In probate proceedings a Michigan personal representative bond is required only under specific circumstances. The surety bond requirement is first addressed in Section 700.3603, which states that a bond is generally not required of a personal representative appointed in informal proceedings, except in any of the following circumstances: (a) A special personal representative is appointed. (b) The personal representative is appointed to administer an estate under a will containing an express requirement of bond. (c) Bond is required under section 3605. The court may however ORDER a Michigan personal representative bond at the time of the personal representative’s appointment. The court shall not order bond of the personal representative in the formal proceeding if the will relieves the personal representative of bond, unless an “interested person” requests bond and the court is satisfied that bond is desirable. If a will in a formal proceeding requires bond, bond may be dispensed with if the court determines it is unnecessary. A person apparently having an interest in an estate worth in excess of $2,500.00 or a creditor having a claim against the estate in excess of $2,500.00 may make a written demand for a Michigan fiduciary bond. The demand must be filed with the register, and if appointment and qualification have occurred, a copy must be mailed to the personal representative. Upon filing of the demand, bond is required but the obligation ends if the person demanding bond ceases to be interested in the estate or if bond is excused as provided in section 3603 or 3604. After receipt of notice and until the filing of the Michigan bond of a personal representative or cessation of the requirement of bond, the personal representative shall refrain from exercising any powers of the fiduciary office except as necessary to preserve the estate.
Failure of the personal representative to meet a requirement of bond by giving suitable bond within 28 days after receipt of notice is cause for removal and appointment of a successor personal representative. The position and the Michigan probate bond imposes significant responsibilities on the personal representative. The personal representative must have a THOROUGH understanding of those duties as the fiduciary bond guarantees his or her performance of all of them. The Michigan Bar Association provides an excellent guide for personal representatives. You may access that guide by clicking ‘here‘. The Michigan bond of a fiduciary required by the courts must name the state of Michigan as obligee for the benefit of the persons interested in the estate and shall be conditioned upon the faithful discharge by the fiduciary of all duties according to law. By executing a Michigan bond of a personal representative, the surety consents to the jurisdiction of the court that issues letters of administration to the personal representative in the proceeding pertaining to the personal representative’s fiduciary duties. The petitioner must notify a surety of a proceeding by personal service or by registered or certified mail to the surety’s address as listed with the court where the bond is filed and to the surety’s address as then known to the petitioner. On petition of a successor personal representative or interested person, a proceeding in court may be initiated against a surety for breach of the obligation of the Michigan personal representative bond if a fiduciary fails to perform . The court may then order a surety to perform acts that the fiduciary should have performed or to correct an act the fiduciary performed improperly. The personal representative’s bond is not released after a first recovery but may be claimed against multiple until the whole penalty is exhausted.
National fiduciary bond leader, Surety One, Inc. is one of the largest fiduciary bond writers in the United States. Our underwriting solutions provide you the Michigan fiduciary bond that you need. We can offer you probate bond terms regardless of credit and/or financial condition. Visit SuretyOne.com, call (800) 373-2804, or email Underwriting@SuretyOne.com for a Michigan personal representative bond application or for further information about fiduciary bonds.
