HOUSE BILL No. 6046 September 16, 1998, Introduced by Reps. Richner and Green and referred to the Committee on Judiciary. A bill to amend 1978 PA 642, entitled "Revised probate code," by amending sections 444, 454, 455, 468, 478, 484, and 636 (MCL 700.444, 700.454, 700.455, 700.468, 700.478, 700.484, and 700.636), sections 444, 454, and 455 as amended by 1988 PA 398 and section 468 as amended by 1980 PA 396. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 444. (1) The court may appoint a guardian ifit is2satisfiedTHE COURT FINDS by clear and convincing evidence BOTH 3 that the person for whom a guardian is sought is a legally inca- 4 pacitated person,and that the appointment is necessary as a 5 means of providing continuing care and supervision of the person 6 of the legally incapacitated person, WITH EACH FINDING SUPPORTED 7 SEPARATELY ON THE RECORD. THE FORM FOR RECORDING FINDINGS UNDER 8 THIS SUBSECTION SHALL REFLECT THE REQUIREMENT FOR SEPARATE 05498'98 GWH 2 1 FINDINGS ON THESE ISSUES. Alternately, the court may dismiss the 2 proceeding,or may enterany otherANOTHER appropriate 3 order. 4 (2)A guardian shall be grantedTHE COURT SHALL GRANT A 5 GUARDIAN only those powers and only for that period of time as is 6 necessary to provide for the demonstrated need of the legally 7 incapacitated person., and the guardianship shall be designed8 THE COURT SHALL DESIGN THE GUARDIANSHIP to encourage the develop- 9 ment of maximum self-reliance and independence in the person. 10 EXCEPT AS PROVIDED IN SUBSECTION (5), A COURT SHALL NOT GRANT A 11 GUARDIAN THE SAME POWERS THAT ARE HELD BY A PATIENT ADVOCATE 12 UNDER A DESIGNATION UNDER SECTION 496. A court order establishing 13 a guardianship shall specify any limitations on the guardian's 14 powers and any time limits on the guardianship. EXCEPT AS PRO- 15 VIDED IN SECTION 468, THE COURT SHALL NOT AUTHORIZE A GUARDIAN 16 TO, AND A GUARDIAN DOES NOT HAVE THE POWER TO, SELL A WARD'S REAL 17 PROPERTY. 18 (3) Ifit is foundTHE COURT FINDS by clear and convincing 19 evidence thattheA person is legally incapacitated and lacks 20 the capacity to do some, but not all, of the tasks necessary to 21 care for himself or herself, the court may appoint a limited 22 guardian to provide guardianship services to the person, but the 23 court shall not appoint a full guardian. 24 (4) Ifit is foundTHE COURT FINDS by clear and convincing 25 evidence thattheA person is legally incapacitated and is 26 totally without capacity to care for himself or herself, the 05498'98 3 1 court shall specify that finding of fact in any order and may 2 appoint a full guardian. 3 (5) IF THE GUARDIAN'S WARD EXECUTES A PATIENT ADVOCATE DES- 4 IGNATION IN COMPLIANCE WITH SECTION 496 AND NAMES A PERSON OTHER 5 THAN THE GUARDIAN AS HIS OR HER PATIENT ADVOCATE, FOR THOSE TIME 6 PERIODS WHEN THE PATIENT ADVOCATE'S AUTHORITY, RIGHTS, AND 7 RESPONSIBILITIES ARE EFFECTIVE AS PROVIDED IN SECTION 496, THE 8 COURT SHALL NOT GRANT AND THE GUARDIAN SHALL NOT EXERCISE A POWER 9 THAT THE DESIGNATION GIVES TO THE PATIENT ADVOCATE REGARDING THE 10 WARD'S CARE, CUSTODY, OR MEDICAL TREATMENT. IF, HOWEVER, A PETI- 11 TION FOR GUARDIANSHIP OR FOR MODIFICATION UNDER SECTION 447 12 ALLEGES AND THE COURT FINDS THAT THE PATIENT ADVOCATE DESIGNATION 13 WAS NOT EXECUTED IN COMPLIANCE WITH SECTION 496, THAT THE PATIENT 14 ADVOCATE IS NOT COMPLYING WITH THE TERMS OF THE DESIGNATION OR OF 15 SECTION 496, OR THAT THE PATIENT ADVOCATE IS NOT ACTING CONSIS- 16 TENT WITH THE WARD'S BEST INTERESTS, THE COURT MAY MODIFY THE 17 GUARDIANSHIP'S TERMS TO GRANT THOSE POWERS TO THE GUARDIAN. 18 Sec. 454. (1)AnyTHE COURT MAY APPOINT A competent 19 personmay be appointedAS guardian of a legally incapacitated 20 person. The court shall not appoint as guardiananyAN agency, 21 public or private,whichTHAT financially benefits from 22 directly providing housing, medical, or social services to the 23 legally incapacitated person. IF THE COURT DETERMINES THAT THE 24 WARD'S PROPERTY NEEDS PROTECTION, THE COURT SHALL ORDER THE 25 GUARDIAN TO FURNISH A BOND OR SHALL INCLUDE RESTRICTIONS IN THE 26 LETTERS OF GUARDIANSHIP AS NECESSARY TO PROTECT THE PROPERTY. 