SB-0461, As Passed Senate, November 2, 2011

SUBSTITUTE FOR

SENATE BILL NO. 461

A bill to amend 1998 PA 386, entitled

"Estates and protected individuals code,"

by amending sections 2802, 2803, 2804, 5314, 5315, 5316, 5410,

5422, and 5423 (MCL 700.2802, 700.2803, 700.2804, 700.5314,

700.5315, 700.5316, 700.5410, 700.5422, and 700.5423), section 5314

as amended by 2000 PA 469, section 5316 as amended by 2000 PA 54,

and section 5423 as amended by 2005 PA 204, and by adding section

5306a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2802. As used in this section and sections 2803 and 2804:

(a) "Abuse, neglect, or exploitation" means any of the

following:

(i) An intentional act, the commission of which is a felony,

prohibited under chapter XXA of the Michigan penal code, 1931 PA

328, MCL 750.145m to 750.145r.

(ii) A violation of section 174a of the Michigan penal code,

1931 PA 328, MCL 750.174a.

(iii) A criminal act that is an offense involving domestic

violence as that term is defined in section 27b of chapter VIII of

the code of criminal procedure, 1927 PA 175, MCL 768.27b.

(iv) An act that constitutes child abuse under section 136b of

the Michigan penal code, 1931 PA 328, MCL 750.136b.

(v) A criminal act that constitutes abuse, neglect, or

exploitation as those terms are defined in section 11 of the social

welfare act, 1939 PA 280, MCL 400.11.

(b) ~~(a)~~ "Disposition or appointment of property" includes, but

is not limited to, a transfer of an item of property or another

benefit to a beneficiary designated in a governing instrument.

committing the abuse, neglect, or exploitation.

(d) ~~(b)~~ "Governing instrument" means a governing instrument

executed by the decedent.

(e) ~~(c)~~ "Revocable" means, with respect to a disposition,

appointment, provision, or nomination, one under which the

decedent, at the time of or immediately before death, was alone

empowered, by law or under the governing instrument, to cancel the

designation in favor of the killer or felon, whether or not the

decedent was then empowered to designate himself or herself in

place of his or her killer or felon and whether or not the decedent

then had the capacity to exercise the power.

Sec. 2803. (1) An individual who feloniously and intentionally

kills or who is convicted of committing abuse, neglect, or

exploitation with respect to the decedent forfeits all benefits

under this article with respect to the decedent's estate, including

an intestate share, an elective share, an omitted spouse's or

child's share, a homestead allowance, a family allowance, and

exempt property. If the decedent died intestate, the decedent's

intestate estate passes as if the killer or felon disclaimed his or

her intestate share.

(2) The felonious and intentional killing or the conviction of

the felon for the abuse, neglect, or exploitation of the decedent

does all of the following:

(a) Revokes all of the following that are revocable:

(i) Disposition or appointment of property made by the decedent

to the killer or felon in a governing instrument.

(ii) Provision in a governing instrument conferring a general

or nongeneral power of appointment on the killer or felon.

(iii) Nomination of the killer or felon in a governing

instrument, nominating or appointing the killer or felon to serve

in a fiduciary or representative capacity, including a personal

representative, executor, trustee, or agent.

(b) Severs the interests of the decedent and killer or felon

in property held by them at the time of the killing, abuse,

neglect, or exploitation as joint tenants with the right of

survivorship, transforming the interests of the decedent and killer

or felon into tenancies in common.

(3) A severance under subsection (2)(b) does not affect a

third party interest in property acquired for value and in good

faith reliance on an apparent title by survivorship in the killer

or felon unless a writing declaring the severance has been noted,

registered, filed, or recorded in records appropriate to the kind

and location of the property that are relied upon, in the ordinary

course of transactions involving that type of property, as evidence

of ownership.

(4) A provision of a governing instrument is given effect as

if the killer or felon disclaimed all provisions revoked by this

section or, in the case of a revoked nomination in a fiduciary or

representative capacity, as if the killer or felon predeceased the

decedent.

(5) A killer's or felon's wrongful acquisition of property or

interest not covered by this section shall be treated in accordance

with the principle that a killer or felon cannot profit from his or

her wrong.

