Michigan Conservator Bond

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Michigan Conservator Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Michigan Conservator bond.

At a Glance:

  • Average Cost: Calculated based on a tiered structure
  • Bond Amount: Determined on a case-by-case basis (more on this later)
  • Who Needs It: Most conservators appointed as fiduciaries in Michigan
  • Purpose: To ensure the protected individual receives compensation for financial harm if the conservator mismanages their estate
  • Who Regulates Conservator Bonds in Michigan: The probate court of the county where the protected individual resides or has property
Michigan Conservator Bond Form
Michigan Conservator Bond Form


Michigan Compiled Law 700.5401 requires all conservators to be appointed by a court before assuming their fiduciary duties. The Michigan legislature enacted the appointment requirement to ensure conservators act in the protected individual’s best interests when managing their estate. To provide financial security for the enforcement of this requirement, most conservators must purchase and maintain a probate surety bond before becoming appointed as a fiduciary.

What is the Purpose of the Michigan Conservator Bond?

Michigan requires most conservators to purchase a surety bond as a prerequisite to being appointed as a fiduciary over an estate. The bond ensures that the protected individual will receive compensation for financial harm if the conservator fails to abide by the regulations outlined in Michigan Compiled Law 700.5410. Specifically, the bond protects the individual if the conservator fails to adhere to all court orders or mismanages the estate’s assets.

For example, if a conservator uses money from the minor’s bank account to pay for unauthorized expenses or mixes the estate’s funds with their own, the minor can file a claim against the conservator’s bond to recoup their losses. In short, the bond is a type of insurance that protects the individual if the conservator does not fulfill their fiduciary duties.

How Can an Insurance Agent Obtain a Michigan Conservator Bond?

BondExchange makes obtaining a Michigan Conservator bond easy. Simply log-in to your account and use our keyword search to find the “Conservator” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

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How is the Bond Amount Determined?

Michigan Compiled Law 700.5410 dictates that the bond amount must equal the aggregate value of the estate’s property under the conservator’s control plus the estimated income to be generated by the estate over the next year.

The bond amount may be reduced by the value of any assets deposited that cannot be withdrawn without a court order or any land that the conservator can not sell without authorization from the court. Conservators that do not wish to purchase a bond may request to submit another form of collateral instead, such as a pledge of securities or a mortgage of land.

Can the Bond Amount be Adjusted?

Yes, as Michigan Compiled Law 700.5415 allows for any person interested in the welfare of the protected individual may petition the court to adjust the required bond amount or require an additional bond if they deem one necessary. The court will have the final say in making any changes to the required bond amount.

What are the Underwriting Requirements for the Michigan Conservator Bond?

Most surety companies will examine the following factors when determining eligibility for the Michigan Conservator bond:

  • Conservator’s credit history
  • Whether or not the estate has an attorney
  • Whether or not the conservator is a family member
  • The conservator’s occupation
  • Whether or not the conservator is replacing a prior fiduciary
  • If the conservator has ever committed a felony
  • Whether or not there is any ongoing business in the estate
  • If a creditor is requiring the bond
  • If the bond amount is greater than or equal to the estate’s value

How Much Does the Michigan Conservator Bond Cost?

Surety companies typically determine the premium rate for Conservator bonds based on a tiered structure, so larger bond amounts will be charged a lower premium rate than smaller bonds.

The following table illustrates the pricing structure for the Michigan Conservator bond:

$1,500,000 Conservator Bond Cost

Bond Amount Premium Rate Total Bond Cost
First $20,000 0.75% $150
Next $40,000 0.60% $240
Next $140,000 0.50% $700
Next $300,000 0.375% $1,125
Next $1,000,000 0.25% $2,500
Total cost of $4,715

Who is Required to Purchase the Bond?

Michigan requires most conservators to purchase a surety bond as a prerequisite to becoming a court-appointed fiduciary. To paraphrase Michigan Compiled Law 700.1101 et seq, a “conservator” is an individual or organization appointed as a fiduciary to manage and make decisions for a protected individual’s assets and property. Likewise, a “protected individual” is a minor or incapacitated person for whom a conservator has been appointed. Additionally, a “minor” is a person under the age of 18, and an “incapacitated person” is an adult who has been judged by a court to be unable to manage their property or take care of themselves.

