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HB 5740

Probate: guardians and conservators; requirements upon discovery of certain assets; provide for. Amends secs. 5106, 5314 & 5319 of 1998 PA 386 (MCL 700.5106 et seq.).

2025-2026 Regular Session Introduced by Greg Alexander and 26 co-sponsors

HB 5740 tightens oversight of guardians and conservators under EPIC, requiring court-restricted accounts for professional fiduciaries and notifying the court within 14 days when wa

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Bill Summary · HB 5740

Summary of HB 5740 (Michigan, 2025-2026)

Purpose and Intent

HB 5740 amends the Estates and Protected Individuals Code (EPIC) to revise the powers, duties, and oversight of guardians and conservators. The bill focuses on professional guardians/conservators, thresholds for bonds or restricted accounts, enhanced reporting requirements, and procedures when new property is discovered or when estate values exceed certain limits. It also ties provisions to accompanying House Bill 5739, creating a coordinated reform of fiduciary duties under EPIC.

Key Provisions and Changes

  • Professional guardians and conservators (Article V, Part 1)

    • Allows a professional guardian or conservator appointed under EPIC to place ward funds in a restricted account, with court-determined conditions, instead of requiring an automatic bond.
    • The authorization to place funds in a restricted account is limited to amounts and conditions set by the court and does not grant broad fiduciary authority beyond the matter in hand.

  • Gaurdians for legally incapacitated individuals (Part 3)

    • Maintains the guardian’s authority to receive money and tangible property for the ward’s support, care, and education but places a cap:
    • A guardian may receive up to $25,000 in cash/property for the ward and use it for the ward’s needs.
    • If the guardian discovers or accumulates property exceeding $25,000, the guardian must notify the court within 14 days via a protective order, conservatorship petition, or instructions petition, and cannot access excess property until ordered by the court.
    • Requires periodic reporting of the ward’s condition, living arrangements, treatment, guardianship status, and related activities, with a detailed list of items to include in annual reports.
    • Requires reporting of any newly discovered property exceeding $25,000, with a process to seek court instructions regarding disposition.

  • Guardians and conservators; discovery of excess assets (Sec. 5319)

    • If financial protection is needed and no conservator is yet appointed, the court may order a conservator or protective order.
    • When cash or convertible property exceeds $25,000 and has not been previously disclosed, the guardian must report to the court within 14 days.

Who Is Affected

  • Guardians and conservators appointed under EPIC (both professional and non-professional).
  • Ward(s) and protected individuals, including those who are legally incapacitated or developmentally disabled.
  • Courts and court personnel responsible for overseeing guardianship/conservatorship matters.
  • Interested persons and the ward themselves (notified of compensation disclosures and guardian reporting changes).

Procedural and Timeline Aspects

  • Bond/Restricted Account: Court determines whether a bond is required for professional fiduciaries; under HB 5740, there is increased use of court-approved restricted accounts in lieu of standard bonds, with specific conditions.
  • $25,000 Threshold: A central trigger for enhanced oversight: discovery or accumulation of property/cash over $25,000 requires prompt court notification within 14 days.
  • Visitation and duties: Professional guardians must establish visitation schedules and ensure adequate staffing for ward care.
  • Annual reporting: Guardians must provide detailed annual reports on the ward’s condition, treatment, finances, and guardianship status.
  • Effect on real property and proceeds: Provisions regarding sale of real property by conservators and handling post-settlement proceeds are reinforced, with court-ordered deposit requirements for certain funds.

Fiscal Impact

  • The House Fiscal Agency notes an indeterminate impact on local court funding units. The changes could increase caseloads and administrative work, depending on how broadly courts implement and enforce the new thresholds and reporting requirements.

If you’d like, I can tailor this summary to a particular audience (e.g., policymakers, attorneys, or nonprofit guardianship programs) or add a side-by-side comparison with current EPIC provisions.

Compiled from official sources — confirm details with the bill’s official record.

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