(6) After all right to appeal has been exhausted, a judgment

of conviction establishing criminal accountability for the

felonious and intentional killing or the abuse, neglect, or

exploitation of the decedent conclusively establishes the convicted

individual as the decedent's killer or as a felon, as applicable,

for purposes of this section. In With respect to a claim of

felonious and intentional killing, in the absence of a conviction,

the court, upon the petition of an interested person, shall

determine whether, under the preponderance of evidence standard,

the individual would be found criminally accountable for the

felonious and intentional killing of the decedent. If the court

determines that, under that standard, the individual would be found

criminally accountable for the felonious and intentional killing of

the decedent, the determination conclusively establishes that

individual as the decedent's killer for purposes of this section.

(7) This section does not apply if the forfeiture, revocation,

or severance would occur because of abuse, neglect, or exploitation

and the decedent executed a governing instrument after the date of

the conviction expressing a specific intent to allow the felon to

inherit or otherwise receive the estate or property of the

decedent.

Sec. 2804. (1) Except as otherwise provided in this section, a

payor or other third party is not liable for having made a payment

or transferred an item of property or another benefit to a

beneficiary designated in a governing instrument affected by an

intentional and felonious killing or by abuse, neglect, or

exploitation, or for having taken another action in reliance on the

validity of the governing instrument, upon request and satisfactory

proof of the decedent's death. A payor or other third party is

liable for a payment made or other action taken 3 10 or more

business days after the payor or other third party actually

receives written notice of a claimed forfeiture or revocation under

section 2803. A payor or other third party is not obligated to

determine whether the decedent was the victim of felonious killing

or abuse, neglect, or exploitation or to seek evidence relating to

such a killing or abuse, neglect, or exploitation even if the

circumstances of the decedent's death are suspicious as to the

beneficiary's participation in such a killing or if there is

evidence that would raise suspicions that the decedent was the

victim of abuse, neglect, or exploitation by the beneficiary. A

recipient who incorrectly receives a payment, transfer of property,

or other benefit is liable for the payment or transfer received,

whether or not written notice of the claim is given.

(2) Written notice of a claimed forfeiture or revocation under

subsection (1) must be mailed to the payor's or other third party's

main office or home by registered or certified mail, return receipt

requested, or served upon the payor or other third party in the

same manner as a summons in a civil action. Notice to a sales

representative of a payor or other third party does not constitute

notice to the payor or other third party.

(3) The written notice under subsection (1) must include all

of the following information:

(a) The decedent's name, ~~the~~ age, and date of birth, and 1 of

the following:

(i) The last 4 digits of the decedent's social security number.

(ii) The decedent's last known address.

(b) The name of the person asserting an interest. ~~, the~~

benefit. ~~, and a~~

(d) A statement that a claim of forfeiture or revocation is

being made under section 2803.

(e) If the claim is based on a conviction for abuse, neglect,

or exploitation, a copy of the judgment of conviction.

(4) Notice in a form or service in a manner other than that

described in this section does not impose liability on a payor or

other third party for an action taken in accordance with a

governing instrument.

(5) ~~(4)~~ Upon receipt of written notice of a claimed forfeiture

or revocation under this section, a payor or other third party may

pay an amount owed to the county treasurer of the county of the

court having jurisdiction of the probate proceedings relating to

the decedent's estate or, if no proceedings have been commenced, to

the county treasurer of the county of the decedent's residence.

With a payment under this section, the payor or other third party

shall file a copy of the written notice received by the payor or

other third party. A payment made to the county treasurer

discharges the payor or other third party from a claim for the

value of an amount paid to the county treasurer.

(6) ~~(5)~~ The county treasurer shall not charge a filing fee for

a payment to the county treasurer under this section. The county

treasurer shall hold the money in accordance with section 3917 and,

upon the court's determination under section 2803, shall disburse

the money in accordance with the determination.

(7) ~~(6)~~ The provision for payment to the county treasurer

under this section does not preclude a payor or other third party

from taking another action authorized by law or the governing

instrument.

Sec. 5306a. (1) An individual for whom a guardian is appointed

under section 5306 has all of the following rights:

(a) To object to the appointment of a successor guardian by

will or other writing, as provided in section 5301.

(b) To have the guardianship proceeding commenced and

conducted in the place where the individual resides or is present

or, if the individual is admitted to an institution by a court, in

the county in which the court is located, as provided in section

5302.

of a guardian, as provided in section 5303.

