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HB-5739, As Passed House, June 3, 2026
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HOUSE BILL NO. 5739
A bill to amend 1998 PA 386, entitled
"Estates and protected individuals code,"
by amending sections 5410 and 5423 (MCL 700.5410 and 700.5423), as
amended by 2012 PA 173.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5410. (1) The court may shall require a conservator to 1
furnish a bond . If the court determines that the value of cash and 2
property that is readily convertible into cash in the estate and in 3
the conservator's control exceeds the limit for administering a 4
decedent's estate under section 3982, adjusted in the manner 5
provided under section 1210 for the year in which the conservator 6
March 18, 2026, Introduced by Reps. DeBoyer, St. Germaine, Schmaltz, Outman, Alexander,
Cavitt, Martin, BeGole, Neyer, Wortz, Kuhn, Fox, Woolford, Thompson, Green, Kelly, Kunse,
Wilson, Edwards, Mentzer, Roth, Pavlov, Schuette, Beson, Harris, Fairbairn and Wozniak and
referred to Committee on Families and Veterans.
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is appointed, the court shall require the conservator to furnish a 1
bond, unless 1 or more of the following apply: 2
(a) The estate contains no property readily convertible to 3
cash. and the 4
(b) The estate contains readily convertible cash that is in a 5
restricted account with a financial institution except for money 6
necessary to cover a ward's cost and care on an annual basis. 7
(c) (b) The conservator has been granted trust powers under 8
section 4401 of the banking code of 1999, 1999 PA 276, MCL 9
487.14401. 10
(c) The court determines that requiring a bond would impose a 11
financial hardship on the estate. 12
(d) The court states on the record the reasons why a bond is 13
not necessary. 14
(2) A bond furnished under this section shall must be 15
conditioned upon faithful discharge of all duties of the 16
conservator's trust according to law, with sureties as the court 17
specifies. Unless otherwise directed, the bond shall be in the 18
amount of the aggregate capital value of the estate property in the 19
conservator's control plus 1 year's estimated income minus the 20
value of real property and securities deposited under arrangements 21
requiring a court order for their removal. and the value of land 22
that the fiduciary, by express limitation of power, lacks power to 23
sell or convey without court authorization. Instead of sureties on 24
a bond, the court may accept other security for the performance of 25
the bond, including a pledge of securities or a mortgage of land. 26
(3) A bond under this section may be modified or canceled only 27
by order of the court. 28
Sec. 5423. (1) Subject to a limitation imposed under section 29
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5427, a conservator has all of the powers conferred in this section 1
and the additional powers conferred by law on trustees in this 2
state. In addition, a conservator of the estate of an unmarried 3
minor, as to whom no one has parental rights, has the powers, 4
responsibilities, and duties of a guardian described in section 5
5215 until the individual is no longer a minor or marries. The 6
parental rights conferred on a conservator by this section do not 7
preclude a guardian's appointment as provided in part 2. 8
(2) Acting reasonably in an effort to accomplish the purpose 9
of the appointment and without court authorization or confirmation, 10
a conservator may do any of the following: 11
(a) Collect, hold, or retain estate property, including land 12
in another state, until the conservator determines that disposition 13
of the property should be made. Property may be retained even 14
though it includes property in which the conservator is personally 15
interested. 16
(b) Receive an addition to the estate. 17
(c) Continue or participate in the operation of a business or 18
other enterprise. 19
(d) Acquire an undivided interest in estate property in which 20
the conservator, in a fiduciary capacity, holds an undivided 21
interest. 22
(e) Invest or reinvest estate property. If the conservator 23
exercises the power conferred by this subdivision, the conservator 24
must invest or reinvest the property in accordance with the 25
Michigan prudent investor rule. 26
(f) Deposit estate money in a state or federally insured 27
financial institution including one operated by the conservator. 28
(g) Except as provided in subsection (3), acquire or dispose 29
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of estate property, including land in another state, for cash or on 1
credit, at public or private sale, or manage, develop, improve, 2
exchange, partition, change the character of, or abandon estate 3
property. 4
(h) Make an ordinary or extraordinary repair or alteration in 5
a building or other structure, demolish an improvement, or raze an 6
existing or erect a new party wall or building. 7
(i) Subdivide, develop, or dedicate land to public use; make 8
or obtain the vacation of a plat or adjust a boundary; adjust a 9
difference in valuation on exchange or partition by giving or 10
receiving consideration; or dedicate an easement to public use 11
without consideration. 12
(j) Enter for any purpose into a lease as lessor or lessee 13
with or without option to purchase or renew for a term within or 14
extending beyond the term of the conservatorship. 15
