Bill Text: MN HF232 | 2013-2014 | 88th Legislature | Engrossed
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.
Sponsorship: 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-Engrossed.html
Bill Title: Statutory short form power of attorney modified, and judicial relief authorized.
Sponsorship: 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-Engrossed.html
1.2relating to civil law; modifying the statutory short form power of attorney;
1.3authorizing certain judicial relief; modifying gift transaction amount; amending
1.4Minnesota Statutes 2012, sections 523.20; 523.23, subdivision 1, by adding
1.5subdivisions; 523.24, subdivisions 8, 14; proposing coding for new law in
1.6Minnesota Statutes, chapter 523.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 523.20, is amended to read:
1.9523.20 LIABILITY OF PARTIES REFUSING AUTHORITY OF
1.10ATTORNEY-IN-FACT TO ACT ON PRINCIPAL'S BEHALF.
1.11Any party refusing to accept the authority of an attorney-in-fact to exercise a power
1.12granted by a power of attorney which (1) is executed in conformity with section523.23
1.13or a form prepared under section523.231 ; (2) contains an acknowledgement that the
1.14attorney-in-fact has read and understood the notice required under section 523.23,
1.15subdivision 1b, and a specimen signature of the attorney-in-fact authorized to act; (3) with
1.16regard to the execution or delivery of any recordable instrument relating to real property, is
1.17accompanied by affidavits that satisfy the provisions of section523.17 ; (4) with regard to
1.18any other transaction, is signed by the attorney-in-fact in a manner conforming to section
1.19523.18
; and (5) when applicable, is accompanied by an affidavit and any other document
1.20required by section523.16 , 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
1.25power of attorney itself has expired; or (3) the party has actual knowledge of the death of
2.1the principal or, if the power of attorney is not a durable power of attorney, actual notice of
2.2a judicial determination that the principal is legally incompetent. This provision does not
2.3negate any liability which a party would have to the principal or to the attorney-in-fact
2.4under any other form of power of attorney under the common law or otherwise.
2.5 Sec. 2. Minnesota Statutes 2012, section 523.23, subdivision 1, is amended to read:
2.6 Subdivision 1. Form. The following form may be used to create a power of attorney,
2.7and, when used, it must be construed in accordance with sections523.23 and
523.24 . The
2.8form must include the notices required under subdivisions 1a and 1b:
2.10MINNESOTA STATUTES, SECTION523.23
2.11IMPORTANT NOTICE: The powers granted by this document are broad and
2.12sweeping. They are defined in Minnesota Statutes, section
523.24. 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.
2.18Before completing and signing this form, the principal must read and initial the
2.19IMPORTANT NOTICE TO PRINCIPAL. Before acting on behalf of the principal, the
2.20attorney(s)-in-fact must sign this form acknowledging having read and understood the
2.21IMPORTANT NOTICE TO ATTORNEY(S)-IN-FACT.
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, section523.24 :
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.)
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.)
4.12THIRD: (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.)
4.19THIRD: My attorney(s)-in-fact MAY NOT make gifts to the attorney(s)-in-fact, or
4.20anyone the attorney(s)-in-fact are legally obligated to support, UNLESS I have made a
4.21check or an "x" on the line in front of the second statement below and I have written in the
4.22name(s) of the attorney(s)-in-fact. The second option allows you to limit the gifting power
4.23to only the attorney(s)-in-fact you name in the statement.
4.24Minnesota Statutes, section 523.24, subdivision 8, clause (2), limits the annual
4.25gift(s) made to my attorney(s)-in-fact, or to anyone the attorney(s)-in-fact are legally
4.26obligated to support, to an amount, in the aggregate, that does not exceed the federal
4.27annual gift tax exclusion amount in the year of the gift.
4.33FOURTH: (You may indicate below whether or not the attorney-in-fact is required
4.34to make an accounting. Make a check or "x" on the line in front of the statement that
4.35expresses your intent.)
5.5In Witness Whereof I have hereunto signed my name this
.....
day of
.....
,
.....
5.34 Sec. 3. Minnesota Statutes 2012, section 523.23, is amended by adding a subdivision
5.35to read:
5.36 Subd. 1a. Notice to principal. The following verbatim notice must be included as
5.37part of this statutory short form power of attorney:
6.2MINNESOTA STATUTES, SECTION 523.23
6.3IMPORTANT NOTICE TO THE PRINCIPAL
6.4READ THIS NOTICE CAREFULLY. The power of attorney form that you will be
6.5signing is a legal document. It is governed by Minnesota Statutes, chapter 523. If there is
6.6anything about this form that you do not understand, you should seek legal advice.
