Bill Text: MN HF232 | 2013-2014 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Statutory short form power of attorney modified, and judicial relief authorized.
Spectrum: Slight Partisan Bill (Democrat 5-2)
Status: (Passed) 2013-04-25 - Secretary of State Chapter 23 04/24/13 [HF232 Detail]
Download: Minnesota-2013-HF232-Introduced.html
Bill Title: Statutory short form power of attorney modified, and judicial relief authorized.
Spectrum: Slight Partisan Bill (Democrat 5-2)
Status: (Passed) 2013-04-25 - Secretary of State Chapter 23 04/24/13 [HF232 Detail]
Download: Minnesota-2013-HF232-Introduced.html
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; 523.24, subdivisions 8, 14; proposing coding for
1.5new 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:
1.8523.20 LIABILITY OF PARTIES REFUSING AUTHORITY OF
1.9ATTORNEY-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 section523.23 or
1.12a form prepared under section523.231 ; (2) contains a an acknowledgement and specimen
1.13signature of the attorney-in-fact authorized to act; (3) with regard to the execution
1.14or delivery of any recordable instrument relating to real property, is accompanied by
1.15affidavits that satisfy the provisions of section523.17 ; (4) with regard to any other
1.16transaction, is signed by the attorney-in-fact in a manner conforming to section523.18 ;
1.17and (5) when applicable, is accompanied by an affidavit and any other document required
1.18by section523.16 , is liable to the principal and to the principal's heirs, assigns, and
1.19representative of the estate of the principal in the same manner as the party would be liable
1.20had the party refused to accept the authority of the principal to act on the principal's own
1.21behalf unless: (1) the party has actual notice of the revocation of the power of attorney
1.22prior to the exercise of the power; (2) the duration of the power of attorney specified in the
1.23power of attorney itself has expired; or (3) the party has actual knowledge of the death of
1.24the principal or, if the power of attorney is not a durable power of attorney, actual notice of
2.1a judicial determination that the principal is legally incompetent. This provision does not
2.2negate any liability which a party would have to the principal or to the attorney-in-fact
2.3under any other form of power of attorney under the common law or otherwise.
2.4 Sec. 2. Minnesota Statutes 2012, section 523.23, subdivision 1, is amended to read:
2.5 Subdivision 1. Form. The following form may be used to create a power of attorney,
2.6and, when used, it must be construed in accordance with sections523.23 and
523.24 :
2.8MINNESOTA STATUTES, SECTION523.23
2.9IMPORTANT NOTICE TO THE PRINCIPAL: The powers granted by this
2.10document are broad and sweeping. They are defined in Minnesota Statutes, section
2.11523.24
. If you have any questions about these powers, obtain competent advice. This
2.12power of attorney may be revoked by you if you wish to do so. This power of attorney
2.13is automatically terminated if it is to your spouse and proceedings are commenced for
2.14dissolution, legal separation, or annulment of your marriage. This power of attorney
2.15authorizes, but does not require, the attorney-in-fact to act for you.
2.16IMPORTANT NOTICE TO THE ATTORNEY-IN-FACT: Each person named as an
2.17attorney-in-fact in this document must sign and date below before exercising authority as
2.18an attorney-in-fact.
3.8I, (the above-named Principal) hereby appoint the above named Attorney(s)-in-Fact to act
3.9as my attorney(s)-in-fact:
3.10FIRST: To act for me in any way that I could act with respect to the following
3.11matters, as each of them is defined in Minnesota Statutes, section523.24 :
3.12(To grant to the attorney-in-fact any of the following powers, make a check or "x" on
3.13the line in front of each power being granted. You may, but need not, cross out each power
3.14not granted. Failure to make a check or "x" on the line in front of the power will have the
3.15effect of deleting the power unless the line in front of the power of (N) is checked or x-ed.)
3.39SECOND: (You must indicate below whether or not this power of attorney will be
3.40effective if you become incapacitated or incompetent. Make a check or "x" on the line in
3.41front of the statement that expresses your intent.)
4.5THIRD:(You must indicate below whether or not this power of attorney authorizes
4.6the attorney-in-fact to transfer your property to the attorney-in-fact. Make a check or "x" on
4.7the line in front of the statement that expresses your intent.) My attorney-in-fact MAY NOT
4.8make gifts to the attorney-in-fact or to anyone the attorney-in-fact is legally obligated to
4.9support UNLESS I have initialed below and written in the name(s) of the attorney-in-fact:
4.10(CAUTION: Granting this power may make it easier for your attorney-in-fact
4.11to make improper or illegal transactions).
4.21FOURTH: (You may indicate below whether or not the attorney-in-fact is required
4.22to make an accounting. Make a check or "x" on the line in front of the statement that
4.23expresses your intent.)
