Conservator Annual Accounting Michigan: How to File SCAO Form PC 583

Becoming your parent's conservator in Michigan doesn't end at the probate hearing — it begins there. The court requires annual financial accountings that document every dollar of income received, every expense paid, and every asset held on behalf of the protected person. Missing a deadline or submitting an incomplete accounting can result in court sanctions, removal as conservator, or personal liability for any unaccounted funds.

The Post-Appointment Inventory (Your First Deadline)

Before annual accountings even begin, you have an immediate obligation. Within 56 days of your appointment, you must file SCAO Form PC 674 — Inventory of the Protected Estate. This is a complete listing of every asset your parent owns as of the date you were appointed: bank accounts (with balances), investment accounts, real property (with assessed values), vehicles, personal property of significant value, and any debts owed to your parent.

Getting the inventory right matters because it becomes the baseline against which every future accounting is measured. If you miss an account or undervalue a property, subsequent accountings won't reconcile — and the court will notice.

Annual Accounting Requirements

On each anniversary of your appointment, you must file SCAO Form PC 583 (Account of Fiduciary, Short Form) or PC 584 (the long form, for larger or more complex estates). Most family conservatorships use the short form.

The accounting covers the 12-month period since your last filing (or since appointment, for the first one). It must document:

Income received. Social Security payments, pension distributions, investment dividends, rental income, tax refunds — every source of funds that came into the protected person's accounts during the period.

Disbursements made. Every payment you authorized: nursing home or care facility bills, medical expenses, insurance premiums, property taxes, home maintenance, personal needs allowance for the ward, and your own conservator fees if authorized by the court.

Assets on hand. The current balance of every account, the current value of investments, and the status of real property.

Reconciliation. Starting balance (from last year's ending balance or the initial inventory) + income - disbursements = ending balance. If it doesn't add up, you need to find and explain the discrepancy before filing.

Filing the Accounting

File the accounting with the probate court along with:

• SCAO Form PC 585a — Petition to Allow Account (requests the court to formally approve your accounting)
• $20 filing fee — required with each annual accounting

You must also send notice to all interested persons (your parent, their spouse, adult children, and any other parties the court has designated) informing them that the accounting has been filed and that they have the right to object. This notice triggers a waiting period — typically 28 days — during which objections can be raised before the court approves the account.

Common Mistakes That Trigger Court Scrutiny

Commingling funds. Never mix the protected person's money with your own. Open a dedicated bank account titled "[Parent's Name], by [Your Name], Conservator" and run all income and expenses through it. Commingling is the fastest way to lose the court's trust and your appointment.

Undocumented withdrawals. Every withdrawal needs a paper trail showing what it paid for and why it was necessary for the protected person's care or maintenance. "Cash withdrawal — $500" with no receipt or explanation will be flagged.

Late filing. The accounting is due within 56 days after the end of each accounting period. Judges issue show-cause orders to conservators who miss this deadline, requiring them to appear in court and explain the delay. Repeated late filings lead to removal.

Unreasonable fees. If you're claiming conservator fees, they must be reasonable and disclosed in the accounting. Michigan courts scrutinize fees that exceed what the estate can sustainably support. Family conservators handling routine matters typically claim modest amounts — or nothing at all — while professional conservators charge hourly rates that the court must approve.

Missing interest or dividends. Even small amounts of bank interest or stock dividends must be accounted for. The court compares your reported income against third-party records (bank statements, 1099 forms) and will catch discrepancies.

Keeping Records Throughout the Year

The accounting is infinitely easier if you maintain records continuously rather than reconstructing a year's worth of transactions from memory and bank statements. Keep a running ledger — even a simple spreadsheet — that logs every transaction as it happens: date, amount, payee or source, category, and a brief note explaining the purpose.

Save every receipt, invoice, and Explanation of Benefits. If the court or an interested party questions a specific disbursement, you need documentation on hand, not a promise to look for it.

When the Accounting Gets Complex

Estates with investment portfolios, rental properties, or ongoing litigation require the long-form PC 584 accounting and may benefit from a professional bookkeeper or CPA familiar with fiduciary accounting standards. The cost of professional accounting preparation is a legitimate estate expense — it protects both the ward and you.

The Michigan Power of Attorney & Guardianship Kit includes a conservator's annual tracking worksheet designed to log transactions throughout the year, organized by the exact categories the PC 583 form requires. It also covers the 56-day inventory deadline, the notice requirements for account approval, and the specific receipts and documentation the court expects to see.

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