Can an ancillary estate in Michigan be administered separate from the primary estate?  Can claims be paid and distributions made directly to heirs? (ref. sections 4203, 4204, 3402, 3303 and 3914) 0104

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Question

I am probating an ancillary estate in Livingston County regarding an undivided 1/5 interest in certain real estate located in that county.  The primary estate is in Ohio.  The widow and children of the deceased are all located in Ohio and they don't claim any interest in the Livingston County real estate because the Will of the deceased specifically bequests his 1/5 interest to his four surviving brothers who are the owners of the remaining 4/5 interest in the real estate.

We have appointed one of the brothers who lives in Michigan, as the Personal Representative for the ancillary estate.  This was done with the consent of the widow, who is the Personal Representative in the primary estate.   We want the Personal Representative for the ancillary estate to distribute the proceeds of any sales and the remaining real estate, from the ancillary estate directly to the surviving brothers, in order to satisfy the specific bequest contained in the Will.  The primary Personal Representative is in agreement with this, as she does not feel that she or her children have any interest in this real estate.

My question is whether under EPIC, we can administer the ancillary estate in Michigan separate from the primary estate in Ohio.  Can the local Personal Representative pay real estate related expenses and make distributions out of the ancillary estate directly to creditors and to the brothers?

Answer

Under the Revised Probate Code (RPC), if after 30 days after the death of the decedent there is no petition for or local administration pending, the foreign (i.e., domiciliary) personal representative could file with the probate court where the decedent's property is located, an authenticated copy of his or her appointment.  Then the probate court could appoint that person as the local (i.e., ancillary) personal representative.  Former MCLA 700.235 and .236.  Usually the authenticated copy of the appointment would be accompanied by a petition for commencement of proceedings asking for the appointment of an personal representative and for admission of the will to probate.

The Estates and Protected Individuals Code (EPIC) is much clearer about the process for ancillary administration.  There are two routes.

Under one route, the foreign (i.e., domiciliary) personal representative files an authenticated copy of his or her appointment with the probate court in the county where the nonresident decedent left property.  If no local administration or a petition for local administration is pending, the foreign personal representative then has all the powers of a local representative and may proceed to administer the estate in Michigan.   MCLA 700.4203 and .4204.  There is no 30 day waiting period as there was under RPC.  Under this alternative, there is no appointment by the Michigan court and no letters of authority are issued by the Michigan court.

Under MCLA 700.4203(2), the domiciliary personal representative who complies with that section has all the powers of a local personal representative to administer the estate in Michigan including the power to make distributions to the beneficiaries or heirs.

Under the other route, a petition for a formal proceeding or an application for an informal proceeding is filed to admit the will in Michigan and have a personal representative appointed.  An authenticated copy of the will must accompany the petition. MCLA 700.3402(1)(c).  An authenticated copy of the will and the statement (order) probating it must accompany the application.   MCLA 700.3303(4).  However, informal appointment of a personal representative must be delayed 28 days after the death unless the applicant is the domiciliary personal representative.  In this procedure, there will be an order or a Register's Statement and ancillary letters of authority will be issued.  Article III of EPIC (Probate of Wills and Administration) governs this process and the status, powers, duties and liabilities of the ancillary personal representative.  MCLA 700.4205.

Under Article III, the ancillary personal representative has the authority to administer the estate in Michigan.  However,  MCLA 700.3919 contains specific requirements with respect to the distribution of the Michigan assets.  In general, the assets should be distributed to the domiciliary personal representative.  However, MCLA 700.3919 contains exceptions which permit distribution otherwise.  Note that the reference to "section 3951" in MCLA 700.3919(1)(c) is incorrect.  That reference should be to section 3952 or section 3953.  This was not corrected by the technical corrections act, 54 PA 2000.

Under either route, the personal representative may pay Michigan administration expenses and Michigan claims.

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Last Updated:  6-8-00

Send your comments, questions and suggestions to Phil Harter at 161 E Michigan Avenue, Battle Creek, Michigan 49014
or e mail to pharter@calhouncountymi.gov