4.32In Witness Whereof I have hereunto signed my name this
.....
day of
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,
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5.30 Sec. 3. Minnesota Statutes 2012, section 523.24, subdivision 8, is amended to read:
5.31 Subd. 8. Gift transactions. In the statutory short form power of attorney, the
5.32language conferring general authority with respect to gift transactions, means that the
5.33principal authorizes the attorney-in-fact:
5.34(1) to make gifts to organizations, whether charitable or otherwise, to which the
5.35principal has made gifts, and to satisfy pledges made to organizations by the principal;
5.36(2) to make gifts on behalf of the principal to the principal's spouse, children, and
5.37other descendants or the spouse of any child or other descendant, and, if authorized by
5.38the principal in part Third, to the attorney-in-fact, either outright or in trust, for purposes
5.39which the attorney-in-fact deems to be in the best interest of the principal, specifically
5.40including minimization of income, estate, inheritance, or gift taxes, provided that,
5.41notwithstanding that the principal in part Third may have authorized the attorney-in-fact
6.1to transfer the principal's property to the attorney-in-fact, no attorney-in-fact nor anyone
6.2the attorney-in-fact has a legal obligation to support may be the recipient of any gifts in
6.3any one calendar year which, in the aggregate, exceed$10,000 in value to each recipient
6.4 the then applicable federal annual gift exclusion amount to each recipient;
6.5(3) to prepare, execute, consent to on behalf of the principal, and file any return,
6.6report, declaration, or other document required by the laws of the United States, any state
6.7or subdivision of a state, or any foreign government, which the attorney-in-fact deems to be
6.8desirable or necessary with respect to any gift made under the authority of this subdivision;
6.9(4) to execute, acknowledge, seal, and deliver any deed, assignment, agreement,
6.10authorization, check, or other instrument which the attorney-in-fact deems useful for the
6.11accomplishment of any of the purposes enumerated in this subdivision;
6.12(5) to prosecute, defend, submit to arbitration, settle, and propose or accept a
6.13compromise with respect to any claim existing in favor of or against the principal based
6.14on or involving any gift transaction or to intervene in any related action or proceeding;
6.15(6) to hire, discharge, and compensate any attorney, accountant, expert witness, or
6.16other assistant when the attorney-in-fact deems that action to be desirable for the proper
6.17execution by the attorney-in-fact of any of the powers described in this subdivision, and
6.18for the keeping of needed records; and
6.19(7) in general, and in addition to but not in contravention of all the specific acts
6.20listed in this subdivision, to do any other acts which the attorney-in-fact deems desirable
6.21or necessary to complete any gift on behalf of the principal.
6.22All powers described in this subdivision are exercisable equally with respect to a gift
6.23of any property in which the principal is interested at the giving of the power of attorney
6.24or becomes interested after that time, and whether located in the state of Minnesota or
6.25elsewhere.
6.26For purposes of clause (2), a gift shall include, but is not limited to, any transaction
6.27in which the attorney-in-fact: (i) names the attorney-in-fact or anyone the attorney-in-fact
6.28is legally obligated to support as beneficiary on a new or existing asset or account of
6.29the principal, or (ii) names the attorney-in-fact or anyone the attorney-in-fact is legally
6.30obligated to support as a joint owner with rights of survivorship on a new or existing
6.31asset or account of the principal.
6.32 Sec. 4. Minnesota Statutes 2012, section 523.24, subdivision 14, is amended to read:
6.33 Subd. 14. All other financial matters. In a statutory short form power of attorney,
6.34the language conferring general authority with respect to all other matters, means that the
6.35principal authorizes the attorney-in-fact to act as an alter ego of the principal with respect
7.1to any and all possible mattersand affairs affecting property owned by the principal
7.2 affecting the financial affairs of the principal which are not enumerated in subdivisions 1
7.3to 13, and which the principal can do through an agent.
7.4 Sec. 5. [523.26] JUDICIAL RELIEF.
7.5 Subdivision 1. Authorization. In addition to any other remedies available under the
7.6law, the principal or any interested person, as defined in section 524.5-102, subdivision
7.77, may petition the court for a protective order directing the attorney-in-fact to provide
7.8an accounting, on a schedule directed by the court, or for any other relief as provided in
7.9sections 524.5-401 to 524.5-502.
7.10 Subd. 2. Damages. If the court finds that an attorney-in-fact has failed to account to
7.11the principal after the principal has requested an accounting, or if the court finds that an
7.12attorney-in-fact has failed to account to any person named by the principal in the power of
7.13attorney to receive accountings, the principal is entitled to recover damages equal to three
7.14times the amount of compensatory damages or $10,000, whichever is greater. In addition
7.15to damages, the principal, or other person to whom the attorney-in-fact failed to account,
7.16is entitled to recover reasonable attorney fees and costs.
