Disclaimer: This article provides general legal information under Michigan law and does not constitute legal advice.
Detailed Answer
In Michigan, probate courts use multiple checks to ensure administrators honor estate duties and bond requirements. These mechanisms protect beneficiaries, creditors, and the integrity of the estate.
1. Bond Requirement (MCL 700.3801)
Under Michigan Compiled Laws § 700.3801 (MCL 700.3801), most administrators must post a fiduciary bond before acting. The bond amount generally equals the estate’s total value. A surety company guarantees repayment if the administrator mismanages assets. The court may file a claim on the bond to recover losses.
2. Inventory and Appraisal (MCL 700.3710)
Within 91 days of appointment, administrators file an inventory and appraisal under MCL 700.3710. This document lists every estate asset and its fair market value. It sets a baseline for all future accountings and alerts the court to the estate size.
3. Periodic Accounting (MCL 700.3712)
Administrators must submit detailed accountings as required by MCL 700.3712. These accountings track receipts, expenses, distributions, and remaining assets. The probate court schedules hearings to review and approve each accounting.
4. Court Notice and Objections
Michigan Rule of Probate Procedure 5.310 and statute MCL 700.3718 require written notice to creditors and beneficiaries before approving accounts. Interested parties can object or petition for a surcharge if they suspect misconduct or errors.
5. Removal and Surcharge Actions
If an administrator acts improperly, the court can remove them under MCL 700.3712 and impose a surcharge—an order to repay losses. The probate court may hold hearings to evaluate allegations and enforce penalties.
Helpful Hints
- Confirm the bond amount matches the estate valuation in the initial inventory.
- Track inventory and accounting deadlines to maintain court compliance.
- Review bond terms carefully to understand the surety’s obligations and coverage.
- Encourage beneficiaries and creditors to review accountings and file timely objections.
- Consult a probate attorney if you detect potential misconduct or complex disputes.