05498'98 4 1 (2) In appointing a guardian under this section, the court 2 shall appoint a person, if suitable and willing to serve, 3 designated by the person who is the subject of the petition. If 4 a specific designation is not made or a person designated is not 5 suitable or willing to serve, the court may appoint as guardian a 6 person named as attorney in fact through a durable power of 7 attorney. 8 (3) If a person is not designated under subsection (2) or a 9 person designated under subsection (2) is not suitable or willing 10 to serve, the court may appoint as a guardian a person who is 11 related to the subject of the petition, in the following order of 12 preference: 13 (a) The spouse of the legally incapacitated person, includ- 14 ing a person nominated by will or other writing signed by a 15 deceased spouse. 16 (b) An adult child of the legally incapacitated person. 17 (c) A parent of the legally incapacitated person, including 18 a person nominated by will or other writing signed by a deceased 19 parent. 20 (d) A relative of the legally incapacitated person with whom 21 the person has resided for more than 6 months before the filing 22 of the petition. 23 (e) A person nominated by the person who is caring for the 24 person or paying benefits to the person. 25 (4) If none of the persons listed in subsection (3) is suit- 26 able or willing to serve, the court may appoint any competent 27 person who is suitable and willing to serve. 05498'98 5 1 Sec. 455. (1) Except as limited under section444(3), a2guardian of444, a legally incapacitatedpersonPERSON'S 3 GUARDIAN is responsible for the WARD'S care, custody, and 4 control,of the ward,but is not liable to third persons by 5 reason of that responsibility for THE WARD'S acts.of the ward.6 In particular, and without qualifying theforegoingPROVISIONS 7 OF THE PREVIOUS SENTENCE, a guardian has the following powers and 8 duties, except as modified by COURT order:of the court:9 (a) To the extent that it is consistent with the terms of an 10 order by a court of competent jurisdiction relating to THE WARD'S 11 detention or commitment,of the ward,the guardian is entitled 12 to custody of the WARD'S personof his or her wardand may 13 establish the ward's place of residence within or without this 14 state. The guardian shall notify the court within 14 days of 15anyA change in the ward's place of residence. 16 (b) If entitled to custody of the ward, the guardian shall 17 make provision for the WARD'S care, comfort, and maintenanceof18the wardand, when appropriate, arrange for the ward's training 19 and education. The guardianshall haveHAS the responsibility 20 of securing services to restore the ward to the best possible 21 state of mental and physical well-being so that the ward can 22 return to self-management at the earliest possible time. Without 23 regard to custodial rights of the ward's person, the guardian 24 shall take reasonable care of the ward's clothing, furniture, 25 vehicles, and other personal effects and commence protective pro- 26 ceedings if other property of the wardis in need ofNEEDS 27 protection. 05498'98 6 1 (c) A guardian may giveanyconsent or approval that may 2 be necessary to enable the ward to receive medical or other pro- 3 fessional care, counsel, treatment, or service. 4 (d) If a conservator for the WARD'S estateof the wardis 5 not appointed, a guardian may DO ALL OF THE FOLLOWING: 6 (i) Institute proceedings to compel a person under a duty to 7 support the ward or to pay sums for the WARD'S welfareof the8wardto perform that duty. 9 (ii) Receive money and tangible property deliverable to the 10 ward and apply the money and property for THE WARD'S support, 11 care, and education.of the ward.The guardian may not use 12fundsMONEY from the ward's estate for room and boardwhich13 THAT the guardian or the guardian's spouse, parent, or child have 14 furnished the ward unless a charge for the service is approved by 15 COURT orderof the courtmade upon notice to at least 1 of the 16 WARD'S next of kin,of the incompetent ward,if notice is 17 possible. The guardian shall exercise care to conserve any 18 excess for the ward's needs. 