1.1A bill for an act
1.2relating to civil law; modifying the statutory short form power of attorney;
1.3authorizing certain judicial relief; amending Minnesota Statutes 2012, sections
1.4523.20; 523.23, subdivision 1, by adding a subdivision; 523.24, subdivisions 8,
1.514; proposing coding for new law in Minnesota Statutes, chapter 523.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 523.20, is amended to read:
1.8
523.20 LIABILITY OF PARTIES REFUSING AUTHORITY OF
1.9
ATTORNEY-IN-FACT TO ACT ON PRINCIPAL'S BEHALF.
1.10Any party refusing to accept the authority of an attorney-in-fact to exercise a power
1.11granted by a power of attorney which (1) is executed in conformity with section
523.23
1.12or a form prepared under section
523.231; (2) contains a specimen signature of the
1.13attorney-in-fact authorized to act; (3)
new text begin for a power of attorney executed on or after January new text end
1.14
new text begin 1, 2014, contains an acknowledgement that the attorney-in-fact has read and understood new text end
1.15
new text begin the notice to the attorney-in-fact required under section 523.23; (4)new text end with regard to the
1.16execution or delivery of any recordable instrument relating to real property, is accompanied
1.17by affidavits that satisfy the provisions of section
523.17; (4)
new text begin (5)new text end with regard to any other
1.18transaction, is signed by the attorney-in-fact in a manner conforming to section
523.18;
1.19and (5)
new text begin (6)new text end when applicable, is accompanied by an affidavit and any other document
1.20required by section
523.16, is liable to the principal and to the principal's heirs, assigns,
1.21and representative of the estate of the principal in the same manner as the party would be
1.22liable had the party refused to accept the authority of the principal to act on the principal's
1.23own behalf unless: (1) the party has actual notice of the revocation of the power of attorney
1.24prior to the exercise of the power; (2) the duration of the power of attorney specified in the
2.1power of attorney itself has expired; or (3) the party has actual knowledge of the death of
2.2the principal or, if the power of attorney is not a durable power of attorney, actual notice of
2.3a judicial determination that the principal is legally incompetent. This provision does not
2.4negate any liability which a party would have to the principal or to the attorney-in-fact
2.5under any other form of power of attorney under the common law or otherwise.
2.6 Sec. 2. Minnesota Statutes 2012, section 523.23, subdivision 1, is amended to read:
2.7 Subdivision 1.
Form. The following form may be used to create a power of attorney,
2.8and, when used, it must be construed in accordance with sections
523.23 and
523.24:
2.9STATUTORY SHORT FORM POWER OF ATTORNEY
2.10MINNESOTA STATUTES, SECTION
523.23
2.11IMPORTANT NOTICE: The powers granted by this document are broad and
2.12sweeping. They are defined in Minnesota Statutes, section
. If you have any
2.13questions about these powers, obtain competent advice. This power of attorney may be
2.14revoked by you if you wish to do so. This power of attorney is automatically terminated
2.15if it is to your spouse and proceedings are commenced for dissolution, legal separation,
2.16or annulment of your marriage. This power of attorney authorizes, but does not require,
2.17the attorney-in-fact to act for you.
2.18
new text begin Before completing and signing this form, the principal must read and initial the new text end
2.19
new text begin IMPORTANT NOTICE TO PRINCIPAL that appears after the signature lines in this new text end
2.20
new text begin form. Before acting on behalf of the principal, the attorney(s)-in-fact must sign this new text end
2.21
new text begin form acknowledging having read and understood the IMPORTANT NOTICE TO new text end
2.22
new text begin ATTORNEY(S)-IN-FACT that appears after the notice to the principal.new text end
2.23PRINCIPAL (Name and Address of Person Granting the Power)
2.24
.....
2.25
.....
2.26
.....
2.27
2.28
ATTORNEY(S)-IN-FACT
SUCCESSOR
ATTORNEY(S)-IN-FACT
2.29
2.30
2.31
(Name and Address)
(Optional) To act if any named
attorney-in-fact dies, resigns, or is
otherwise unable to serve.
2.32
(Name and Address)
2.33
.....
First Successor
.....
2.34
.....
.....
2.35
.....
.....
2.36
.....
Second Successor
.....
2.37
.....
.....
3.1
.....
.....