6.7PURPOSE: The purpose of the power of attorney is for you, the principal, to give
6.8broad and sweeping powers to your attorney(s)-in-fact, who is the person you designate to
6.9handle your financial affairs. Any action taken by your attorney(s)-in-fact pursuant to the
6.10powers you designate in this power of attorney form binds you, your heirs and assigns, and
6.11the representative of your estate in the same manner as though you took the action yourself.
6.12POWERS GIVEN: You will be granting the attorney(s)-in-fact power to enter into
6.13transactions relating to any of your real or personal property, even without your consent or
6.14any advance notice to you. The powers granted to the attorney(s)-in-fact are broad and
6.15not supervised. THIS POWER OF ATTORNEY DOES NOT GRANT ANY POWERS
6.16TO MAKE MEDICAL DECISIONS FOR YOU. TO GIVE SOMEONE THOSE
6.17POWERS, YOU MUST USE A HEALTH CARE DIRECTIVE THAT COMPLIES WITH
6.18MINNESOTA STATUTES, CHAPTER 145C.
6.19DUTIES OF YOUR ATTORNEY(S)-IN-FACT: Your attorney(s)-in-fact must
6.20keep complete records of all transactions entered into on your behalf. You may request
6.21that your attorney(s)-in-fact provide you or someone else that you designate a periodic
6.22accounting, which is a written statement that gives reasonable notice of all transactions
6.23entered into on your behalf. Your attorney(s)-in-fact must also render an accounting if the
6.24attorney(s)-in-fact reimburses himself or herself for any expenditure made on behalf of you.
6.25An attorney-in-fact is personally liable to any person, including you, who is injured
6.26by an action taken by the attorney-in-fact in bad faith under the power of attorney or by
6.27the failure of an attorney-in-fact to account when the attorney-in-fact has a duty to account
6.28under this section. The attorney(s)-in-fact must act with your interests utmost in mind.
6.29TERMINATION: If you choose, your attorney(s)-in-fact may exercise these powers
6.30throughout your lifetime, both before and after you become incapacitated. However, a
6.31court can take away the powers of your attorney(s)-in-fact because of improper acts.
6.32You may also revoke this power of attorney if you wish. This power of attorney is
6.33automatically terminated if the power is granted to your spouse and proceedings are
6.34commenced for dissolution, legal separation, or annulment of your marriage.
6.35This power of attorney authorizes, but does not require, the attorney(s)-in-fact to
6.36act for you. You are not required to sign this power of attorney, but it will not take effect
7.1without your signature. You should not sign this power of attorney if you do not understand
7.2everything in it, and what your attorney(s)-in-fact will be able to do if you do sign it.
7.3Please place your initials on the following line indicating you have read this
7.4IMPORTANT NOTICE TO THE PRINCIPAL: .......
7.5 Sec. 4. Minnesota Statutes 2012, section 523.23, is amended by adding a subdivision
7.6to read:
7.7 Subd. 1b. Notice to attorney(s)-in-fact. The following verbatim notice must be
7.8included as a part of this statutory short form power of attorney:
7.10MINNESOTA STATUTES, SECTION 523.23
7.11IMPORTANT NOTICE TO THE ATTORNEY(S)-IN-FACT
7.12(This notice is incorporated by reference and is included as part of the statutory short
7.13form power of attorney.)
7.14You have been nominated by the principal to act as attorney-in-fact. You are under
7.15no duty to exercise the authority granted by the power of attorney. However, when you do
7.16exercise any power conferred by the power of attorney, you must:
7.17(1) act with the interests of the principal utmost in mind;
7.18(2) exercise the power in the same manner as an ordinarily prudent person of
7.19discretion and intelligence would exercise in the management of the person's own affairs;
7.20(3) render accountings as directed by the principal or whenever you reimburse
7.21yourself for expenditures made on behalf of the principal;
7.22(4) act in good faith for the best interests of the principal, using due care,
7.23competence, and diligence;
7.24(5) cease acting on behalf of the principal if you learn of any event that terminates
7.25this power of attorney or terminates your authority under this power of attorney, such
7.26as revocation by the principal of the power of attorney, the death of the principal, or
7.27the commencement of proceedings for dissolution, separation, or annulment of your
7.28marriage to the principal;
7.29(6) disclose your identity as an attorney-in-fact whenever you act for the principal
7.30by signing in substantially the following manner:
7.31Signature by a person as "attorney-in-fact for (name of the principal)" or "(name of
7.32the principal) by (name of the attorney-in-fact) the principal's attorney-in-fact"
7.33(7) acknowledge you have read and understood this IMPORTANT NOTICE TO
7.34THE ATTORNEY(S)-IN-FACT by signing the power of attorney form.
8.1You are personally liable to any person, including the principal, who is injured by
8.2an action taken by you in bad faith under the power of attorney or by your failure to
8.3account when the duty to account has arisen.
