S.B. 459 (S-1): FIRST ANALYSIS DISAPPEARED HEIR
Senate Bill 459 (Substitute S-1 as passed by the Senate) Sponsor: Senator Mat J. Dunaskiss
Committee: Judiciary Date Completed: 5-10-95
Under the Revised Probate Code, if a deceased person’s heir or devisee is a “disappeared person”, the portion of the estate that otherwise would be distributed to that heir or devisee cannot be distributed until three years after the decedent’s death. During that time, certain notice requirements must be fulfilled. If the heir or devisee does not make a claim within three years, his or her portion of the estate must be distributed by order of the court to each person who would be entitled to the portion if the disappeared person were deceased, and the heir or devisee and his or her heirs or devisees are forever barred from claiming that portion of the estate. This three-year provision, together with the Code’s reference to a “disappeared person”, reportedly has caused financial hardship and long delay in the distribution of the portion of an estate due a person who cannot be located. Since the Code defines “disappeared person” with respect to a seven-year period, final distribution of the assets of an estate can take much longer than the three- year waiting period. Some people believe that the waiting period for distributing a missing heir’s portion of an estate should be reduced and that the Code should refer to a “disappeared heir or devisee” in its provisions for the distribution of an estate and define that term to distinguish a missing heir from a “disappeared person”.
The bill would amend the Revised Probate Code to provide for the distribution of the portion of an estate otherwise due to a "disappeared heir or devisee", rather than the portion of an estate otherwise due to an heir or devisee who is a "disappeared person", and would shorten the period of time before distribution may be made.
The bill specifies that, if one or more of the apparent heirs or devisees of the estate of a deceased person had disappeared, the distribution of the portion of the estate that otherwise would be distributed to the disappeared heir or devisee could not be distributed to those who would be entitled to the portion if the disappeared heir or devisee had died before the decedent until at least 18 months after the decedent's death. Currently, under the Code, the portion of an estate that otherwise would be distributed to an heir or devisee who is a disappeared person may not be distributed until three years after the death of the decedent.
An heir or devisee would be considered to have disappeared under the bill if the heir or devisee met all of the following:
-- He or she had been absent from his or her last known place of abode for at least two continuous years.
-- His or her whereabouts were unknown by those people most likely to know of his or her whereabouts during at least the last two continuous years.
-- He or she had not communicated with any of the people most likely to receive communication from him or her during at least the last two continuous years.
Under the Code, a "disappeared person" is one who meets all of the following:
-- The person has been absent from his or her last known place of abode for at least seven continuous years.
-- The person's whereabouts were unknown by those people most likely to know of his or her whereabouts during at least the last seven continuous years.
-- The person had not communicated with any of the people most likely to receive communication from him or her during at least the last seven continuous years.
If, after the publication of notices required by the Code, a person did not make a claim on or before the expiration of 18 months, rather than three years, the disappeared heir's portion of the estate would have to be distributed by order of the court to each person who would be entitled to the portion if the disappeared heir or devisee predeceased the decedent, and the disappeared heir or devisee and his or her unknown heirs and devisees would be forever barred from all claim or right to that portion of the estate.
MCL 700.493
The bill would have no fiscal impact on State or local government.
Fiscal Analyst: L. Nacionales-Tafoya
(Please note: The arguments contained in this analysis originate from sources outside the Senate Fiscal Agency. The Senate Fiscal Agency neither supports nor opposes legislation.)
When an heir to an estate cannot be located, it makes sense that reasonable efforts should be made to find and notify the person of his or her inheritance. The law should provide for the distribution of a disappeared heir’s portion of an estate, however, within a reasonable amount of time after the decedent’s death. The current time frame for distribution of that portion of an estate is too lengthy. To wait three years after a person’s death and to have to show that an heir’s whereabouts were unknown for at least seven years is simply unreasonable. The Revised Probate Code provides for the administration of the estate of a disappeared person. For those purposes, it may be reasonable to define “disappeared person” with respect to a seven-year absence, but in the case of a missing heir, the long waiting period can place a great burden on the other heirs and on the estate itself. The bill’s provision for an 18-month period after the decedent’s death and its definition of a “disappeared heir or devisee” with respect to a two-year absence would provide for a sufficient amount of time to conduct a search for a missing heir without delaying an estate’s distribution for an unnecessarily long period of time.
Legislative Analyst: P. Affholter
A9596\S459A
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.