House Approves Legislation to Protect Rightful Heirs from Fraud Scheme

Friday, October 6, 2017

My second bill passed the House yesterday unanimously. House Bill 4822, which is part of a bipartisan package, would help protect heirs from a recent fraud scheme that was uncovered in southeast Michigan.

The legislation puts safeguards in place to protect the property interests of rightful heirs after it was recently discovered that some private real estate companies were working with public administrators to sell property held by an estate without attempting to notifying the rightful heirs and charging the estates excessive real estate and legal fees.

It is unconscionable that residents would be preyed upon when they are grieving the loss of a loved one.

Establishing these new consumer protections to put an end to this fraud scheme was a truly bipartisan effort that brought together state and Oakland County officials from both sides of the aisle.

The most important protections we put in place are:

  1. Requiring court approval for the sale of property held in an estate that is managed by a public administrator.
  2. Requiring public administrators to locate rightful heirs and inform them of their rights before attempting to be appointed to their estate.
  3. Establishing a 10 percent cap on attorney and real estate fees.

This legislation will now move to the Senate Judiciary Committee, where we hope to receive a hearing on the legislation very soon.

If you have any questions, suggestions or need help resolving an issue, please do not hesitate to contact my office. You can reach us at (517) 373-3818 or toll-free at (866) 585-2471.

I hope to hear from you about your thoughts and ideas as we work together to move Michigan forward.