A Guide to Conservatorships in Michigan
Navigating adult and minor conservatorships within the Michigan probate courts can be complex, but it is vital to ensure the protection of individuals unable to manage their affairs independently. At Thompson Legal, our expert conservatorship lawyers understand the importance of clarity and guidance in conservatorship matters. In this article, Thompson Legal, will delve into the important aspects of adult and minor conservatorships in Michigan, shedding light on the requirements, and legal providing valuable insights for those seeking a deeper understanding.
1. Introduction to Conservatorships:
Conservatorships play a vital role in safeguarding the interests of individuals who are deemed incapacitated or unable to manage their financial and personal affairs. Michigan law recognizes both Adult and Minor Conservatorships, each tailored to address specific needs and concerns. In both cases, a conservator takes on the responsibility of helping to manage some or all of the income, savings, and property of the adult or minor, who is referred to as the protected person.
2. Types of Conservatorships in Michigan:
Adult Conservatorships:
Adult Conservatorships are established when an individual, often due to age, illness, or disability, requires assistance in managing financial matters. The conservator assumes the responsibility of handling income, paying bills, managing assets, and making financial decisions on behalf of the protected person. A conservatorship may also be necessary in cases where an individual is unable to manage their property and affairs effectively due to:
Chronic intoxication,
Chronic use of drugs,
Confinement,
Detention by a foreign power,
Disappearance,
Mental deficiency,
Mental illness, or
Physical illness or disability.
Minor Conservatorships:
In cases involving minors, a Minor Conservatorship may be established to address similar financial management needs. Minors are not allowed to have proceeds in excess of five thousand dollars, or hold title to real estate, businesses, or other similar assets. This often arises when a minor inherits significant assets or receives a substantial settlement, requiring a responsible party to oversee financial matters until the minor reaches adulthood. A minor may require a Minor Conservatorship if they:
Have or may have business affairs that may be jeopardized or prevented by minority,
Needs money for support and education, and that protection is necessary or desirable to obtain or provide money, or
Owns money or property that requires management or protection that cannot otherwise be provided.
Protective Orders:
Similarly, to a Conservatorship, a Protective Order is designed to be used to request further protection or order of the court when needed in a particular transaction or situation, involving a single court action or appearance, and is sought when an on-going conservatorship is not necessary. Parties can request court affirm one-off transactions on behalf of the protected individual, like a refinance signing. To request a Protective Order, parties should use the same Petition for Appointment Form, PC 639 and clearly indicate on the heading that a protective order is requested.
3. Legal Standards for Conservatorships:
The establishment of conservatorships in Michigan is grounded in legal findings that the individual is incapacitated and unable to make sound financial decisions. This incapacity may arise legally, due to the party being under the age of 18, or due to an existing warranting a guardianship. The legal process may involve a thorough examination of the individual's capacity, ensuring that the conservatorship is necessary and in the best interests of the protected person.
4. Appointment Process:
The appointment of a conservator involves a regimented legal process. Courts in Michigan are responsible for appointing conservators, and the process includes comprehensive assessments, hearings, and considerations to guarantee a fair and just appointment.
To begin the legal process of a Conservatorship, a party must file a petition in the probate court where the protected person lives, or where the protected person’s property is located. Notice of the petition, hearing, and the protected person’s rights must be properly served. If the legal standard for a Conservatorship is met, a party will be appointed Conservator of the protected person’s Estate and receive corresponding Letters of Authority.
5. Roles and Responsibilities of Conservators:
Conservators shoulder significant responsibilities, acting as fiduciaries entrusted with managing the financial affairs of the protected person. This includes handling income, paying bills, making financial investments, and reporting to the court on the status of the conservatorship. The first step for many Conservators is to qualify for and post a fiduciary bond.
A fiduciary bond is a type of legal tool that protects beneficiaries in the event that the Conservator, a fiduciary, does not act with integrity or fails to carry out their duties. A fiduciary bond acts as a form of insurance against Conservator asset misappropriation. After the bond is secured, the fiduciary will be required to file the appropriate paperwork with the court, and keep the bond company informed on all future petitions. The conservator must keep the minor’s assets separate from his or her own and never “borrow” from the minor’s assets.
Within 56 days of appointed, the conservator must file an Inventory listing of all assets of the protected person. Assets may consist of real estate, stocks, bonds, certificates of deposit, savings and checking accounts and personal belongings and everything in which the protected adult or minor has an interest. Copies of the inventory, including supporting receipts, must also be given to the individual and the interested persons.
