Michigan surety bond requirements for estate conservators changed effective October 1, 2012, as a result of Gov. Rick Snyder’s approval of HB 461 on June 19, 2012.
Section 5410 of Michigan SB 461 lists situations in which conservators no longer need a surety bond to comply with industry regulations.
“(1) The court may require a conservator to furnish a bond. If the court determines that the value of cash and property that is readily convertible into cash in the estate and in the conservator’s control exceeds the limit for administering a decedent’s estate under section 3982, adjusted in the manner provided under section 1210 for the year in which the conservator is appointed, the court shall require the conservator to furnish a bond, unless 1 or more of the following apply:
(a) The estate contains no property readily convertible to cash and the cash is in a restricted account with a financial institution.
(b) The conservator has been granted trust powers under section 4401 of the banking code of 1999, 1999 PA 276, MCL 487.14401.
(c) The court determines that requiring a bond would impose a financial hardship on the estate.
(d) The court states on the record the reasons why a bond is not necessary.”
Read SB 461 in its entirety here.
SB 461 did not alter the previous law that a conservator can use a pledge of securities or the mortgage of land as his or her security in place of the surety bond.
If you need a surety bond in Michigan or any other state, you can contact a surety expert by calling 1 (800) 308-4358 Monday through Friday from 7 a.m. to 7 p.m. CST. Or, you can simply fill out an online contact form 24/7 and wait for a surety specialist to contact you within one business day. SuretyBonds.com provides fast, easy and accurate bonding services to help individuals comply with state and industry laws.