8.4The meaning of the powers granted to you is contained in Minnesota Statutes,
8.5chapter 523. If there is anything about this document or your duties that you do not
8.6understand, you should seek legal advice from an attorney.
8.7 Sec. 5. Minnesota Statutes 2012, section 523.24, subdivision 8, is amended to read:
8.8 Subd. 8. Gift transactions. In the statutory short form power of attorney, the
8.9language conferring general authority with respect to gift transactions, means that the
8.10principal authorizes the attorney-in-fact:
8.11(1) to make gifts to organizations, whether charitable or otherwise, to which the
8.12principal has made gifts, and to satisfy pledges made to organizations by the principal;
8.13(2) to make gifts on behalf of the principal to the principal's spouse, children, and
8.14other descendants or the spouse of any child or other descendant, and, if authorized by
8.15the principal in part Third, to the attorney-in-fact, either outright or in trust, for purposes
8.16which the attorney-in-fact deems to be in the best interest of the principal, specifically
8.17including minimization of income, estate, inheritance, or gift taxes, provided that,
8.18notwithstanding that the principal in part Third may have authorized the attorney-in-fact
8.19to transfer the principal's property to the attorney-in-fact, no attorney-in-fact nor anyone
8.20the attorney-in-fact has a legal obligation to support may be the recipient of any gifts in
8.21any one calendar year which, in the aggregate, exceed$10,000 in value the federal annual
8.22gift tax exclusion amount in the year of the giftto each recipient;
8.23(3) to prepare, execute, consent to on behalf of the principal, and file any return,
8.24report, declaration, or other document required by the laws of the United States, any state
8.25or subdivision of a state, or any foreign government, which the attorney-in-fact deems to be
8.26desirable or necessary with respect to any gift made under the authority of this subdivision;
8.27(4) to execute, acknowledge, seal, and deliver any deed, assignment, agreement,
8.28authorization, check, or other instrument which the attorney-in-fact deems useful for the
8.29accomplishment of any of the purposes enumerated in this subdivision;
8.30(5) to prosecute, defend, submit to arbitration, settle, and propose or accept a
8.31compromise with respect to any claim existing in favor of or against the principal based
8.32on or involving any gift transaction or to intervene in any related action or proceeding;
8.33(6) to hire, discharge, and compensate any attorney, accountant, expert witness, or
8.34other assistant when the attorney-in-fact deems that action to be desirable for the proper
9.1execution by the attorney-in-fact of any of the powers described in this subdivision, and
9.2for the keeping of needed records; and
9.3(7) in general, and in addition to but not in contravention of all the specific acts
9.4listed in this subdivision, to do any other acts which the attorney-in-fact deems desirable
9.5or necessary to complete any gift on behalf of the principal.
9.6All powers described in this subdivision are exercisable equally with respect to a gift
9.7of any property in which the principal is interested at the giving of the power of attorney
9.8or becomes interested after that time, and whether located in the state of Minnesota or
9.9elsewhere.
9.10 Sec. 6. Minnesota Statutes 2012, section 523.24, subdivision 14, is amended to read:
9.11 Subd. 14. All other matters. In a statutory short form power of attorney, the
9.12language conferring general authority with respect to all other matters, means that the
9.13principal authorizes the attorney-in-fact to act as an alter ego of the principal with respect
9.14to any and all possible mattersand affairs affecting property owned by affecting the affairs
9.15of the principal which are not enumerated in subdivisions 1 to 13, and which the principal
9.16can do through an agent. The language conferring general authority does not include any
9.17powers to make medical decisions for the principal.
9.18 Sec. 7. [523.26] JUDICIAL RELIEF.
9.19The principal or any interested person, as defined in section 524.5-102, subdivision
9.207, may petition the court for a protective order directing the attorney(s)-in-fact to provide
9.21an accounting, on a schedule directed by the court, or for any other relief as provided in
9.22sections 524.5-401 to 524.5-502. The principal or a person named by the principal in the
9.23power of attorney to receive accountings is entitled to recover reasonable attorney fees
9.24and costs if the court finds that the attorney(s)-in-fact failed to render an accounting to the
9.25principal or any person named by the principal in the power of attorney form to receive
9.26accountings after the duty to render an accounting arose.
9.27 Sec. 8. EFFECTIVE DATE.
9.28Sections 1 to 6 are effective August 1, 2013, and apply to powers of attorney
9.29executed on or after January 1, 2014. Section 7 is effective August 1, 2013, and applies
9.30to powers of attorney executed before, on, or after that date. Nothing shall invalidate or
9.31impair any power of attorney executed before the effective date.