(d) To have legal counsel of his or her own choice represent

him or her on the petition to appoint a guardian, as provided in

sections 5303, 5304, and 5305.

(e) If he or she is not represented by legal counsel, to the

appointment of a guardian ad litem to represent the individual on

the petition to appoint a guardian, as provided in section 5303.

(f) To an independent evaluation of his or her capacity by a

physician or mental health professional, at public expense if he or

she is indigent, as provided in section 5304.

(g) To be present at the hearing on the petition to appoint a

guardian and to have all practical steps taken to ensure this,

including, if necessary, moving the hearing site, as provided by

section 5304.

(h) To see or hear all the evidence presented in the hearing

on the petition to appoint a guardian, as provided in section 5304.

(i) To present evidence and cross-examine witnesses in the

hearing on the petition to appoint a guardian, as provided in

section 5304.

(j) To a trial by jury on the petition to appoint a guardian,

as provided in section 5304.

(k) To a closed hearing on the petition to appoint a guardian,

as provided in section 5304.

(l) If a guardian ad litem is appointed, to be personally

visited by the guardian ad litem, as provided in section 5305.

(m) If a guardian ad litem is appointed, to an explanation by

the guardian ad litem of the nature, purpose, and legal effects of

a guardian's appointment, as provided in section 5305.

(n) If a guardian ad litem is appointed, to an explanation by

the guardian ad litem of the individual's rights in the hearing

procedure, as provided in section 5305.

(o) If a guardian ad litem is appointed, to be informed by the

guardian ad litem of the right to contest the petition, to request

limits on the guardian's powers, to object to a particular person

being appointed guardian, to be present at the hearing, to be

represented by legal counsel, and to have legal counsel appointed

if the individual is unable to afford legal counsel, as provided in

section 5305.

(p) To be informed of the name of each person known to be

seeking appointment as guardian, including, if a guardian ad litem

is appointed, to be informed of the names by the guardian ad litem

as provided in section 5305.

(q) To require that proof of incapacity and the need for a

guardian be proven by clear and convincing evidence, as provided in

section 5306.

(r) To the limitation of the powers and period of time of a

guardianship to only the amount and time that is necessary, as

provided in section 5306.

(s) To a guardianship designed to encourage the development of

maximum self-reliance and independence as provided in section 5306.

(t) To prevent the grant of powers to a guardian if those

powers are already held by a valid patient advocate, as provided in

section 5306.

(u) To periodic review of the guardianship by the court,

including the right to a hearing and the appointment of an attorney

if issues arise upon the review of the guardianship, as provided in

section 5309.

(v) To, at any time, seek modification or termination of the

guardianship by informal letter to the judge, as provided in

section 5310.

(w) To a hearing within 28 days of requesting a review,

modification, or termination of the guardianship, as provided in

section 5310.

(x) To the same rights on a petition for modification or

termination of the guardianship with respect to the appointment of

a visitor as apply to a petition for appointment of a guardian, as

provided in section 5310.

(y) To personal notice of a petition for appointment or

removal of a guardian, as provided in section 5311.

(z) To written notice of the nature, purpose, and legal

effects of the appointment of a guardian, as provided in section

5311.

(aa) To choose the person who will serve as guardian, if the

chosen person is suitable and willing to serve, as provided in

section 5313.

(bb) To consult with the guardian about major decisions

affecting the individual, if meaningful conversation is possible,

as provided in section 5314.

(cc) To quarterly visits by the guardian, as provided in

section 5314.

(dd) To have the guardian notify the court within 14 days of a

change in the individual's residence, as provided in section 5314.

(ee) To have the guardian secure services to restore the

individual to the best possible state of mental and physical well-

being so that the individual can return to self-management at the

earliest possible time, as provided in section 5314.

(ff) To have the guardian take reasonable care of the

individual's clothing, furniture, vehicles, and other personal

effects, as provided in section 5314.

(gg) To partially self-manage his or her property to encourage

self-reliance and independence, as provided in section 5316.

(2) A guardian ad litem shall inform the ward in writing of

his or her rights enumerated in this section. The state court

administrative office and the office of services to the aging

created in section 5 of the older Michiganians act, 1981 PA 180,

MCL 400.585, shall promulgate a form to be used to give the written

notice under this section, which shall include space for the court

to include information on how to contact the court or other

relevant personnel with respect to the rights enumerated in this

section.