19 (e)ToTHE GUARDIAN SHALL report the WARD'S conditionof20the ward and of the estate which is subject to the guardian's21possession or control,as required by the court, but not less 22 often than annually.ATHE report shall contain all of the 23 following: 24 (i) The ward's current mental, physical, and social 25 condition. 05498'98 7 1 (ii) Any improvement or deterioration in the ward's mental, 2 physical, and social condition that has occurred during the past 3 year. 4 (iii) The ward's present living arrangement andany5 changes in his or her living arrangement that have occurred 6 during the past year. 7 (iv) Whether the guardian recommends a more suitable living 8 arrangement for the ward. 9 (v) Any medical treatment received by the ward. 10 (vi) Services received by the ward. 11 (vii) A list of the guardian's visits with, and activities 12 on behalf of, the ward. 13 (viii) A recommendation as to the need for continued 14 guardianship. 15 (f) If a conservator is appointed, THE GUARDIAN SHALL PAY TO 16 THE CONSERVATOR, FOR MANAGEMENT AS PROVIDED IN THIS ACT, the 17 ward's estate received by the guardian in excess ofthose funds18 THE MONEY expended to meet current expenses for THE WARD'S sup- 19 port, care, and education.of the ward shall be paid to the con-20servator for management as provided in this act, and theTHE 21 guardian shall account to the conservator forfundsMONEY 22 expended. 23 (G) IF A CONSERVATOR IS NOT APPOINTED FOR THE WARD AND THE 24 GUARDIAN HAS CONTROL OF ANY OF THE WARD'S ESTATE, WITHIN 63 DAYS 25 AFTER APPOINTMENT, THE GUARDIAN SHALL PREPARE AND FILE WITH THE 26 APPOINTING COURT A COMPLETE INVENTORY OF THE ESTATE THAT IS 27 SUBJECT TO THE GUARDIANSHIP. 05498'98 8 1 (H) IF A CONSERVATOR IS NOT APPOINTED FOR THE WARD, THE 2 GUARDIAN SHALL FILE AN ACCOUNT WITH THE COURT OF ALL INCOME AND 3 ASSETS IN THE GUARDIAN'S CONTROL. THE GUARDIAN SHALL FILE THE 4 ACCOUNT AS REQUIRED BY THE COURT, BUT NOT LESS THAN ANNUALLY. 5 THE COURT, OR STAFF ASSIGNED BY THE COURT, SHALL REVIEW THE 6 ACCOUNTING. 7 (2) A guardian of a person for whom a conservator also is 8 appointed shall control the custody and care of the ward and is 9 entitled to receive reasonable sums for his or her services and 10 for room and board furnished to the ward as agreed upon between 11 the guardian and the conservator if the amounts agreed upon are 12 reasonable under the circumstances. The guardian may request the 13 conservator to expend the ward's estate by payment to third per- 14 sons or institutions for the ward's care and maintenance. 15 (3) If a ward dies while under guardianship,and a con- 16 servator has not been appointed for the WARD'S estate,of the17ward,and if the guardian has possession of anymoneyof the 18 deceasedwardWARD'S MONEY, the court may, upon THE GUARDIAN'S 19 petitionof the guardianand with or without notice, hear a 20 claim for burial expense or any other claim as the court consid- 21 ers advisable. Upon hearing the claim, the court may enter an 22 order allowing or disallowing the claim or any part of it and 23 provide in the order of allowance that the claim or any part of 24 it be paid immediately if the payment can be made without injury 25 or serious inconvenience to the ward's estate. 05498'98 9 1 Sec. 468. (1) The court has the following powers, which may 2 be exercised directly or through a conservator, with respect to 3 the estate and affairs of protected persons: 4 (a) While a petition for appointment of a conservator or 5 other protective order is pending and after preliminary hearing 6 and without notice to others, the court may preserve and apply 7 the property of the person to be protected as may be required for 8 the person's benefit or the benefit of the person's dependents. 9 (b) After a hearing, and upon determining that a basis for 10 an appointment or other protective order exists with respect to a 11 minor without other disability, the court has all those powers 12 over the MINOR'S estate and affairsof the minor whichTHAT are 13 or may be necessary for the best interests of the minor, the 14 minor's family, and members of the minor's household. 