October 19, 2005, Introduced by Senator SWITALSKI and referred to the Committee on Appropriations.
A bill to amend 1998 PA 386, entitled
"Estates and protected individuals code,"
by amending section 3805 (MCL 700.3805), as amended by 2000 PA 177.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3805. (1) If the applicable estate property is
insufficient to pay all claims and allowances in full, the personal
representative shall make payment in the following order of
priority:
(a) Costs and expenses of administration.
(b) Reasonable funeral and burial expenses.
(c) Homestead allowance.
(d) Family allowance.
(e) Exempt property.
(f) Debts and taxes with priority under federal law,
including, but not limited to, medical assistance payments that are
subject to adjustment or recovery from an estate under section 1917
of the social security act, 42 USC 1396p.
(g) Reasonable and necessary medical and hospital expenses of
the decedent's last illness, including a compensation of persons
attending the decedent.
(h) Debts and taxes with priority under other laws of this
state.
(i) All other claims.
(2) A preference shall not be given in the payment of a claim
over another claim of the same class, and a claim due and payable
is not entitled to a preference over a claim not due.
(3) If there are insufficient assets to pay all claims in full
or to satisfy homestead allowance, family allowance, and exempt
property, the personal representative shall certify the amount and
nature of the deficiency to the trustee of a trust described in
section 7501(1) for payment by the trustee in accordance with
section 7502. If the personal representative is aware of other
nonprobate transfers that may be liable for claims and allowances,
then, unless the will provides otherwise, the personal
representative shall proceed to collect the deficiency in a manner
reasonable under the circumstances so that each nonprobate
transfer, including those made under a trust described in section
7501(1), bears a proportionate share or equitable share of the
total burden.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 93rd Legislature are
enacted into law:
(a) Senate Bill No. 820.
(b) Senate Bill No. 821.