700.5407 Permissible court orders.

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Sec. 5407.

(1)The court shall exercise the authority conferred in this part to encourage the development of maximum self-reliance and independence of a protected individual and shall make protective orders only to the extent necessitated by the protected individual's mental and adaptive limitations and other conditions warranting the procedure. Accordingly, the court may authorize a protected individual to function without the consent or supervision of the individual's conservator in handling part of his or her money or property, including authorizing the individual to maintain an account with a financial institution. To the extent the individual is authorized to function autonomously, a person may deal with the individual as though the individual is mentally competent.

(2)The court has the following powers that may be exercised directly or through a conservator in respect to a protected individual's estate and business affairs:

(a)While a petition for a conservator's appointment or another protective order is pending and after preliminary hearing and without notice to others, the court has the power to preserve and apply property of the individual to be protected as may be required for the support of the individual or the individual's dependents.

(b)After hearing and upon determining that a basis for an appointment or other protective order exists with respect to a minor without other disability, the court has all those powers over the minor's estate and business affairs that are or may be necessary for the best interests of the minor and members of the minor's immediate family.

(c)After hearing and upon determining that a basis for an appointment or other protective order exists with respect to an individual for a reason other than minority, the court, for the benefit of the individual and members of the individual's immediate family, has all the powers over the estate and business affairs that the individual could exercise if present and not under disability, except the power to make a will. Those powers include, but are not limited to, all of the following:

(i)To make gifts.

(ii)To convey or release a contingent or expectant interest in property including marital property rights and a right of survivorship incident to joint tenancy or tenancy by the entirety.

(iii)To exercise or release a power held by the protected individual as personal representative, custodian for a minor, conservator, or donee of a power of appointment.

(iv)To enter into a contract.

(v)To create a revocable or irrevocable trust of estate property that may extend beyond the disability or life of the protected individual.

(vi)To exercise an option of the protected individual to purchase securities or other property.

(vii)To exercise a right to elect an option and change a beneficiary under an insurance or annuity policy and to surrender the policy for its cash value.

(viii)To exercise a right to an elective share in the estate of the individual's deceased spouse.

(ix)To renounce or disclaim an interest by testate or intestate succession or by inter vivos transfer.

(3)The court may exercise or direct the exercise of the following powers only if satisfied, after the notice and hearing, that it is in the protected individual's best interests and that the individual either is incapable of consenting or has consented to the proposed exercise of the power:

(a)To exercise or release a power of appointment of which the protected individual is donee.

(b)To renounce or disclaim an interest.

(c)To make a gift in trust or otherwise exceeding 20% of a year's income of the estate.

(d)To change a beneficiary under an insurance and annuity policy.

(4)A determination that a basis for a conservator's appointment or another protective order exists has no effect on the protected individual's capacity.

History: 1998, Act 386 , Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46 , Eff. Apr. 1, 2010

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