Bill Text: MI HB5814 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Probate: other; prima facie evidence that transfer is made for value; modify to reflect repeal of the state real estate transfer tax act. Amends sec. 3912 of 1998 PA 386 (MCL 700.3912). TIE BAR WITH: HB 5811'24
Spectrum: Partisan Bill (Republican 21-0)
Status: (Introduced) 2024-06-13 - Bill Electronically Reproduced 06/13/2024 [HB5814 Detail]
Download: Michigan-2023-HB5814-Introduced.html
HOUSE BILL NO. 5814
A bill to amend 1998 PA 386, entitled
"Estates and protected individuals code,"
by amending section 3912 (MCL 700.3912).
the people of the state of michigan enact:
Sec. 3912. (1) If property distributed in kind or a security interest in that property is acquired for value by a purchaser from or lender to a distributee who has received an instrument or deed of distribution from the personal representative, or is so acquired by a purchaser from or lender to a transferee from such a distributee, the purchaser or lender takes title free of rights of an interested person in the estate and incurs no personal liability to the estate, or to an interested person, whether or not the distribution was proper or supported by court order or the personal representative's authority was terminated before execution of the instrument or deed.
(2) This section protects a purchaser from or lender to a distributee who, as personal representative, has executed a deed of distribution to himself or herself, the personal representative's own self, as well as a purchaser from or lender to another distributee or his or her that person's transferee. To be protected under this section, a purchaser or lender does not need to inquire whether a personal representative acted properly making the distribution in kind, even if the personal representative and the distributee are the same person, or whether the authority of the personal representative had terminated before the distribution.
(3) A recorded instrument described in this section on which an exemption listed in section 5 of 1966 PA 135, 134, MCL 207.505, or section 6 of the state real estate transfer tax act, former 1993 PA 330 if the instrument was recorded when former 1993 PA 330 applied, MCL 207.526, is not noted is prima facie evidence that the transfer is made for value. Notwithstanding this section, a purchaser or lender takes title free of the lien for Michigan estate tax only to the extent provided by section 43 of the Michigan estate tax act, 1899 PA 188, MCL 205.243.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 5811 (request no. 03473'23) of the 102nd Legislature is enacted into law.