(k) Enter into a lease or arrangement for exploration and 16
removal of a mineral or other natural resource or enter into a 17
pooling or unitization agreement. 18
(l) Grant an option involving disposition of estate property or 19
take an option for the acquisition of property. 20
(m) Vote a security, in person or by general or limited proxy. 21
(n) Pay a call, assessment, or other amount chargeable or 22
accruing against or on account of a security. 23
(o) Sell or exercise stock subscription or conversion rights. 24
(p) Consent, directly or through a committee or other agent, 25
to the reorganization, consolidation, merger, dissolution, or 26
liquidation of a corporation or other business enterprise. 27
(q) Hold a security in the name of a nominee or in other form 28
without disclosure of the conservatorship so that title to the 29
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security may pass by delivery. However, the conservator is liable 1
for an act of the nominee in connection with the stock so held. 2
(r) Insure the estate property against damage or loss or the 3
conservator against liability with respect to third persons. 4
(s) Borrow money to be repaid from estate property or 5
otherwise. 6
(t) Advance money for the protection of the estate or the 7
protected individual, and for all expense, loss, or liability 8
sustained in the estate's administration or because of the holding 9
or ownership of estate property. The conservator has a lien on the 10
estate as against the protected individual for such an advance. 11
(u) Pay or contest a claim; settle a claim by or against the 12
estate or the protected individual by compromise, arbitration, or 13
otherwise; and release, in whole or in part, a claim belonging to 14
the estate to the extent that the claim is uncollectible. 15
(v) Pay a tax, assessment, conservator's compensation, or 16
other expense incurred in the estate's collection, care, 17
administration, and protection. 18
(w) Allocate an item of income or expense to either estate 19
income or principal, as provided by law, including creation of a 20
reserve out of income for depreciation, obsolescence, or 21
amortization, or for depletion in mineral or timber property. 22
(x) Pay money distributable to a protected individual or the 23
protected individual's dependent by paying the money to the 24
distributee or by paying the money for the use of the distributee 25
to the distributee's guardian, or if none, to a relative or other 26
person having custody of the distributee. 27
(y) Employ a person, including an auditor, investment advisor, 28
or agent, even though the person is associated with the 29
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conservator, to advise or assist in the performance of an 1
administrative duty; act upon on the person's recommendation 2
without independent investigation; and, instead of acting 3
personally, employ an agent to perform an act of administration, 4
whether or not discretionary. 5
(z) Employ an attorney to perform necessary legal services or 6
to advise or assist the conservator in the performance of the 7
conservator's administrative duties, even if the attorney is 8
associated with the conservator, and act without independent 9
investigation upon the attorney's recommendation. An attorney 10
employed under this subdivision shall must receive reasonable 11
compensation for his or her employment. 12
(aa) Prosecute or defend an action, claim, or proceeding in 13
any jurisdiction for the protection of estate property and of the 14
conservator in the performance of a fiduciary duty. 15
(bb) Execute and deliver an instrument that will accomplish or 16
facilitate the exercise of a power vested in the conservator. 17
(cc) Respond to an environmental concern or hazard affecting 18
property as provided in section 5424. 19
(3) A conservator shall not sell or otherwise dispose of the 20
protected individual's principal dwelling, real property, or 21
interest in real property or mortgage, pledge, or cause a lien to 22
be placed on any such property without approval of the court. The 23
court shall only approve the sale, disposal, mortgage, or pledge of 24
or lien against the principal dwelling, real property, or interest 25
in real property if, after a hearing with notice to interested 26
persons as specified in the Michigan court rules, the court 27
considers evidence of the value of the property and otherwise 28
determines that the sale, disposal, mortgage, pledge, or lien is in 29
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Final Page
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the protected individual's best interest. 1
(4) After the sale of any real property approved by the court 2
under subsection (3), the court shall order the deposit of any 3
postsettlement proceeds into a specific financial account under the 4
oversight of the conservator. 5
(5) Not later than 14 days after the receipt of property that 6
is at least $25,000.00 in value that has not been previously 7
disclosed to the court, the conservator shall petition the court 8
for instructions on what to do with the property. If the property 9
described in this subsection is cash or property readily 10
convertible to cash, the court shall order the deposit of the 11
property into a specific financial account under the oversight of 12
the conservator. 13
Enacting section 1. This amendatory act does not take effect 14
unless House Bill No. 5740 of the 103rd Legislature is enacted into 15
law. 16