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HB-5877, As Passed House, May 20, 2026
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HOUSE BILL NO. 5877
A bill to amend 1998 PA 386, entitled
"Estates and protected individuals code,"
by amending section 3912 (MCL 700.3912).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3912. (1) If property distributed in kind or a security 1
interest in that property is acquired for value by a purchaser from 2
or lender to a distributee who has received an instrument or deed 3
of distribution from the personal representative, or is so acquired 4
by a purchaser from or lender to a transferee from such a 5
April 22, 2026, Introduced by Reps. Robinson, Johnsen, Smit, DeBoyer, Fox, Roth, Kuhn, Cavitt,
Wortz, Kelly, Meerman, Aragona, Maddock, Schuette, Bruck, Bierlein, Thompson and Harris
and referred to Committee on Government Operations.
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distributee, the purchaser or lender takes title free of rights of 1
an interested person in the estate and incurs no personal liability 2
to the estate, or to an interested person, whether or not the 3
distribution was proper or supported by court order or the personal 4
representative's authority was terminated before execution of the 5
instrument or deed. 6
(2) This section protects a purchaser from or lender to a 7
distributee who, as personal representative, has executed a deed of 8
distribution to himself or herself, the personal representative's 9
own self, as well as a purchaser from or lender to another 10
distributee or his or her that person's transferee. To be protected 11
under this section, a purchaser or lender does not need to inquire 12
whether a personal representative acted properly making the 13
distribution in kind, even if the personal representative and the 14
distributee are the same person, or whether the authority of the 15
personal representative had terminated before the distribution. 16
(3) A recorded instrument described in this section on which 17
an exemption listed in section 5 of 1966 PA 135, 134, MCL 207.505, 18
or section 6 of the state real estate transfer tax act, former 1993 19
PA 330 if the instrument was recorded when former 1993 PA 330 20
applied, MCL 207.526, is not noted is prima facie evidence that the 21
transfer is made for value. Notwithstanding this section, a 22
purchaser or lender takes title free of the lien for Michigan 23
estate tax only to the extent provided by section 43 of the 24
Michigan estate tax act, 1899 PA 188, MCL 205.243. 25
Enacting section 1. This amendatory act takes effect 90 days 26
after the date it is enacted into law. 27
Enacting section 2. This amendatory act does not take effect 28
unless all of the following bills of the 103rd Legislature are 29
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Final Page
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enacted into law: 1
(a) House Bill No. 5874 (request no. H01857'25). 2
(b) House Bill No. 5880 (request no. H05876'25). 3