February 24, 2011, Introduced by Reps. Irwin, Darany, Bauer, Slavens, Smiley, Liss, Santana, Tlaib, Barnett, Geiss, Rutledge, Hovey-Wright, Oakes, Brown, Dillon, Haugh, Switalski, Durhal, Segal, Townsend, Brunner, Cavanagh, Meadows, McCann and Lipton and referred to the Committee on Judiciary.
A bill to amend 1998 PA 386, entitled
"Estates and protected individuals code,"
by amending section 5410 (MCL 700.5410).
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.
Enacting section 1. This amendatory act takes effect April 1,
2012.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 96th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 4330(request no.
00821'11).
(b) Senate Bill No.____ or House Bill No. 4335(request no.
00942'11).