Sec. 5314. Whenever meaningful communication is possible, a

legally incapacitated individual's guardian shall consult with the

legally incapacitated individual before making a major decision

affecting the legally incapacitated individual. ~~Except as limited~~

To the extent a guardian of a legally incapacitated individual is

granted powers by the court under section 5306, ~~a legally~~

~~incapacitated individual's~~ the guardian is responsible for the

ward's care, custody, and control, but is not liable to third

persons by reason of that responsibility for the ward's acts. In

particular and without qualifying the previous sentences, a

guardian has all of the following powers and duties, ~~except as~~

~~modified~~ to the extent granted by court order:

(a) ~~To the extent that it is consistent with the terms of an~~

~~order by a court of competent jurisdiction relating to the ward's~~

~~detention or commitment, the guardian is entitled to~~ The custody of

the person of the ~~guardian's~~ ward and ~~may~~ the power to establish

the ward's place of residence within or without this state. A

~~ward's~~ The guardian shall visit the ward within 3 months after the

guardian's appointment and not less than once within 3 months after

each previous visit. The guardian ~~must~~ shall notify the court

within 14 days of a change in the ward's place of residence.

(b) If entitled to custody of the ward, the ~~guardian must~~ duty

to make provision for the ward's care, comfort, and maintenance

and, when appropriate, arrange for the ward's training and

education. The guardian shall secure services to restore the ward

to the best possible state of mental and physical well-being so

that the ward can return to self-management at the earliest

possible time. Without regard to custodial rights of the ward's

person, the guardian ~~must~~ shall take reasonable care of the ward's

clothing, furniture, vehicles, and other personal effects and

commence a protective proceeding if the ward's other property needs

protection. If a guardian commences a protective proceeding because

the guardian believes that it is in the ward's best interest to

sell or otherwise dispose of the ward's real property or interest

in real property, the court may appoint the guardian as special

conservator and authorize the special conservator to proceed under

section 5423(3). A guardian shall not otherwise sell the ward's

real property or interest in real property.

that is necessary to enable the ward to receive medical or other

professional care, counsel, treatment, or service.

(d) If a conservator for the ward's estate is not appointed, a

~~guardian may~~ the power to do any of the following:

(i) Institute a proceeding to compel a person under a duty to

support the ward or to pay money for the ward's welfare to perform

that duty.

(ii) Receive money and tangible property deliverable to the

ward and apply the money and property for the ward's support, care,

and education. The guardian shall not use money from the ward's

estate for room and board that the guardian or the guardian's

spouse, parent, or child have furnished the ward unless a charge

for the service is approved by court order made upon notice to at

least 1 of the ward's next of kin, if notice is possible. The

guardian shall exercise care to conserve any excess for the ward's

needs.

(e) The ~~guardian shall~~ duty to report the condition of the

ward and the ward's estate that is subject to the guardian's

possession or control, as required by the court, but not less often

than annually. The guardian shall also serve the report required

under this subdivision on the ward and interested persons as

specified in the Michigan court rules. A report under this

subdivision ~~must~~ shall contain all of the following:

(i) The ward's current mental, physical, and social condition.

(ii) Improvement or deterioration in the ward's mental,

physical, and social condition that occurred during the past year.

(iii) The ward's present living arrangement and changes in his

or her living arrangement that occurred during the past year.

(iv) Whether the guardian recommends a more suitable living

arrangement for the ward.

(v) Medical treatment received by the ward.

(vi) Services received by the ward.

(vii) A list of the guardian's visits with, and activities on

behalf of, the ward.

(viii) A recommendation as to the need for continued

guardianship.

(f) If a conservator is appointed, the ~~guardian shall~~ duty to

pay to the conservator, for management as provided in this act, the

amount of the ward's estate received by the guardian in excess of

the amount the guardian expends for the ward's current support,

care, and education. The guardian shall account to the conservator

for the amount expended.

Sec. 5315. (1) A To the extent granted by the court under

section 5306, the guardian of an individual for whom a conservator

also is appointed controls the ward's custody and care and is

entitled to receive reasonable amounts for those services and for

room and board furnished to the ward as agreed upon between the

guardian and the conservator if the amounts agreed upon are

reasonable under the circumstances. The guardian may request the

conservator to expend the ward's estate by payment to a third

person or institution for the ward's care and maintenance.