3.2
3.3
3.4
3.5
3.6
NOTICE: If more than one
attorney-in-fact is designated new text begin to act at new text end
new text begin the same timenew text end , make a check or "x" on
the line in front of one of the following
statements:
3.7
... Each attorney-in-fact
EXPIRATION DATE (Optional)
3.8
3.9
may independently
exercise
.....
.....
,
.....
3.10
the powers granted.
Use Specific Month
Day
Year Only
3.11
... All attorneys-in-fact
3.12
must jointly exercise the
3.13
powers granted.
3.14I, (the above-named Principal) hereby appoint the above named Attorney(s)-in-Fact to act
3.15as my attorney(s)-in-fact:
3.16FIRST: To act for me in any way that I could act with respect to the following
3.17matters, as each of them is defined in Minnesota Statutes, section
523.24:
3.18(To grant to the attorney-in-fact any of the following powers, make a check or "x" on
3.19the line in front of each power being granted. You may, but need not, cross out each power
3.20not granted. Failure to make a check or "x" on the line in front of the power will have the
3.21effect of deleting the power unless the line in front of the power of (N) is checked or x-ed.)
3.22
.....
(A)
real property transactions;
3.23
3.24
I choose to limit this power to real property in
.....
County,
Minnesota, described as follows:
3.25
(Use legal description. Do not use street address.)
3.26
.....
3.27
.....
3.28
.....
3.29
.....
3.30
(If more space is needed, continue on the back or on an attachment.)
3.31
.....
(B)
tangible personal property transactions;
3.32
.....
(C)
bond, share, and commodity transactions;
3.33
.....
(D)
banking transactions;
3.34
.....
(E)
business operating transactions;
3.35
.....
(F)
insurance transactions;
3.36
.....
(G)
beneficiary transactions;
3.37
.....
(H)
gift transactions;
3.38
.....
(I)
fiduciary transactions;
3.39
.....
(J)
claims and litigation;
3.40
.....
(K)
family maintenance;
3.41
.....
(L)
benefits from military service;
4.1
.....
(M)
records, reports, and statements;
4.2
4.3
4.4
.....
(N)
all of the powers listed in (A) through (M) above and all other mattersnew text begin , new text end
new text begin other than health care decisions under a health care directive that complies new text end
new text begin with Minnesota Statutes, chapter 145Cnew text end .
4.5SECOND: (You must indicate below whether or not this power of attorney will be
4.6effective if you become incapacitated or incompetent. Make a check or "x" on the line in
4.7front of the statement that expresses your intent.)
4.8
4.9
.....
This power of attorney shall continue to be effective if I become incapacitated or
incompetent.
4.10
4.11
.....
This power of attorney shall not be effective if I become incapacitated or
incompetent.
4.12THIRD: (You must indicate below whether or not this power of attorney authorizes
4.13the attorney-in-fact to transfer your property to the attorney-in-fact. Make a check or "x"
4.14on the line in front of the statement that expresses your intent.)
4.15
4.16
.....
This power of attorney authorizes the attorney-in-fact to transfer my property
to the attorney-in-fact.
4.17
4.18
.....
This power of attorney does not authorize the attorney-in-fact to transfer my
property to the attorney-in-fact.
4.19
new text begin THIRD: My attorney(s)-in-fact MAY NOT make gifts to the attorney(s)-in-fact, or new text end
4.20
new text begin anyone the attorney(s)-in-fact are legally obligated to support, UNLESS I have made a new text end
4.21
new text begin check or an "x" on the line in front of the second statement below and I have written in the new text end
4.22
new text begin name(s) of the attorney(s)-in-fact. The second option allows you to limit the gifting power new text end
4.23
new text begin to only the attorney(s)-in-fact you name in the statement.new text end
4.24
new text begin Minnesota Statutes, section 523.24, subdivision 8, clause (2), limits the annual new text end
4.25
new text begin gift(s) made to my attorney(s)-in-fact, or to anyone the attorney(s)-in-fact are legally new text end
4.26
new text begin obligated to support, to an amount, in the aggregate, that does not exceed the federal new text end
4.27
new text begin annual gift tax exclusion amount in the year of the gift.new text end
4.28
4.29
.....
new text begin I do not authorize any of my attorney(s)-in-fact to make gifts to themselves or to new text end
new text begin anyone the attorney(s)-in-fact have a legal obligation to support.new text end
4.30
4.31
.....
new text begin I authorize new text end
.....
new text begin (write in name(s)), as my attorney(s)-in-fact, to make gifts to new text end
new text begin themselves or to anyone the attorney(s)-in-fact have a legal obligation to support.new text end
4.32FOURTH: (You may indicate below whether or not the attorney-in-fact is required
4.33to make an accounting. Make a check or "x" on the line in front of the statement that
4.34expresses your intent.)