7.17 Sec. 6. EFFECTIVE DATE.
7.18Sections 1 to 4 are effective August 1, 2013, and apply to powers-of-attorney
7.19executed on or after that date. Section 5 is effective August 1, 2013, and applies to
7.20powers-of-attorney executed before, on, or after that date.
1.3authorizing certain judicial relief; amending Minnesota Statutes 2012, sections
1.4523.20; 523.23, subdivision 1; 523.24, subdivisions 8, 14; proposing coding for
1.5new 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:
1.8523.20 LIABILITY OF PARTIES REFUSING AUTHORITY OF
1.9ATTORNEY-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
1.12a form prepared under section
1.13signature of the attorney-in-fact authorized to act; (3) with regard to the execution
1.14or delivery of any recordable instrument relating to real property, is accompanied by
1.15affidavits that satisfy the provisions of section
1.16transaction, is signed by the attorney-in-fact in a manner conforming to section
1.17and (5) when applicable, is accompanied by an affidavit and any other document required
1.18by section
1.19representative of the estate of the principal in the same manner as the party would be liable
1.20had the party refused to accept the authority of the principal to act on the principal's own
1.21behalf unless: (1) the party has actual notice of the revocation of the power of attorney
1.22prior to the exercise of the power; (2) the duration of the power of attorney specified in the
1.23power of attorney itself has expired; or (3) the party has actual knowledge of the death of
1.24the principal or, if the power of attorney is not a durable power of attorney, actual notice of
2.1a judicial determination that the principal is legally incompetent. This provision does not
2.2negate any liability which a party would have to the principal or to the attorney-in-fact
2.3under any other form of power of attorney under the common law or otherwise.
2.4 Sec. 2. Minnesota Statutes 2012, section 523.23, subdivision 1, is amended to read:
2.5 Subdivision 1. Form. The following form may be used to create a power of attorney,
2.6and, when used, it must be construed in accordance with sections
2.8MINNESOTA STATUTES, SECTION
2.10document are broad and sweeping. They are defined in Minnesota Statutes, section
2.12power of attorney may be revoked by you if you wish to do so. This power of attorney
2.13is automatically terminated if it is to your spouse and proceedings are commenced for
2.14dissolution, legal separation, or annulment of your marriage. This power of attorney
2.15authorizes, but does not require, the attorney-in-fact to act for you.
2.16IMPORTANT NOTICE TO THE ATTORNEY-IN-FACT: Each person named as an
2.17attorney-in-fact in this document must sign and date below before exercising authority as
2.18an attorney-in-fact.
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| 2.22 |
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3.9as my attorney(s)-in-fact:
3.10FIRST: To act for me in any way that I could act with respect to the following
3.11matters, as each of them is defined in Minnesota Statutes, section
3.12(To grant to the attorney-in-fact any of the following powers, make a check or "x" on
3.13the line in front of each power being granted. You may, but need not, cross out each power
3.14not granted. Failure to make a check or "x" on the line in front of the power will have the
3.15effect of deleting the power unless the line in front of the power of (N) is checked or x-ed.)
3.39SECOND: (You must indicate below whether or not this power of attorney will be
3.40effective if you become incapacitated or incompetent. Make a check or "x" on the line in
3.41front of the statement that expresses your intent.)
4.5THIRD:
4.6
4.7
4.8make gifts to the attorney-in-fact or to anyone the attorney-in-fact is legally obligated to
4.9support UNLESS I have initialed below and written in the name(s) of the attorney-in-fact:
4.10(CAUTION: Granting this power may make it easier for your attorney-in-fact
4.11to make improper or illegal transactions).
4.21FOURTH: (You may indicate below whether or not the attorney-in-fact is required
4.22to make an accounting. Make a check or "x" on the line in front of the statement that
4.23expresses your intent.)
