Posted on: Wednesday, December 19th, 2012
Over the last few years Michigan lawmakers have cooperated with some aging advocacy groups to develop a package of laws intended to deter abuse of older adults.
In June, Governor Snyder signed ten of those bills into law. Eight bills in this package remain pending.
Most of the bills that have been signed into law deal with criminal charges for financial abuse and reporting requirements for physical abuse and neglect. As such, they have little relevance to most probate attorneys.
An exception among the bills that are now law is Senate Bill 461 (Public Act 173 of 2012). To read the new law click here:
First, SB 461 modifies the so-called “slayer statute” (MCL 700.2802 – 700.2804). The slayer statute has long held that a person convicted of murdering someone cannot inherit from the person they murdered. That statute is now extended to preclude a person convicted of a felony financial exploitation crime from inheriting from the person they exploited; unless, after the conviction, the victim of exploitation creates new estate planning documents (or modifies existing ones) to expressly include the perpetrator of the crime.
SB 461 also expands the role of a guardian ad litem in an adult guardianship matter to require them to provide additional information to the ward and the court. A new form outlining the rights of a guardianized adult is to be created which the GAL will be required to serve on the ward as part of his/her duties. These changes will appear in MCL 700.5306.
Finally, SB 461 requires probate courts handling guardianship matters to inquire as to the possible need for a conservator in each case, and for the guardian ad litem and guardian to report the resources of the ward to the court so that it can make this determination. These provisions now appear in MCL 700.5319. Where a conservator is appointed, and where the amount of assets “readily convertible into cash” exceeds the amount for a small estate pursuant to MCL 700.3982, the court is required to set bond or explain why it has not done so. These changes appear in MCL 700.5410
As indicated above, there are more “elder abuse” bills pending. The most troublesome of those deals with the disclosures required by banks to parties seeking to create joint accounts. Having litigated the joint account/convenience account issues before, I have concerns about these proposed laws. Such notice laws, while intended to alert to elders to the risks of establishing joint accounts, will likely only make it harder to set aside the unintended survivorship rights resulting form the creation of these accounts if these bills become law. These proposed changes are currently found in Senate Bills 456,460, 604 and 605.
Three other pending bills, Senate Bills 467, 706 and 777, would make it harder for annuity salespersons to sell inappropriate annuities to senior citizens. A good thing.