(2) If a ward dies while under guardianship and a conservator

has not been appointed for the ward's estate and if the guardian

has possession of money of the deceased ward, upon petition of the

guardian and with or without notice, the court may hear a claim for

burial expenses or any other claim as the court considers

advisable. Upon hearing the claim, the court may enter an order

allowing or disallowing the claim or a part of the claim and may

provide in the order of allowance that the claim or a part of it be

paid immediately if the payment can be made without injury or

serious inconvenience to the ward's estate.

Sec. 5316. ~~To encourage self-reliance and independence in~~

Except to the extent the court grants the guardian or conservator

of a legally incapacitated individual the power to control the

individual's money or property, ~~the court may authorize~~ the

individual ~~to function~~ may handle his or her money or property

without the consent or supervision of the individual's guardian or

conservator, ~~in handling part of his or her money or property,~~

including ~~authorizing the individual to maintain~~ maintaining an

account with a financial institution. To the extent the individual

~~is authorized~~ has the power to function autonomously, a person may

deal with the individual as though the individual is mentally

competent.

Sec. 5410. (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.

financial hardship on the estate.

(d) The court states on the record the reasons why a bond is

not necessary.

(2) A bond furnished under this section shall be conditioned

upon faithful discharge of all duties of the conservator's trust

according to law, with sureties as the court specifies. Unless

otherwise directed, the bond shall be in the amount of the

aggregate capital value of the estate property in the conservator's

control plus 1 year's estimated income minus the value of

securities deposited under arrangements requiring a court order for

their removal and the value of land that the fiduciary, by express

limitation of power, lacks power to sell or convey without court

authorization. Instead of sureties on a bond, the court may accept

other security for the performance of the bond, including a pledge

of securities or a mortgage of land.

Sec. 5422. (1) A person who in good faith either assists or

deals with a conservator for value in a transaction, other than

~~those requiring~~ a transaction that requires a court order as

provided in section 5407 or 5423(3), is protected as if the

conservator properly exercised the power. ~~The~~ Except as provided in

subsection (3), the fact that a person knowingly deals with a

conservator does not alone require the person to inquire into the

existence of a power or the propriety of its exercise, but a

restriction on a conservator's powers that is endorsed on letters

as provided in section 5427 is effective as to third persons. A

person is not bound to see to the proper application of estate

property paid or delivered to a conservator.

(2) The protection expressed in this section extends to a

procedural irregularity or jurisdictional defect that occurs in a

proceeding leading to the issuance of letters and is not a

substitution for protection provided by a comparable provision of

the law relating to a commercial transaction or to simplifying a

transfer of securities by a fiduciary.

(3) A conservator shall record an order allowing the sale,

disposal, mortgage, or pledge of or placement of a lien on real

property under section 5423 in the records of the register of deeds

for the county in which the real estate is located. Unless the

order has been recorded or a person to whom an interest in the real

estate is transferred has been given a copy of the order, the

person is not entitled to presume that the conservator has the

power to sell or otherwise dispose of the real property, or to

mortgage, pledge, or cause a lien to be placed on the protected

individual's real property, as applicable.

Sec. 5423. (1) Subject to a limitation imposed under section

5427, a conservator has all of the powers conferred in this section

and the additional powers conferred by law on trustees in this

state. In addition, a conservator of the estate of an unmarried

minor, as to whom no one has parental rights, has the powers,

responsibilities, and duties of a guardian described in section

5215 until the individual is no longer a minor or marries. The

parental rights conferred on a conservator by this section do not

preclude a guardian's appointment as provided in part 2.

(2) Acting reasonably in an effort to accomplish the purpose

of the appointment and without court authorization or confirmation,

a conservator may do any of the following:

(a) Collect, hold, or retain estate property, including land

in another state, until the conservator determines that disposition

of the property should be made. Property may be retained even

though it includes property in which the conservator is personally

interested.

(b) Receive an addition to the estate.

other enterprise.

(d) Acquire an undivided interest in estate property in which

the conservator, in a fiduciary capacity, holds an undivided

interest.

(e) Invest or reinvest estate property. If the conservator

exercises the power conferred by this subdivision, the conservator

must invest or reinvest the property in accordance with the

Michigan prudent investor rule.

