June 28, 2006, Introduced by Senator SWITALSKI and referred to the Committee on Judiciary.
A bill to amend 1998 PA 386, entitled
"Estates and protected individuals code,"
by amending sections 1303, 2202, and 3807 (MCL 700.1303, 700.2202,
and 700.3807), sections 1303 and 2202 as amended by 2000 PA 54 and
section 3807 as amended by 2000 PA 177.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1303. (1) In addition to the jurisdiction conferred by
section 1302 and other laws, the court has concurrent legal and
equitable jurisdiction to do all of the following in regard to an
estate of a decedent, protected individual, ward, or trust:
(a) Determine a property right or interest.
(b) Authorize partition of property.
(c) Authorize or compel specific performance of a contract in
a joint or mutual will or of a contract to leave property by will.
(d) Ascertain if individuals have survived as provided in this
act.
(e) Determine cy-pres or a gift, grant, bequest, or devise in
trust or otherwise as provided in 1915 PA 280, MCL 554.351 to
554.353.
(f) Hear and decide an action or proceeding against a
distributee of a fiduciary of the estate to enforce liability that
arises because the estate was liable upon some claim or demand
before distribution of the estate.
(g) Impose a constructive trust.
(h) Hear and decide a claim by or against a fiduciary or
trustee for the return of property.
(i) Hear and decide a contract proceeding or action by or
against an estate, trust, or ward.
(j) Require, hear, or settle an accounting of an agent under a
power of attorney.
(k)
Bar an incapacitated or minor wife of her dower right.
(2) If the probate court has concurrent jurisdiction of an
action or proceeding that is pending in another court, on the
motion of a party to the action or proceeding and after a finding
and order on the jurisdictional issue, the other court may order
removal of the action or proceeding to the probate court. If the
action or proceeding is removed to the probate court, the other
court shall forward to the probate court the original of all papers
in the action or proceeding. After that transfer, the other court
shall not hear the action or proceeding, except by appeal or review
as provided by law or supreme court rule, and the action or
proceeding shall be prosecuted in the probate court as a probate
court proceeding.
(3) The underlying purpose and policy of this section is to
simplify the disposition of an action or proceeding involving a
decedent's, a protected individual's, a ward's, or a trust estate
by consolidating the probate and other related actions or
proceedings in the probate court.
Sec. 2202. (1) The surviving widow of a decedent who was
domiciled in this state and who dies intestate may file with the
court
an election in writing that she elects to take 1 of the
following:
(a)
Her her intestate share under section 2102.
(b)
Her dower right under sections 1 to 29 of 1846 RS 66, MCL
558.1
to 558.29.
(2) The surviving spouse of a decedent who was domiciled in
this state and who dies testate may file with the court an election
in
writing that the spouse elects 1 either
of the following:
(a) That the spouse will abide by the terms of the will.
(b) That the spouse will take 1/2 of the sum or share that
would have passed to the spouse had the testator died intestate,
reduced by 1/2 of the value of all property derived by the spouse
from the decedent by any means other than testate or intestate
succession upon the decedent's death.
(c)
If a widow, that she will take her dower right under
sections
1 to 29 of 1846 RS 66, MCL 558.1 to 558.29.
(3) The
surviving spouse electing under subsection (1) is
limited
to 1 choice. Unless the testator's will plainly shows a
contrary intent, the surviving spouse electing under subsection (2)
is limited to 1 choice. The right of election of the surviving
spouse under this section must be exercised during the lifetime of
the surviving spouse. The election must be made within 63 days
after the date for presentment of claims or within 63 days after
service of the inventory upon the surviving spouse, whichever is
later.
(4) Notice of right of election shall be served upon the
decedent's spouse, if any, as provided in section 3705(5), and
proof of that notice shall be filed with the court. An election as
provided by this section may be filed instead of service of notice
and filing of proof.
(5) In the case of a legally incapacitated person, the right
of election may be exercised only by order of the court in which a
proceeding as to that person's property is pending, after finding
that exercise is necessary to provide adequate support for the
legally incapacitated person during that person's life expectancy.
(6) The surviving spouse of a decedent who was not domiciled
in this state is entitled to election against the intestate estate
or against the will only as may be provided by the law of the place
in which the decedent was domiciled at the time of death.
(7) As used in subsection (2), "property derived by the spouse
from the decedent" includes all of the following transfers:
(a) A transfer made within 2 years before the decedent's death
to the extent that the transfer is subject to federal gift or
estate taxes.
(b) A transfer made before the date of death subject to a
power retained by the decedent that would make the property, or a
portion of the property, subject to federal estate tax.
(c) A transfer effectuated by the decedent's death through
joint ownership, tenancy by the entireties, insurance beneficiary,
or similar means.
Sec. 3807. (1) Upon the expiration of 4 months after the
publication date of the notice to creditors, and after providing
for administration costs and expenses, for reasonable funeral and
burial
expenses, for dower, for the homestead, family,
and exempt
property allowances, for claims already presented that have not yet
been allowed or whose allowance has been appealed, and for unbarred
claims that may yet be presented, including costs and expenses of
administration, the personal representative shall pay the claims
allowed against the estate in the order of priority as provided in
this act. A claimant whose claim has been allowed, but not paid as
provided in this section, may petition the court to secure an order
directing the personal representative to pay the claim to the
extent that property of the estate is available for the payment.
(2) The personal representative may pay a claim that is not
barred at any time, with or without formal presentation, but is
individually liable to another claimant whose claim is allowed and
who is injured by the payment if either of the following occurs:
(a) Payment is made before the expiration of the time limit
stated in subsection (1) and the personal representative fails to
require the payee to give adequate security for the refund of any
of the payment necessary to pay another claimant.
(b) Payment is made, due to the negligence or willful fault of
the personal representative, in a manner that deprives the injured
claimant of priority.
(3) If a claim is allowed, but the claimant's whereabouts are
unknown at the time the personal representative attempts to pay the
claim, upon petition by the personal representative and after
notice that the court considers advisable, the court may disallow
the claim. If the court disallows a claim under this subsection,
the claim is barred.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 1343.
of the 93rd Legislature is enacted into law.