If you’re serving as the conservator, personal representative, guardian or trustee and you’re at risk of doing something wrong – whether it’s theft, misappropriation or just breaching your duties in that fiduciary role – the court wants to make sure that there’s a guarantee. A guarantee of that performance, so how do you do this? If you are an individual or serving as a fiduciary and you steal or misappropriate money, the court can go after you and seek the return of the money. This is part of the Bond of Fiduciary.
The Bond of Fiduciary is a State Court Administrative Office form. If you need this form or any other probate court forms, please reach out to us. We will be happy to provide you with this document and any other necessary probate court documents.
Most of these State Court Administrative Office forms are associated with Michigan Court Rules and statutes. This is no different. The Bond of Fiduciary is associated with MCL 700.3601, which states:
(1) Prior to receiving letters, a personal representative shall qualify by filing with the appointing court any required bond and a statement of acceptance of the duties of the office.
(2) In filing the statement of acceptance, the personal representative may exclude from the scope of the personal representative’s responsibility, for a period not to exceed 91 days, real estate or an ownership interest in a business entity if the personal representative reasonably believes the real estate or other property owned by the business entity is or may be contaminated by a hazardous substance, or is or has been used for any activity directly or indirectly involving a hazardous substance, that could result in liability to the estate or otherwise impair the value of property held in the estate. The personal representative must identify the real estate or ownership interest being excluded and shall specify the time period of exclusion.
(3) If the personal representative identifies excluded property under subsection (2), the personal representative’s responsibilities extend to the excluded property at the end of the exclusion period or upon the personal representative’s notice to the court of acceptance of that property, unless, before the end of the exclusion period, the personal representative requests the court to appoint a special personal representative with respect to the excluded property or to exercise administrative authority over the excluded property by direct judicial order.
(4) In response to a request by the general personal representative under subsection (3), the court may do either of the following:
(a) Appoint a special personal representative with the duty and authority to collect and manage the excluded property, but only to the extent necessary for proper settlement of the estate and to preserve, account with respect to, and distribute or otherwise dispose of the excluded property as directed by the general personal representative or other court order.
(b) Directly administer the excluded property by judicial orders without the appointment of a personal representative with respect to the property.
In addition to this, the Bond of Fiduciary is pursuant to MCL 700.3604, MCL 700.5106(3), MCL 700.5410 and MCL 700.5411. To help you understand this form better, Darren Findling of The Probate Pro covers everything you’ll need to know in this video.
Like Darren, we’re ready to help you understand all things related to probate. So, if you have any probate related questions, don’t hesitate to give The Probate Pro a call today at (833) PROBATE. Our legal family is ready to help you.