15 (c) After a hearing, and upon determining that a basis for 16 an appointment or other protective order exists with respect to a 17 person for reasons other than minority, the court, for the bene- 18 fit of the person and members of the person's household, has all 19 the powers over the person's estate and affairswhichTHAT the 20 person could exercise if present and not under disability, except 21 the power to make a will. These powers includethe power to22 ALL OF THE FOLLOWING: 23 (i) TO make gifts., to24 (ii) TO convey or release contingent and expectant interests 25 in property including marital property rights andanyA 26 SURVIVORSHIP rightof survivorshipincident to joint tenancy or 27 tenancy by the entirety., to05498'98 10 1 (iii) TO exercise or release powers as trustee, personal 2 representative, custodian for minors, conservator, or donee of a 3 power of appointment., to4 (iv) TO enter into contracts., to5 (v) TO create revocable or irrevocable trusts of ESTATE 6 propertyof the estate whichTHAT may extend beyond disability 7 or life., to8 (vi) TO exerciseoptions ofthe disabledpersonPERSON'S 9 OPTIONS to purchase securities or other property., to10 (vii) TO exercise rights to elect options and change benefi- 11 ciaries under insurance and annuity policies and to surrender the 12 policies for their cash value., to13 (viii) TO exercise the right to an elective share intheA 14 DECEASED SPOUSE'S estate.of a deceased spouse, and to15 (ix) TO renounceanyAN interest by testate or intestate 16 succession or by inter vivos transfer. 17 (d)TheONLY IF SATISFIED AFTER NOTICE AND A HEARING THAT 18 IT IS IN THE PROTECTED PERSON'S BEST INTERESTS AND THAT THE PRO- 19 TECTED PERSON IS INCAPABLE OF CONSENTING OR HAS CONSENTED TO THE 20 PROPOSED EXERCISE OF THE POWER, THE court may exercise, or direct 21 the exercise of, its authority toexerciseDO 1 OR MORE OF THE 22 FOLLOWING: 23 (i) EXERCISE or release powers of appointment of which the 24 protected person is donee., to renounce25 (ii) RENOUNCE interests., to make26 (iii) MAKE gifts in trust or otherwise exceeding 20% of any 27 year's ESTATE income.of the estate, or to change05498'98 11 1 (iv) CHANGE beneficiaries under insurance and annuity 2 policies., only if satisfied, after notice and hearing, that it3is in the best interests of the protected person, and that the4person is incapable of consenting or has consented to the pro-5posed exercise of power.6 (v) SELL THE PROTECTED PERSON'S REAL PROPERTY. IF THE COURT 7 DIRECTS OR AUTHORIZES A FIDUCIARY TO SELL A WARD'S REAL PROPERTY, 8 THE SALE MUST COMPLY WITH SECTIONS 634 AND 636. 9 (2) An order madepursuant toUNDER this section determin- 10 ing that a basis for appointment of a conservator or other pro- 11 tective order exists,does not affect the capacity of the pro- 12 tected person. 13 (3) To encourage the self-reliance and independence of a 14 protected person, the court may authorize the individual to func- 15 tion without the consent or supervision of the person's conserva- 16 tor in the handling of part of his or her money or property, 17 including the maintenance of a savings or checking account in a 18 bank or other institution., and, toTO the extent authorized 19, anyUNDER THIS SUBSECTION, A person may deal with that indi- 20 vidual as though the individual were mentally competent. 21 Sec. 478. (1) Within6063 days afterhis or her22 appointment, a conservator shall prepare and file with the 23 appointing court a complete inventory AND ACCOUNTING of the 24 PROTECTED PERSON'S estateof the protected persontogether with 25 an oath or affirmation that it is complete and accurate so far as 26 the conservator is informed. THE COURT, OR STAFF ASSIGNED BY THE 27 COURT, SHALL REVIEW THE ACCOUNTING. 05498'98 12 1 (2) The conservator shall provide a copy of the inventory 2 AND ACCOUNTING to the protected person if the person can be 3 located,has attained the age ofIS 14 years OF AGE OR OLDER, 4 and has sufficient mental capacity to understand these matters 5 and toanyA parent or guardian with whom the protected person 6 resides. The conservator shall keep suitable records of the 7 administration and exhibit the records on request of an inter- 8 ested person. 