Schmaltz: ‘Your financial assets shouldn’t be at risk’

State Rep. Kathy Schmaltz is spearheading a plan to better protect vulnerable individuals from financial exploitation by strengthening oversight for guardianships and conservatorships.

Schmaltz said her goal is to give Michigan residents more peace of mind in knowing that they will be protected, even when someone else has been entrusted with managing their care or finances.

“We have a responsibility to make sure the system protects people who may not be able to protect themselves,” said Schmaltz, R-Jackson. “I’m working to create stronger safeguards, improve transparency, and help ensure vulnerable individuals are not taken advantage of financially.”

House Bills 5739-5740 strengthen probate court oversight and financial protections when individuals under guardianship or conservatorship have significant financial assets. The bills establish additional safeguards when liquid assets reach $25,000 or more, including notification requirements to the probate court, appointment of a conservator, and enhanced financial accountability measures.

Schmaltz said gaps in current law can leave substantial assets without adequate oversight and create opportunities for financial abuse.

In recent testimony before a House committee, supporters of Schmaltz’s plan pointed to a troubling case of financial exploitation in which a vulnerable Michigan resident lost more than $400,000 through questionable financial transactions while under another person’s care.

“Once financial exploitation occurs, the damage can be devastating and often irreversible,” Schmaltz said. “Putting stronger protections in place will help prevent it before it’s too late. These are practical improvements that promote dignity, accountability, and trust in the system.”

The plan recently received unanimous bipartisan support in the House Families and Veterans Committee, advancing the legislation to the full House for further consideration.