Protecting vulnerable loved ones is a top priority for Michigan families, and recent legislative changes have added safeguards to the state's guardianship and conservatorship processes. Stemming from initiatives led by the Elder Abuse Task Force, the Michigan legislature passed 2026 Public Acts 68 and 69 to better regulate how guardians and conservators handle a protected individual's housing and property. These updates to the Estates and Protected Individuals Code (EPIC) require mandatory appraisals before home sales and mandate strict court approvals for relocating an incapacitated person. In this article, we will break down these new requirements and explain how they may impact your loved ones’ care.
Please note that this post is not exhaustive, and every situation is unique. In the event that you have legal questions about working with a guardianship or conservatorship, it's advisable to speak with a licensed attorney. Contact Thompson Legal to speak with a Michigan probate attorney.
Background: The Elder Abuse Task Force
For years, elder law advocates have observed concerning trends regarding the management of elderly individuals' finances and living conditions. In 2019, the Elder Abuse Task Force was created to provide comprehensive policy recommendations aimed at preventing elder abuse across Michigan. A primary area of concern was the unchecked authority of professional guardians and conservators.
According to testimony provided to the task force, many professional guardians were not thoroughly evaluating the unique needs of an elderly individual before taking drastic actions, such as selling their permanent home and moving them into a residential care facility or group home. Frequently, these moves were not in the elderly ward’s best interest. To help protect these vulnerable individuals, Michigan enacted 2026 PA 68 and 2026 PA 69, amending the Estates and Protected Individuals Code (EPIC), MCL 700.1101-700.8206, to hold court-appointed fiduciaries to a higher standard of transparency and accountability.
2026 PA 68: New Appraisal Requirements for Conservators
One of the most significant changes comes from 2026 PA 68, which amended MCL 700.5423 regarding a conservator’s ability to sell or dispose of a protected individual’s real estate. Previously, the threshold for selling a ward's principal dwelling was less stringent. Under the new law, a court can only approve the sale, disposal, mortgage, or pledge of a lien against the individual's dwelling or real property after a formal hearing where all interested persons have been properly notified.
Furthermore, the court must now carefully evaluate the property's true market value. This evidence must include a formal appraisal conducted within the preceding six months by a licensed professional. If the court decides to approve a property sale for less than this appraised value, the judge is legally required to explain on the record exactly why a below-market sale is in the protected individual’s best interest.
2026 PA 69: Protecting the Right to Remain at Home
While PA 68 addresses property, 2026 PA 69 addresses the personal living conditions of the ward. By introducing MCL 700.5306b and amending MCL 700.5306(2), the state has formally codified a legally incapacitated individual's right to remain in their own surroundings, or in the least restrictive environment suitable to meet their specific needs, abilities, and resources. A guardian is not granted blanket authority to change an incapacitated individual’s residence. To relocate a ward, a guardian must now file a specific petition providing the court with the reasoning, social impact, alternative efforts, as well as provide an environmental assessment confirming the new residence is the least restrictive environment. Upon filing, the probate court must appoint a guardian ad litem and hold a hearing within 28 days to ensure the ward's rights are thoroughly protected.
Updated and New SCAO Forms for Michigan Probate Courts
To facilitate these new EPIC statutes, the Michigan Supreme Court has revised and introduced several State Court Administrative Office (SCAO) forms. Fiduciaries and their legal counsel must ensure they are using the latest forms to avoid processing delays in probate court.
To ensure compliance with the requirements of MCL 700.5306b and MCL 700.5423, the Michigan Supreme Court updated several key State Court Administrative Office (SCAO) forms. Form PC 633 (Letters of Guardianship) now incorporates explicit language restricting a guardian’s authority, specifying that court permission must be obtained prior to relocating a ward from their permanent residence. Form PC 646 (Petition Regarding Real Estate/Dwelling) requires the inclusion of an appraisal conducted within the preceding six months, and Form PC 647 (Order Regarding Real Estate/Dwelling) now mandates a additional property information as well as a determination of whether the dwelling is the individual's principal residence, an explicit finding that the transaction is in their best interest, and a recorded justification if the sale price falls below the appraised value.
Alongside these revisions, the state introduced two new forms to standardize residence-change proceedings, Form PC 704 (Petition to Change Permanent Residence) and Form PC 705 (Order Regarding Change of Permanent Residence). Guardians and conservators must utilize these exact pleadings to ensure their filings are accepted by Michigan probate courts.
Petition to Change Permanent Residence, PC 704: A new petition designed specifically for guardians petitioning the court for a residence change under MCL 700.5306b.
Order Regarding Change of Permanent Residence, PC 705: A new order following a Petition to Change Permanent Residence.
Conclusion
These legislative updates to the Estates and Protected Individuals Code have been widely celebrated by elder law advocacy groups as a massive step forward in preventing elder abuse. By requiring appraisals and forcing guardians to justify residential transfers, vulnerable adults are given the dignity and financial protection they deserve. Navigating probate court as a guardian or conservator is more complex than ever, making experienced legal counsel essential. To speak with a dedicated probate and estate planning attorney, visit our Contact Us page or reach out to our Wyandotte office today.
This article is for informational purposes only. It is not intended as legal advice. In the event you would like to speak with a Probate and Estate Planning Attorney, please Contact Thompson Legal at (734) 743-1646 to schedule a consultation.