4.35
4.36
.....
My attorney-in-fact need not render an accounting unless I request it or the
accounting is otherwise required by Minnesota Statutes, section
523.21.
4.37
.....
My attorney-in-fact must render
.....
4.38
(Monthly, Quarterly, Annual)
4.39
accountings to me or
.....
5.1
(Name and Address)
5.2
5.3
during my lifetime, and a final accounting to the personal representative of my
estate, if any is appointed, after my death.
5.4In Witness Whereof I have hereunto signed my name this
.....
day of
.....
,
.....
5.5
.....
5.6
(Signature of Principal)
5.7
(Acknowledgment of Principal)
5.8
STATE OF MINNESOTA
)
5.9
) ss.
5.10
COUNTY OF
)
5.11
The foregoing instrument was acknowledged before me this ..... day of .........., ........,
5.12
by
.....
5.13
(Insert Name of Principal)
5.14
.....
5.15
5.16
(Signature of Notary Public or
other Official)
5.17
5.18
new text begin Acknowledgement of notice to attorney(s)-in-fact and specimen signature of new text end
new text begin attorney(s)-in-fact.new text end
5.19
5.20
5.21
5.22
new text begin By signing below, I acknowledge I have read and understand the IMPORTANT NOTICE new text end
new text begin TO ATTORNEY(S)-IN-FACT required by Minnesota Statutes, section 523.23, and new text end
new text begin understand and accept the scope of any limitations to the powers and duties delegated new text end
new text begin to me by this instrument.new text end
5.23
new text begin (Notarization not required)new text end
5.24
.....
5.25
.....
5.26
5.27
This instrument was drafted by:
Specimen Signature of
Attorney(s)-in-Fact
5.28
(Notarization not required)
5.29
.....
.....
5.30
.....
.....
5.31
.....
.....
5.32
.....
.....
5.33
new text begin IMPORTANT NOTICE TO THE PRINCIPALnew text end
5.34
new text begin READ THIS NOTICE CAREFULLY. The power of attorney form that you will be new text end
5.35
new text begin signing is a legal document. It is governed by Minnesota Statutes, chapter 523. If there is new text end
5.36
new text begin anything about this form that you do not understand, you should seek legal advice.new text end
5.37
new text begin PURPOSE: The purpose of the power of attorney is for you, the principal, to give new text end
5.38
new text begin broad and sweeping powers to your attorney(s)-in-fact, who is the person you designate to new text end
5.39
new text begin handle your affairs. Any action taken by your attorney(s)-in-fact pursuant to the powers new text end
6.1
new text begin you designate in this power of attorney form binds you, your heirs and assigns, and the new text end
6.2
new text begin representative of your estate in the same manner as though you took the action yourself.new text end
6.3
new text begin POWERS GIVEN: You will be granting the attorney(s)-in-fact power to enter into new text end
6.4
new text begin transactions relating to any of your real or personal property, even without your consent or new text end
6.5
new text begin any advance notice to you. The powers granted to the attorney(s)-in-fact are broad and new text end
6.6
new text begin not supervised. THIS POWER OF ATTORNEY DOES NOT GRANT ANY POWERS new text end
6.7
new text begin TO MAKE HEALTH CARE DECISIONS FOR YOU. TO GIVE SOMEONE THOSE new text end
6.8
new text begin POWERS, YOU MUST USE A HEALTH CARE DIRECTIVE THAT COMPLIES WITH new text end
6.9
new text begin MINNESOTA STATUTES, CHAPTER 145C.new text end
6.10
new text begin DUTIES OF YOUR ATTORNEY(S)-IN-FACT: Your attorney(s)-in-fact must keep new text end
6.11
new text begin complete records of all transactions entered into on your behalf. You may request that your new text end
6.12
new text begin attorney(s)-in-fact provide you or someone else that you designate a periodic accounting, new text end
6.13
new text begin which is a written statement that gives reasonable notice of all transactions entered into on new text end
6.14
new text begin your behalf. Your attorney(s)-in-fact must also render an accounting if the attorney-in-fact new text end
6.15
new text begin reimburses himself or herself for any expenditure they made on behalf of you.new text end
6.16
new text begin An attorney-in-fact is personally liable to any person, including you, who is injured new text end
6.17
new text begin by an action taken by an attorney-in-fact in bad faith under the power of attorney or by an new text end
6.18
new text begin attorney-in-fact's failure to account when the attorney-in-fact has a duty to account under new text end
6.19
new text begin this section. The attorney(s)-in-fact must act with your interests utmost in mind.new text end
6.20
new text begin TERMINATION: If you choose, your attorney(s)-in-fact may exercise these powers new text end
6.21