(f) Deposit estate money in a state or federally insured

financial institution including one operated by the conservator.

(g) Except as provided in subsection (3), acquire or dispose

of estate property, including land in another state, for cash or on

credit, at public or private sale, or manage, develop, improve,

exchange, partition, change the character of, or abandon estate

property.

(h) Make an ordinary or extraordinary repair or alteration in

a building or other structure, demolish an improvement, or raze an

existing or erect a new party wall or building.

(i) Subdivide, develop, or dedicate land to public use; make

or obtain the vacation of a plat or adjust a boundary; adjust a

difference in valuation on exchange or partition by giving or

receiving consideration; or dedicate an easement to public use

without consideration.

(j) Enter for any purpose into a lease as lessor or lessee

with or without option to purchase or renew for a term within or

extending beyond the term of the conservatorship.

(k) Enter into a lease or arrangement for exploration and

removal of a mineral or other natural resource or enter into a

pooling or unitization agreement.

(l) Grant an option involving disposition of estate property or

take an option for the acquisition of property.

(m) Vote a security, in person or by general or limited proxy.

(n) Pay a call, assessment, or other amount chargeable or

accruing against or on account of a security.

(o) Sell or exercise stock subscription or conversion rights.

(p) Consent, directly or through a committee or other agent,

to the reorganization, consolidation, merger, dissolution, or

liquidation of a corporation or other business enterprise.

(q) Hold a security in the name of a nominee or in other form

without disclosure of the conservatorship so that title to the

security may pass by delivery. However, the conservator is liable

for an act of the nominee in connection with the stock so held.

(r) Insure the estate property against damage or loss or the

conservator against liability with respect to third persons.

(s) Borrow money to be repaid from estate property or

otherwise.

(t) Advance money for the protection of the estate or the

protected individual, and for all expense, loss, or liability

sustained in the estate's administration or because of the holding

or ownership of estate property. The conservator has a lien on the

estate as against the protected individual for such an advance.

(u) Pay or contest a claim; settle a claim by or against the

estate or the protected individual by compromise, arbitration, or

otherwise; and release, in whole or in part, a claim belonging to

the estate to the extent that the claim is uncollectible.

(v) Pay a tax, assessment, conservator's compensation, or

other expense incurred in the estate's collection, care,

administration, and protection.

(w) Allocate an item of income or expense to either estate

income or principal, as provided by law, including creation of a

reserve out of income for depreciation, obsolescence, or

amortization, or for depletion in a mineral or timber property.

(x) Pay money distributable to a protected individual or the

protected individual's dependent by paying the money to the

distributee or by paying the money for the use of the distributee

to the distributee's guardian, or if none, to a relative or other

person having custody of the distributee.

(y) Employ a person, including an auditor, investment advisor,

or agent, even though the person is associated with the

conservator, to advise or assist in the performance of an

administrative duty; act upon the person's recommendation without

independent investigation; and, instead of acting personally,

employ an agent to perform an act of administration, whether or not

discretionary.

(z) Employ an attorney to perform necessary legal services or

to advise or assist the conservator in the performance of the

conservator's administrative duties, even if the attorney is

associated with the conservator, and act without independent

investigation upon the attorney's recommendation. An attorney

employed under this subdivision shall receive reasonable

compensation for his or her employment.

(aa) Prosecute or defend an action, claim, or proceeding in

any jurisdiction for the protection of estate property and of the

conservator in the performance of a fiduciary duty.

(bb) Execute and deliver an instrument that will accomplish or

facilitate the exercise of a power vested in the conservator.

(cc) Respond to an environmental concern or hazard affecting

property as provided in section 5424.

(3) A conservator shall not sell or otherwise dispose of the

protected individual's principal dwelling, real property, or

interest in real property or mortgage, pledge, or cause a lien to

be placed on any such property without approval of the court. The

court shall only approve the sale, ~~or other~~ disposal, mortgage, or

pledge of or lien against the principal dwelling, real property, or

interest in real property if, after a hearing with notice to

interested persons as specified in the Michigan court rules, the

court considers evidence of the value of the ~~real~~ property or

~~interest in real property~~ and otherwise determines that the sale,

~~or other~~ disposal, mortgage, pledge, or lien is in the protected

individual's best interest.

Enacting section 1. This amendatory act takes effect April 1,

2012.