9 Sec. 484. (1) A conservator has all of the powers conferred 10 in this section. In addition, a conservator of the estate of an 11 unmarried minor as to whom no person has parental rights,has 12 the duties and powers of a MINOR'S guardianof a minor13 described in section 431 until the minor marries.butHOWEVER, 14 the parental rightssoconferred BY THIS SUBSECTION on a con- 15 servator do not preclude appointment of a guardian as provided 16by sections 421 to 437IN THIS ARTICLE. 17 (2) A conservator, without court authorization or confirma- 18 tion, may investandOR reinvestfunds of theestate MONEY as 19 would a trustee. 20 (3) A conservator, acting reasonably in efforts to accom- 21 plish the purpose for which he or she was appointed, may act 22 without court authorization or confirmation to DO ALL OF THE 23 FOLLOWING: 24 (a) Collect, hold,andOR retain ESTATE assetsof the25estateincluding land in another state, until in the 26 conservator's judgment, disposition of the assets should be made, 05498'98 13 1 which assets may be retained even though they include an asset in 2 which the conservator is personally interested. 3 (b) Receive additions to the estate. 4 (c) Continue or participate in the operation of a business 5 or other enterprise. 6 (d) Acquire an undivided interest in an estate asset in 7 which the conservator, in any fiduciary capacity, holds an undi- 8 vided interest. 9 (e) InvestandOR reinvest estate assets pursuant to sub- 10 section (2). 11 (f) Deposit estate funds in a bank including a bank operated 12 by the conservator. 13 (g) Acquire or, SUBJECT TO SUBSECTION (4), dispose of an 14 estate asset including land in another state for cash or on 15 credit, at public or private sale;and toOR manage, develop, 16 improve, exchange, partition, change the character of, or abandon 17 an estate asset. 18 (h) Make ordinary or extraordinary repairs or alterations in 19 buildings or other structures,todemolishanyimprovements, 20and toOR raze existing or erect new party walls or buildings. 21 (i) Subdivide, develop, or dedicate land to public use;to22 make or obtain the vacation of platsandOR adjust boundaries; 23toadjust differences in valuation on exchange, ortoparti- 24 tion by giving or receiving consideration;and toOR dedicate 25 easements to public use without consideration. 26 (j) Enter for any purpose into a lease as lessor or lessee 27 with or without option to purchase or renew for a term within or 05498'98 14 1 extending beyond the CONSERVATORSHIP'S term.of the2conservatorship.3 (k) Enter into a lease or arrangement for explorationand4 OR removal of minerals or other natural resources, or enter into 5 a pooling or unitization agreement. 6 (l) Grant an option involving disposition of an estate asset 7 ortotake an option for the acquisition ofanyAN asset. 8 (m) Vote a security, in person or by general or limited 9 proxy. 10 (n) Pay calls, assessments,and anyOR other sums charge- 11 able or accruing against or on account of securities. 12 (o) Sell or exercise stock subscription or conversion 13 rights;toOR consent, directly or through a committee or other 14 agent, to the reorganization, consolidation, merger, dissolution, 15 or liquidation of a corporation or other business enterprise. 16 (p) Hold a security in the name of a nominee or in other 17 form without disclosure of the conservatorship so that title to 18 the security may pass by delivery. The conservator is liable for 19anyAN act of the nominee in connection with the stock so 20 held. 21 (q) Insure the ESTATE assetsof the estateagainst damage 22 or loss,andOR the conservator against liability with respect 23 to third persons. 24 (r) Borrow money to be repaid from estate assets or other- 25 wise;toadvance money for the protection of the estate or the 26 protected personand for allOR FOR expenses, losses,andOR 27 liability sustained in the administration of the estate or 05498'98 15 1 because of the holding or ownership of any estate assets. The 2 conservator has a lien on the estate as against the protected 3 person for advances made under this subdivision. 