SB-1450, As Passed Senate, November 10, 2004                                

SUBSTITUTE FOR

SENATE BILL NO. 1450

                                                                             A bill to amend 1998 PA 386, entitled                                             

"Estates and protected individuals code,"                                   

by amending section 3705 (MCL 700.3705).                                    

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 3705.  (1) Not later than 28 days after a personal                     

2   representative's appointment or other time specified by court               

3   rule, the personal representative, except a special personal                

4   representative, shall give notice of the appointment to the                 

5   decedent's heirs and devisees, except those who have executed a             

6   written waiver of notice, including, if there has been no formal            

7   testacy proceeding and if the personal representative is                    

8   appointed on the assumption that the decedent died intestate, the           

9   devisees in a will mentioned in the application for appointment             

10  of a personal representative and to the trustee of a trust                  

11  described in section 7501(1) as to which the decedent was                   

1   settlor.  The personal representative shall give the notice by              

2   personal service or by ordinary first-class mail to each person             

3   required to receive notice under this subsection whose address is           

4   reasonably available to the personal representative.  However,              

5   the personal representative is not required to notify a person              

6   who was adjudicated in a prior formal testacy proceeding to have            

7   no interest in the estate.  The notice required under this                  

8   section subsection must be in a form approved by the supreme              

9   court and must include all of the following information:                    

10      (a) That the court will not supervise the personal                          

11  representative.  This statement shall not be included if the                

12  appointment is made in a supervised proceeding under part 5 of              

13  this article.                                                               

14      (b) That, unless a person files a written objection to the                  

15  appointment of the person named as personal representative in the           

16  notice or files a demand that bond or higher bond be posted, the            

17  person named in the notice is the personal representative without           

18  bond or with bond in the amount shown in the notice.  This                  

19  statement shall not be included if the personal representative is           

20  appointed in a formal appointment proceeding.                               

21      (c) The name and address of the person appointed as the                     

22  estate's personal representative.                                           

23      (d) That, during the course of administering the estate, the                

24  personal representative must provide all interested persons with            

25  all of the following:                                                       

26                                                                               (i) A copy of the petition for the personal representative's                        

27  appointment and a copy of the will, if any, with the notice.                

1       (ii) A copy of the inventory.                                                

2       (iii) A copy of the settlement petition or of the closing                    

3   statement.                                                                  

4       (iv) Unless waived, a copy of the account, including, but not                

5   limited to, fiduciary fees and attorney fees charged to the                 

6   estate.                                                                     

7       (e) That an interested person may petition the court for a                  

8   court hearing on any matter at any time during the estate's                 

9   administration, including, but not limited to, distribution of              

10  assets and expenses of administration.                                      

11      (f) That federal and Michigan estate taxes, if any, must be                 

12  paid within 9 months after the date of the decedent's death or              

13  another time period specified by law, to avoid penalties.                   

14      (g) That, if the estate is not settled within 1 year after                  

15  the personal representative's appointment, within 28 days after             

16  the anniversary of the appointment, the personal representative             

17  must file with the court and send to each interested person a               

18  notice that the estate remains under administration and must                

19  specify the reason for the continuation of settlement                       

20  proceedings.  If such a notice is not received, an interested               

21  person may petition the court for a hearing on the necessity for            

22  continued administration or for closure of the estate.                      

23      (h) The identity and location of the court where papers                     

24  relating to the estate are on file.                                         

25      (2) The personal representative's failure to give the                       

26  information required by subsection (1) is a breach of the                   

27  personal representative's duty to the persons concerned, but does           

1   not affect the validity of the personal representative's                    

2   appointment, powers, or other duties.  A personal representative            

3   may inform other persons of the appointment by delivery or                  

4   ordinary first-class mail.                                                  

5       (3) A personal representative shall also give notice that                   

6   includes the information described in subsection (1) to the                 

7   attorney general, public administration division, under any of              

8   the following circumstances:                                                

9       (a) It appears from the petition that the decedent died                     

10  intestate without leaving a known heir.                                     

11      (b) In the administration of an intestate estate, it appears                

12  that the decedent did not leave a known heir.                               

13      (c) In the administration of a testate estate, it appears                   

14  that devisees of the purported will would not be entitled to                

15  share in the estate but for the terms of the will and that the              

16  decedent died without leaving a known heir.                                 

17      (4) If notice is required to be given to the attorney general               

18  under subsection (3), the attorney general, representing the                

19  state, has all the rights of an heir to be heard and to contest             

20  the validity of a claim, the appointment of a personal                      

21  representative, an action of the personal representative, an                

22  order, an appointment, or an instrument purporting to be a                  

23  decedent's contract or will, and has all the rights granted or              

24  accruing to an heir, representative, or creditor by a law                   

25  relating to the settlement of a testate or intestate estate in              

26  court, or by way of rehearing or appeal.                                    

27      (5) Within 28 days after the personal representative's                      

1   appointment or another time specified by court rule, the personal           

2   representative, except a special personal representative, shall             

3   notify the decedent's surviving spouse, if any, of the spouse's             

4   right to election under part 2 of article II and of the time                

5   within which the election must be exercised.                                

6   (6) Except as otherwise provided in this subsection, at the                 

7   same time the notice required by subsection (1) is given, the               

8   personal representative shall give notice to the friend of the              

9   court for the county in which the estate is being administered,             

10  which notice identifies the decedent's surviving spouse and the             

11  individuals who are, for a testate estate, the devisees or, for             

12  an intestate estate, the heirs.  The personal representative is             

13  not required to notify the friend of the court of a devise to a             

14  trustee of an existing trust or to a trustee under the will.                

15  Notwithstanding section 3808, a personal representative incurs no           

16  obligation or liability to the friend of the court or to another            

17  person for an error or omission made in good faith compliance               

18  with this subsection.

19      Enacting section 1.  This amendatory act takes effect                       

20  October 1, 2005.                                                            

21      Enacting section 2.  This amendatory act does not take                      

22  effect unless Senate Bill No. 1447 of the 92nd Legislature is               

23  enacted into law.