new text begin throughout your lifetime, both before and after you become incapacitated. However, a new text end
6.22
new text begin court can take away the powers of your attorney(s)-in-fact because of improper acts. new text end
6.23
new text begin You may also revoke this power of attorney if you wish. This power of attorney is new text end
6.24
new text begin automatically terminated if the power is granted to your spouse and proceedings are new text end
6.25
new text begin commenced for dissolution, legal separation, or annulment of your marriage.new text end
6.26
new text begin This power of attorney authorizes, but does not require, the attorney(s)-in-fact to new text end
6.27
new text begin act for you. You are not required to sign this power of attorney, but it will not take effect new text end
6.28
new text begin without your signature. You should not sign this power of attorney if you do not understand new text end
6.29
new text begin everything in it, and what your attorney(s)-in-fact will be able to do if you do sign it.new text end
6.30
new text begin Please place your initials on the following line indicating you have read this new text end
6.31
new text begin IMPORTANT NOTICE TO THE PRINCIPAL: .......new text end
6.32
new text begin IMPORTANT NOTICE TO THE ATTORNEY(S)-IN-FACTnew text end
6.33
new text begin You have been nominated by the principal to act as an attorney-in-fact. You are new text end
6.34
new text begin under no duty to exercise the authority granted by the power of attorney. However, when new text end
6.35
new text begin you do exercise any power conferred by the power of attorney, you must:new text end
6.36
new text begin (1) act with the interests of the principal utmost in mind;new text end
7.1
new text begin (2) exercise the power in the same manner as an ordinarily prudent person of new text end
7.2
new text begin discretion and intelligence would exercise in the management of the person's own affairs;new text end
7.3
new text begin (3) render accountings as directed by the principal or whenever you reimburse new text end
7.4
new text begin yourself for expenditures made on behalf of the principal;new text end
7.5
new text begin (4) act in good faith for the best interest of the principal, using due care, competence, new text end
7.6
new text begin and diligence;new text end
7.7
new text begin (5) cease acting on behalf of the principal if you learn of any event that terminates new text end
7.8
new text begin this power of attorney or terminates your authority under this power of attorney, such new text end
7.9
new text begin as revocation by the principal of the power of attorney, the death of the principal, or new text end
7.10
new text begin the commencement of proceedings for dissolution, separation, or annulment of your new text end
7.11
new text begin marriage to the principal;new text end
7.12
new text begin (6) disclose your identity as an attorney-in-fact whenever you act for the principal new text end
7.13
new text begin by signing in substantially the following manner:new text end
7.14
new text begin Signature by a person as "attorney-in-fact for (name of the principal)" or "(name of new text end
7.15
new text begin the principal) by (name of the attorney-in-fact) the principal's attorney-in-fact"; andnew text end
7.16
new text begin (7) acknowledge you have read and understood this IMPORTANT NOTICE TO new text end
7.17
new text begin THE ATTORNEY(S)-IN-FACT by signing the power of attorney form.new text end
7.18
new text begin You are personally liable to any person, including the principal, who is injured by new text end
7.19
new text begin an action taken by you in bad faith under the power of attorney or by your failure to new text end
7.20
new text begin account when the duty to account has arisen.new text end
7.21
new text begin The meaning of the powers granted to you is contained in Minnesota Statutes, new text end
7.22
new text begin chapter 523. If there is anything about this document or your duties that you do not new text end
7.23
new text begin understand, you should seek legal advice.new text end
7.24 Sec. 3. Minnesota Statutes 2012, section 523.23, is amended by adding a subdivision
7.25to read:
7.26
new text begin Subd. 6.new text end new text begin Effective date of amendments.new text end new text begin The amendments to the form under new text end
7.27
new text begin subdivision 1 and to section 523.24, subdivision 8, that are contained in this act are effective new text end
7.28
new text begin January 1, 2014, and apply to powers of attorney executed on or after that date. These new text end
7.29
new text begin amendments do not invalidate or impair a power of attorney executed before that date.new text end
