Understanding Authority Options Under Michigan Law
This article explains how to establish legal authority over an elderly heir’s personal and financial decisions in Michigan. It covers durable power of attorney, health care power of attorney, and guardianship. This information does not constitute legal advice.
Durable Financial Power of Attorney
A durable financial power of attorney lets an appointed agent manage banking, investments, and bills. To create one, the principal must have capacity when signing. Michigan’s Power of Attorney Act (MCL 700.5501 et seq.) sets these rules. See MCL 700.5501. The document must be signed by the principal and two witnesses, and notarized. It remains valid if the principal later becomes incapacitated.
Health Care Power of Attorney
A health care power of attorney designates an agent to make medical and personal care decisions. It follows MCL 700.5507 et seq. See MCL 700.5507. The form requires the principal’s signature, one witness, and notarization. The agent steps in only when the principal cannot communicate treatment preferences.
Guardianship of the Person and Estate
If no power of attorney exists or capacity is disputed, you can petition probate court for guardianship under the Michigan Estates and Protected Individuals Code (EPIC). There are two types:
- Guardianship of the Person: The guardian makes personal, health, and living decisions.
- Guardianship of the Estate: The guardian manages assets, pays bills, and files taxes.
Statutory authority appears at MCL 700.5301. To obtain guardianship, you must:
- File a petition in the county probate court.
- Serve notice on the proposed ward and interested parties.
- Obtain a physician’s report on capacity.
- Attend a hearing where the court evaluates need and least-restrictive alternatives.
- Receive a court order appointing the guardian.
Guardianship remains in effect until the ward regains capacity or the court revokes the order. It carries ongoing reporting duties to the court.
Comparing the Options
- Power of Attorney avoids court intervention and is private. It depends on the principal’s capacity at signing.
- Guardianship requires judicial oversight. It suits cases where the elder can’t grant authority or capacity is contested.
Disclaimer
This article is for informational purposes only. It does not constitute legal advice. Consult a qualified Michigan attorney to discuss your specific situation.
Helpful Hints
- Act early: Establish powers of attorney while capacity is clear.
- Choose a trusted agent who acts in the ward’s best interest.
- Keep original documents in a safe, accessible place.
- Review and update powers of attorney periodically.
- Understand court costs and timelines for guardianship petitions.