4 (s) Pay or contest a claim;tosettle a claim by or 5 against the estate or the protected person by compromise, arbi- 6 tration, or otherwise;and toOR release, in whole or in part, 7 a claim belonging to the estate to the extent that the claim is 8 uncollectible. 9 (t) Pay taxes, assessments, reasonable compensation of the 10 conservator,andOR other expenses incurred in the collection, 11 care, administration,andOR protection of the estate. 12 (u) Allocate items of income or expense to estate income or 13 principal, as provided by law, including creation of reserves out 14 of income for depreciation, obsolescence, or amortization, or for 15 depletion in mineral or timber properties. 16 (v) PayanyA sum distributable to a protected person or 17 that person's dependent without liability to the conservator, by 18 paying the sum to the distributee or by paying the sum for the 19 use of the distributee to his or her guardian or if none, to a 20 relative or other person with custody of his or her person. 21 (w) Employ persons, including attorneys, auditors, invest- 22 ment advisors, or agents, even though they are associated with 23 the conservator, to advise or assist the conservator in the per- 24 formance of his or her administrative duties; to act upon their 25 recommendation without independent investigation; and instead of 26 acting personally, to employ 1 or more agents to performanyAN 27 act of administration, whether or not discretionary. 05498'98 16 1 (x) Prosecute or defend actions, claims, or proceedings in 2 any jurisdiction for the protection of estate assetsandOR of 3 the conservator in the performance of his or her duties. 4 (y) Execute and deliveranyAN instrumentwhichTHAT 5 will accomplish or facilitate the exercise of the powers vested 6 in the conservator. 7 (4) A CONSERVATOR SHALL NOT SELL A PROTECTED PERSON'S REAL 8 PROPERTY EXCEPT AS PROVIDED IN SECTION 468. 9 Sec. 636. (1) Subject to confirmation by the court,the10 A FIDUCIARY MAY SELL A WARD'S real estate,aninterest 11thereinIN REAL ESTATE, or easementof a ward may be sold by12the fiduciary in anyIN 1 OR MORE of the following instances: 13 (a)When theIF THE WARD'S personal propertyof the14personis insufficient to payhis justTHE WARD'S debts, 15 together with the charges of managinghisTHE estate orwhen16 IF it appears that it is for the WARD'S best interestof the17wardthathisTHE real estate or some partthereofOF IT be 18 sold for that purposein lieuINSTEAD of disposing of the per- 19 sonal estate. 20 (b)When theIF THE WARD'S personal propertyof the21personis insufficient to pay the expenses incurred byanyA 22 county or by the statein theFOR THE WARD'S care, support, or 23 maintenance,of the ward,together with the charges of managing 24hisTHE WARD'S estate. 25 (c)WhenIF the income of the WARD'S estateof a wardis 26 insufficient to maintain the ward andhisTHE WARD'S family or 05498'98 17 1 is insufficient to educate a minor ward or the WARD'S children. 2of a ward.3 (d)WhenIF it appears that it would be for the WARD'S 4 benefitof the wardthathisTHE real estate oranyA part 5thereofOF IT be sold and the proceedsthereofreinvested. 6 (e)When theIF THE WARD'S interestof the wardis that 7 of tenant by the entirety or is that of a joint tenant. 8 (2) For the purposes of the sale and the distribution of the 9 SALE proceedsof the saleundersubdivision (e)SUBSECTION 10 (1)(E), the interest of the WARD'S estateof the wardand the 11 other tenant shall bedeemed to beCONSIDERED equal. If the 12 sale is made of the entirety or joint interest with right of sur- 13 vivorship of the ward, upon the WARD'S death,of the ward anyA 14 surplus of the SALE proceedsof the salecoming to the ward's 15 estateshall remainREMAINS a part of the ward's estate and 16shallDOES not belong orbeIS NOT subject toanyA claim 17 of the other tenant by the entirety or other joint tenant or 18 joint tenants. 19 (3) THE COURT SHALL NOT CONFIRM A SALE UNDER THIS SECTION 20 UNLESS THE COURT FINDS THAT THE SALE AND THE SALE PRICE ARE IN 21 THE WARD'S BEST INTEREST. 05498'98 Final page. GWH