Conservators are not required to purchase a surety bond, unless explicitly required by the court, in the following situations:

  • The court determines a bond is not necessary
  • The conservator is a trust company or a bank with trust powers
  • The estate contains no property readily convertible to cash and the cash is in a restricted account with a financial institution
  • The court determines that requiring a bond would impose financial hardship on the estate
  • The value of the estate under the conservator’s control is less than $15,000

Michigan Conservator Bond

How do Michigan Conservators Become Appointed as Fiduciaries?

Conservators in Michigan must navigate several steps to become appointed as fiduciaries. Below are the general guidelines, but appointees should refer to the appointment statutes or the Michigan Court’s website for details on the process.

Step 1 – Hire an Attorney

Although not explicitly required, it is highly recommended that conservators hire an attorney to assist with the conservatorship process.

Step 2 – Determine Priority

Priority to serve as a conservator is granted in the following order:

    • Persons already appointed as a fiduciary over the individual in this state or another
    • A person or corporation nominated by the individual if they have the sufficient mental capacity
    • The spouse of the individual or their nominee
    • The adult child of the individual or their nominee
    • A parent of the individual or a nominee by the parent’s will
    • A relative of the individual who has resided with the individual for at least 6 months before the petition is filed
    • A person or corporation nominated by an entity caring for or paying benefits to the individual
    • Any other person considered appropriate by the court

The court will appoint the conservator best suited for the individual and may choose to appoint a person with lower priority or without priority.

Step 3 – File a Petition for Appointment

Persons seeking conservatorship over a minor or incapacitated adult must file a petition for appointment with the probate court in the county where the minor/adult resides or owns property. Petitioners can obtain the necessary forms online here or from the court, and must ensure they include the following information:

    • Personal information of the proposed protected individual
    • Personal information about the person seeking the appointment
    • General statement and evaluation of the individual’s condition and estate
    • The reasoning for why a conservatorship is necessary
    • Any additional information requested by the court

Any person interested in the individual’s estate, affairs, or welfare may petition the court to begin protective proceedings over a minor or incapacitated adult.

Step 4 – Notify the Appropriate Parties

After submitting the required items to the court, petitioners must have another adult, known as a server, notify all of the interested parties involved in the case. The notice must include a notice of the hearing and a copy of the petition and must be given to all of the following parties:

    • The individual for whom a conservator is being appointed
    • Any presumptive heirs of the individual
    • The individual’s agent under a durable power of attorney
    • A government agency paying benefits to the individual
    • Any other party the court determines is necessary

Petitioners can typically request the county sheriff to complete this step for them.

Step 5 – Attend a Hearing

Conservators must attend a hearing conducted by the court and present evidence as to why the minor or incapacitated adult is in need of conservatorship. The court will examine the evidence presented by the conservator as well as that presented by the individual being evaluated (if any) and make a determination as to whether or not conservatorship is necessary.

Any interested person can apply to the court to participate in the hearing. If the court finds a basis for the appointment, it will issue a letter of conservatorship to the petitioner.

Step 6 – Purchase a Surety Bond

Unless otherwise exempt, conservators must purchase and maintain a surety bond (limits outlined above).

How do Michigan Conservators File Their Bonds?

Conservators should file their completed bond forms, including the power of attorney, to the clerk of the probate court of the county where the protected individual resides or owns property.

The surety bond requires signatures from the surety company that issues the bond, the applicant, and a notary public. The surety company should include the following information on the bond form:

  • Legal name, address, and telephone number of the entity/individual(s) buying the bond
  • Legal name, address, and telephone number of the protected individual’s attorney
  • Surety company’s legal name, address, and telephone number
  • Type of fiduciary relationship
  • Date the bond is signed
  • Bond amount

What can Michigan Conservators do to Avoid Claims Made Against Their Bonds?

To avoid claims against their bonds, conservators in Michigan must ensure that they:

  • Perform all of their fiduciary duties
  • Obey all court orders
  • Do not mismanage the estate’s property
  • Obtain court approval before using any of the estate’s funds

Michigan Conservator Bond