7.30 Sec. 4. Minnesota Statutes 2012, section 523.24, subdivision 8, is amended to read:
7.31 Subd. 8.
Gift transactions. In the statutory short form power of attorney, the
7.32language conferring general authority with respect to gift transactions, means that the
7.33principal authorizes the attorney-in-fact:
8.1(1) to make gifts to organizations, whether charitable or otherwise, to which the
8.2principal has made gifts, and to satisfy pledges made to organizations by the principal;
8.3(2) to make gifts on behalf of the principal to the principal's spouse, children, and
8.4other descendants or the spouse of any child or other descendant, and, if authorized by
8.5the principal in part Third, to the attorney-in-fact, either outright or in trust, for purposes
8.6which the attorney-in-fact deems to be in the best interest of the principal, specifically
8.7including minimization of income, estate, inheritance, or gift taxes, provided that,
8.8notwithstanding that the principal in part Third may have authorized the attorney-in-fact
8.9to transfer the principal's property to the attorney-in-fact, no attorney-in-fact nor anyone
8.10the attorney-in-fact has a legal obligation to support may be the recipient of any gifts in
8.11any one calendar year which, in the aggregate, exceed $10,000 in value to each recipient
8.12
new text begin the federal annual gift tax exclusion amount in the year of the giftnew text end ;
8.13(3) to prepare, execute, consent to on behalf of the principal, and file any return,
8.14report, declaration, or other document required by the laws of the United States, any state
8.15or subdivision of a state, or any foreign government, which the attorney-in-fact deems to be
8.16desirable or necessary with respect to any gift made under the authority of this subdivision;
8.17(4) to execute, acknowledge, seal, and deliver any deed, assignment, agreement,
8.18authorization, check, or other instrument which the attorney-in-fact deems useful for the
8.19accomplishment of any of the purposes enumerated in this subdivision;
8.20(5) to prosecute, defend, submit to arbitration, settle, and propose or accept a
8.21compromise with respect to any claim existing in favor of or against the principal based
8.22on or involving any gift transaction or to intervene in any related action or proceeding;
8.23(6) to hire, discharge, and compensate any attorney, accountant, expert witness, or
8.24other assistant when the attorney-in-fact deems that action to be desirable for the proper
8.25execution by the attorney-in-fact of any of the powers described in this subdivision, and
8.26for the keeping of needed records; and
8.27(7) in general, and in addition to but not in contravention of all the specific acts
8.28listed in this subdivision, to do any other acts which the attorney-in-fact deems desirable
8.29or necessary to complete any gift on behalf of the principal.
8.30All powers described in this subdivision are exercisable equally with respect to a gift
8.31of any property in which the principal is interested at the giving of the power of attorney
8.32or becomes interested after that time, and whether located in the state of Minnesota or
8.33elsewhere.
8.34 Sec. 5. Minnesota Statutes 2012, section 523.24, subdivision 14, is amended to read:
9.1 Subd. 14.
All other matters. In a statutory short form power of attorney, the
9.2language conferring general authority with respect to all other matters, means that the
9.3principal authorizes the attorney-in-fact to act as an alter ego of the principal with respect
9.4to any and all possible matters and affairs affecting property owned by
new text begin affecting the affairs new text end
9.5
new text begin ofnew text end the principal which are not enumerated in subdivisions 1 to 13, and which the principal
9.6can do through an agent.
new text begin The language conferring general authority does not include any new text end
9.7
new text begin powers to make health care decisions for the principal.new text end
9.8 Sec. 6.
new text begin [523.26] JUDICIAL RELIEF.new text end
9.9
new text begin (a) The principal or any interested person, as defined in section 524.5-102, new text end
9.10
new text begin subdivision 7, may petition the court for a protective order directing an attorney-in-fact to new text end
9.11
new text begin provide an accounting, on a schedule directed by a court, or for any other relief as provided new text end
9.12
new text begin in sections 524.5-401 to 524.5-502. The principal or a person named by the principal in new text end
9.13
new text begin the power of attorney to receive accountings is entitled to recover reasonable attorney fees new text end
9.14
new text begin and costs if the court finds that the attorney-in-fact failed to render an accounting to the new text end
9.15
new text begin principal or any person named by the principal in the power of attorney form to receive new text end
9.16
new text begin accountings after the duty to render an accounting arose.new text end
9.17
new text begin (b) This section is effective August 1, 2013, and applies to powers of attorney new text end
9.18
new text begin executed before, on, or after that date.new text end