| 4.24 4.25 |
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My attorney-in-fact need not render an accounting unless I request it or the accounting is otherwise required by Minnesota Statutes, section |
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| 4.34 |
(Signature of Principal) |
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| 4.35 |
(Acknowledgment of Principal) |
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| 4.36 |
STATE OF MINNESOTA |
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| 4.37 |
) ss. |
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| 4.38 |
COUNTY OF |
) |
5.30 Sec. 3. Minnesota Statutes 2012, section 523.24, subdivision 8, is amended to read:
5.31 Subd. 8. Gift transactions. In the statutory short form power of attorney, the
5.32language conferring general authority with respect to gift transactions, means that the
5.33principal authorizes the attorney-in-fact:
5.34(1) to make gifts to organizations, whether charitable or otherwise, to which the
5.35principal has made gifts, and to satisfy pledges made to organizations by the principal;
5.36(2) to make gifts on behalf of the principal to the principal's spouse, children, and
5.37other descendants or the spouse of any child or other descendant, and, if authorized by
5.38the principal in part Third, to the attorney-in-fact, either outright or in trust, for purposes
5.39which the attorney-in-fact deems to be in the best interest of the principal, specifically
5.40including minimization of income, estate, inheritance, or gift taxes, provided that,
5.41notwithstanding that the principal in part Third may have authorized the attorney-in-fact
6.1to transfer the principal's property to the attorney-in-fact, no attorney-in-fact nor anyone
6.2the attorney-in-fact has a legal obligation to support may be the recipient of any gifts in
6.3any one calendar year which, in the aggregate, exceed
6.4 the then applicable federal annual gift exclusion amount to each recipient;
6.5(3) to prepare, execute, consent to on behalf of the principal, and file any return,
6.6report, declaration, or other document required by the laws of the United States, any state
6.7or subdivision of a state, or any foreign government, which the attorney-in-fact deems to be
6.8desirable or necessary with respect to any gift made under the authority of this subdivision;
6.9(4) to execute, acknowledge, seal, and deliver any deed, assignment, agreement,
6.10authorization, check, or other instrument which the attorney-in-fact deems useful for the
6.11accomplishment of any of the purposes enumerated in this subdivision;
6.12(5) to prosecute, defend, submit to arbitration, settle, and propose or accept a
6.13compromise with respect to any claim existing in favor of or against the principal based
6.14on or involving any gift transaction or to intervene in any related action or proceeding;
6.15(6) to hire, discharge, and compensate any attorney, accountant, expert witness, or
6.16other assistant when the attorney-in-fact deems that action to be desirable for the proper
6.17execution by the attorney-in-fact of any of the powers described in this subdivision, and
6.18for the keeping of needed records; and
6.19(7) in general, and in addition to but not in contravention of all the specific acts
6.20listed in this subdivision, to do any other acts which the attorney-in-fact deems desirable
6.21or necessary to complete any gift on behalf of the principal.
6.22All powers described in this subdivision are exercisable equally with respect to a gift
6.23of any property in which the principal is interested at the giving of the power of attorney
6.24or becomes interested after that time, and whether located in the state of Minnesota or
6.25elsewhere.
6.26For purposes of clause (2), a gift shall include, but is not limited to, any transaction
6.27in which the attorney-in-fact: (i) names the attorney-in-fact or anyone the attorney-in-fact
6.28is legally obligated to support as beneficiary on a new or existing asset or account of
6.29the principal, or (ii) names the attorney-in-fact or anyone the attorney-in-fact is legally
6.30obligated to support as a joint owner with rights of survivorship on a new or existing
6.31asset or account of the principal.
6.32 Sec. 4. Minnesota Statutes 2012, section 523.24, subdivision 14, is amended to read:
6.33 Subd. 14. All other financial matters. In a statutory short form power of attorney,
6.34the language conferring general authority with respect to all other matters, means that the
6.35principal authorizes the attorney-in-fact to act as an alter ego of the principal with respect
7.1to any and all possible matters
7.2 affecting the financial affairs of the principal which are not enumerated in subdivisions 1
7.3to 13, and which the principal can do through an agent.
7.4 Sec. 5. [523.26] JUDICIAL RELIEF.
7.5 Subdivision 1. Authorization. In addition to any other remedies available under the
7.6law, the principal or any interested person, as defined in section 524.5-102, subdivision
7.77, may petition the court for a protective order directing the attorney-in-fact to provide
7.8an accounting, on a schedule directed by the court, or for any other relief as provided in
7.9sections 524.5-401 to 524.5-502.
7.10 Subd. 2. Damages. If the court finds that an attorney-in-fact has failed to account to
7.11the principal after the principal has requested an accounting, or if the court finds that an
7.12attorney-in-fact has failed to account to any person named by the principal in the power of
7.13attorney to receive accountings, the principal is entitled to recover damages equal to three
7.14times the amount of compensatory damages or $10,000, whichever is greater. In addition
7.15to damages, the principal, or other person to whom the attorney-in-fact failed to account,
7.16is entitled to recover reasonable attorney fees and costs.
7.17 Sec. 6. EFFECTIVE DATE.
7.18Sections 1 to 4 are effective August 1, 2013, and apply to powers-of-attorney
7.19executed on or after that date. Section 5 is effective August 1, 2013, and applies to
7.20powers-of-attorney executed before, on, or after that date.
