New safeguards aim to stop financial exploitation and protect life savings

State Rep. Kathy Schmaltz today led the House in voting to better protect vulnerable individuals from financial exploitation by strengthening oversight for guardianships and conservatorships.

Schmaltz, R-Jackson, 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.

“Protecting vulnerable Michiganders is a priority we all share,” Schmaltz said. “No one should have to worry that their life savings could be misused when they are at their most vulnerable. This plan strengthens accountability and helps ensure people are treated with the dignity and respect they deserve.”

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 the changes are designed to close gaps in current law that can leave substantial assets without adequate monitoring, creating opportunities for exploitation.

“We’ve seen how devastating financial abuse can be for individuals and families,” Schmaltz said. “These reforms are about putting commonsense protections in place so that warning signs are caught earlier and stronger safeguards are triggered before serious harm occurs.”

During earlier committee testimony, supporters highlighted a case in which a vulnerable Michigan resident lost more than $400,000 through questionable financial activity while under another person’s care.

“This is about improving transparency, reinforcing oversight, and building trust in a system that people depend on,” Schmaltz said. “With these updates, we’re taking important steps to better protect individuals who cannot always advocate for themselves.”

The bills received unanimous bipartisan support in the House and will now move to the Senate for further consideration.