HB-4491, As Passed House, March 23, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 4491

     A bill to amend 1998 PA 386, entitled

"Estates and protected individuals code,"

by amending sections 2517 and 3912 (MCL 700.2517 and 700.3912),

section 2517 as amended by 2000 PA 177.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2517.  (1) In the estate of a decedent,  who died before

October 1, 1993, the following apply to the opening of a safe

deposit box:

     (a) A safe deposit box of which the decedent was an individual

or joint lessee may be opened following the decedent's death only

upon compliance with the Michigan estate tax act, 1899 PA 188, MCL

205.201 to 205.256.

     (b) A safe deposit box of the decedent who was an individual

or joint lessee and for whom a fiduciary was appointed may be

opened by that fiduciary in a like manner as provided by the

Michigan estate tax act, 1899 PA 188, MCL 205.201 to 205.256, as it

relates to deceased individuals.

     (2) In the estate of a decedent who dies after September 30,

1993, the following apply to the opening of a safe deposit box:

     (a) Whenever it appears to the court by petition of an

interested person that a safe and collateral deposit company, trust

company, corporation, bank, or other institution has leased to a

decedent, either as an individual or joint lessee, a safe deposit

box in the county in which the probate court has jurisdiction and

that the safe deposit box may contain a will of the decedent or a

deed to a burial plot in which the decedent is to be interred, the

court may issue an order directing the institution to permit the

person named in the order to examine the safe deposit box in the

presence of an officer or other authorized employee of the

institution. If a paper purporting to be a will of the decedent or

a deed to a burial plot is found in the box, the person named in

the order shall deliver the will or deed to the probate register or

his or her deputy. The probate register or his or her deputy shall

furnish a receipt to the person named in the order. An item

contained in the safe deposit box other than the will or deed shall

not be removed from the safe deposit box. At the time of the

opening of the safe deposit box, all individuals in attendance

shall execute a written statement certifying whether a will or deed

to a burial plot is found and that no other items are removed,

which statement shall be delivered within 7 days after execution to

the probate register or his or her deputy. Before the court enters

the order, there shall be paid to the probate register a fee of

$10.00, which shall be credited to the general fund of the county.

If the decedent's estate is administered in a probate court in the

state, the party making payment of the fee may file a claim in the

estate for that amount, which shall be charged as a cost of

administration.

     (b) The safe deposit box of an individual who is an individual

or joint lessee and for whom a fiduciary was appointed may be

opened by that fiduciary and its contents removed. If the safe

deposit box is jointly leased, then the fiduciary may examine the

safe deposit box only in the presence of an officer or other

authorized employee of the safe deposit and collateral company,

trust company, corporation, bank, or other institution. At the time

of the opening of the safe deposit box, all individuals in

attendance shall execute a written statement certifying as to what

is removed from the box by the fiduciary. The fiduciary shall serve

a copy of that statement on the other joint lessees within 7 days

after removing the items.

     (c) Notwithstanding another provision of this section, a

surviving joint lessee of a joint safe deposit box has full access

to the safe deposit box.

     Sec. 3912. (1) If property distributed in kind or a security

interest in that property is acquired for value by a purchaser from

or lender to a distributee who has received an instrument or deed

of distribution from the personal representative, or is so acquired

by a purchaser from or lender to a transferee from such a

distributee, the purchaser or lender takes title free of rights of

an interested person in the estate and incurs no personal liability

to the estate, or to an interested person, whether or not the

distribution was proper or supported by court order or the personal

representative's authority was terminated before execution of the

instrument or deed.

     (2) This section protects a purchaser from or lender to a

distributee who, as personal representative, has executed a deed of

distribution to himself or herself, as well as a purchaser from or

lender to another distributee or his or her transferee. To be

protected under this section, a purchaser or lender does not need

to inquire whether a personal representative acted properly making

the distribution in kind, even if the personal representative and

the distributee are the same person, or whether the authority of

the personal representative had terminated before the distribution.

     (3) A recorded instrument described in this section on which

an exemption listed in section 5 of 1966 PA  135  134, MCL 207.505,

or section 6 of the state real estate transfer tax act, 1993 PA

330, MCL 207.526, is not noted is prima facie evidence that the

transfer is made for value.  Notwithstanding this section, a

purchaser or lender takes title free of the lien for Michigan

estate tax only to the extent provided by section 43 of the

Michigan estate tax act, 1899 PA 188, MCL 205.243.

     Enacting section 1. This amendatory act takes effect January

1, 2007.

     Enacting section 2.  This amendatory act does not take effect

unless House Bill No. 4486 of the 93rd Legislature is enacted into

law.