceeding is
commenced after the appointment of a personal representative and
after the personal representative receives notice of the
commencement, the personal representative shall not exercise a
power of administration except as necessary to preserve the estate
or unless the court orders otherwise.
(4) After notice to interested persons, including all persons
interested in the administration of the estate as successors under
the applicable assumption concerning testacy, a previously
appointed personal representative, a person having or claiming
priority for appointment as personal representative, and any other
person described in section 3403(1) or (2), the court shall
determine who is entitled to appointment under section 3203, make a
proper appointment, and, if appropriate, terminate a prior
appointment found to be improper as provided in cases of removal
under section 3611.
(5) If the state or county public administrator is seeking
appointment as personal representative and the state or county
public administrator has knowledge that the decedent's real
property has delinquent property taxes on it or is subject to a
mortgage foreclosure, all of the following apply:
(a) In addition to any other notice required under this act,
the petitioner shall give notice of hearing to the decedent's heirs
in the manner prescribed by section 1401. The petitioner shall also
post the notice of hearing on the decedent's real property. A
notice required under this subdivision must be in a form approved
by the supreme court and must include all of the following
information:
(i) A statement describing why the heir is receiving the
notice.
(ii) That the heir may petition the court to object to the
petitioner's appointment.
(iii) That the heir may petition the court for a court hearing
on any matter, including, but not limited to, a petition for
removal of a personal representative for cause under section 3611,
at any time during the estate's administration.
(b) The petition must include a statement that details the
petitioner's reasonable search for the decedent's heirs. A search
required under this subdivision must include the use of an
electronic searching service.
(6) A state or county public administrator who knowingly fails
to provide the notices required under subsection (5) is guilty of a
misdemeanor punishable by imprisonment for not more than 90 days or
a fine of not more than $1,000.00, or both.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless House Bill No. 4822 of the 99th Legislature is enacted into
law.