Additionally, within 56 days of the anniversary of the Conservator’s appointment, the Conservator must file an Accounting. The conservator must keep careful records of all income, expenses, and disbursements of conservatorship funds. Accounting are required to be set for an allowance hearing not less than every three years. If an interested party objects to the materials presented, a hearing before a judge must be held. The conservator must maintain careful records, and all payments from the individual's funds or other property should be supported by proof of payment or a receipt with a note describing the purpose of the payment.
6. Ongoing Court Oversight:
Michigan courts maintain a watchful eye over conservatorships, ensuring ongoing compliance with legal requirements. Due to the vulnerable nature of the protected individual and the likelihood of asset misappropriation, Conservatorships are continually subject to oversight by the probate court. This oversight is crucial for addressing any challenges or issues that may arise during the conservatorship, promoting accountability and protecting the rights of the individual under guardianship.
7. Who Can Be Conservator?
The probate point will appoint a party as the Conservator, a fiduciary for the protected individual. The court may appoint a person, professional conservator, or a fiduciary corporation as Conservator. Under MCL 700.5409, Michigan establishes the following priority order of appointment for Conservators:
(a) A conservator or similar fiduciary recognized by the appropriate court of another jurisdiction in which the protected individual resides;
(b) An individual or corporation nominated by the protected individual if he or she is 14 years of age or older and of sufficient mental capacity to make an intelligent choice, including a nomination made in a durable power of attorney,
(c) The protected individual's spouse,
(d) An adult child of the protected individual.=,
(e) A parent of the protected individual or a person nominated by the will of a deceased parent,
(f) A relative of the protected individual with whom he or she has resided for more than 6 months before the petition is filed,
(g) A person nominated by the person who is caring for or paying benefits to the protected individual,
(h) If none of the persons listed in subdivisions (a) to (g) are suitable and willing to serve, any person that the court determines is suitable and willing to serve.
In that case that two parties have equal priority request to be Conservator, the probate court will select the person that the court considers best qualified to serve. The probate court has the ability to pass over a party having a higher priority of appointment for a lower priority party if it is in the best interest of the protected person.
8. Termination and Modification:
Conservatorships are not indefinite. The legal system provides mechanisms for the termination or modification of conservatorships, especially when there are changes in the capacity of the protected person or when the circumstances that led to the conservatorship evolve.
Any interested party over the age of 14 may file a petition to modify or terminated the Conservatorship or Conservator. With the court’s permission, the Conservator can also resign at any time. When the minor reaches 18 years of age or when a protected adult passes away the court should be notified so that the Conservatorship can be closed. Before the Conservator can be discharged, a Final Accounting will have to be required by the court, and a minor will be required to verify they received their proceeds with a receipt.
Legal Resources
For those seeking a deeper understanding of Adult and Minor Conservatorships in Michigan, we highly recommend exploring the materials provided by the Michigan Courts. Below is a list of approved forms typically used throughout the Michigan Conservatorship process for your reference.
Court forms to use:
What You Need to Know before Filing a Petition to Appoint a Conservator, PC 667
Notice on Petition for Conservator or Protective Order, PC 668
Bond of Fiduciary, PC 570
Petition for Appointment of Conservator and/or Protective Order, PC 639
Acceptance of Appointment, PC 571
Inventory, PC 674
Petition to Allow Accounts, PC585a
Verification of Restricted Accounts, PC 669
Petition to Use Funds, PC 673m
Minor Conservatorship, Final Accounting, PC 648m
Accounting (Long Form), PC 584
Accounting (Short Form), PC 583
Petition to Terminate or Modify, PC 676
Receipt of Ward and Discharge, PC 649
Conclusion
At Thompson Legal, we are committed to providing expert conservatorship guidance for adult and minor conservatorships. If you have specific questions or require legal assistance, our team is ready to offer personalized support tailored to your unique needs. Contact Thompson Legal for a consultation from a conservatorship lawyer and learn more about how Thompson Legal can assist you. We are here to empower you with knowledge and guide you through the legal intricacies, ensuring the well-being and protection of your loved ones.
This blog is for informational purposes only. It is not intended as legal advice. In the event you would like to speak with an experienced probate attorney about your case Contact Us at (734) 743-1646 to schedule a consultation.