1.3authorizing certain judicial relief; modifying gift transaction amount; amending
1.4Minnesota Statutes 2012, sections 523.20; 523.23, subdivision 1, by adding
1.5subdivisions; 523.24, subdivisions 8, 14; proposing coding for new law in
1.6Minnesota Statutes, chapter 523.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 523.20, is amended to read:
1.9523.20 LIABILITY OF PARTIES REFUSING AUTHORITY OF
1.10ATTORNEY-IN-FACT TO ACT ON PRINCIPAL'S BEHALF.
1.11Any party refusing to accept the authority of an attorney-in-fact to exercise a power
1.12granted by a power of attorney which (1) is executed in conformity with section
1.13or a form prepared under section
1.14attorney-in-fact has read and understood the notice required under section 523.23,
1.15subdivision 1b, and a specimen signature of the attorney-in-fact authorized to act; (3) with
1.16regard to the execution or delivery of any recordable instrument relating to real property, is
1.17accompanied by affidavits that satisfy the provisions of section
1.18any other transaction, is signed by the attorney-in-fact in a manner conforming to section
1.20required by section
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
1.25power of attorney itself has expired; or (3) the party has actual knowledge of the death of
2.1the principal or, if the power of attorney is not a durable power of attorney, actual notice of
2.2a judicial determination that the principal is legally incompetent. This provision does not
2.3negate any liability which a party would have to the principal or to the attorney-in-fact
2.4under any other form of power of attorney under the common law or otherwise.
2.5 Sec. 2. Minnesota Statutes 2012, section 523.23, subdivision 1, is amended to read:
2.6 Subdivision 1. Form. The following form may be used to create a power of attorney,
2.7and, when used, it must be construed in accordance with sections
2.8form must include the notices required under subdivisions 1a and 1b:
2.10MINNESOTA STATUTES, SECTION
2.12
2.13
2.14
2.15
2.16
2.17
2.18Before completing and signing this form, the principal must read and initial the
2.19IMPORTANT NOTICE TO PRINCIPAL. Before acting on behalf of the principal, the
2.20attorney(s)-in-fact must sign this form acknowledging having read and understood the
2.21IMPORTANT NOTICE TO ATTORNEY(S)-IN-FACT.
| 2.23 |
.....
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| 2.24 |
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||
| 2.25 |
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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
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.)
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.)
4.12
4.13
4.14
4.19THIRD: My attorney(s)-in-fact MAY NOT make gifts to the attorney(s)-in-fact, or
4.20anyone the attorney(s)-in-fact are legally obligated to support, UNLESS I have made a
4.21check or an "x" on the line in front of the second statement below and I have written in the
4.22name(s) of the attorney(s)-in-fact. The second option allows you to limit the gifting power
4.23to only the attorney(s)-in-fact you name in the statement.
4.24Minnesota Statutes, section 523.24, subdivision 8, clause (2), limits the annual
4.25gift(s) made to my attorney(s)-in-fact, or to anyone the attorney(s)-in-fact are legally
4.26obligated to support, to an amount, in the aggregate, that does not exceed the federal
4.27annual gift tax exclusion amount in the year of the gift.
4.33FOURTH: (You may indicate below whether or not the attorney-in-fact is required
4.34to make an accounting. Make a check or "x" on the line in front of the statement that
4.35expresses your intent.)
| 4.36 4.37 |
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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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| 5.7 |
(Signature of Principal) |
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| 5.8 |
(Acknowledgment of Principal) |
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| 5.9 |
STATE OF MINNESOTA |
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| 5.10 |
) ss. |
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| 5.11 |
COUNTY OF |
) |
5.34 Sec. 3. Minnesota Statutes 2012, section 523.23, is amended by adding a subdivision
5.35to read:
5.36 Subd. 1a. Notice to principal. The following verbatim notice must be included as
5.37part of this statutory short form power of attorney:
6.2MINNESOTA STATUTES, SECTION 523.23
6.3IMPORTANT NOTICE TO THE PRINCIPAL
6.4READ THIS NOTICE CAREFULLY. The power of attorney form that you will be
6.5signing is a legal document. It is governed by Minnesota Statutes, chapter 523. If there is
6.6anything about this form that you do not understand, you should seek legal advice.
6.7PURPOSE: The purpose of the power of attorney is for you, the principal, to give
6.8broad and sweeping powers to your attorney(s)-in-fact, who is the person you designate to
6.9handle your financial affairs. Any action taken by your attorney(s)-in-fact pursuant to the
6.10powers you designate in this power of attorney form binds you, your heirs and assigns, and
6.11the representative of your estate in the same manner as though you took the action yourself.
6.12POWERS GIVEN: You will be granting the attorney(s)-in-fact power to enter into
6.13transactions relating to any of your real or personal property, even without your consent or
6.14any advance notice to you. The powers granted to the attorney(s)-in-fact are broad and
6.15not supervised. THIS POWER OF ATTORNEY DOES NOT GRANT ANY POWERS
6.16TO MAKE MEDICAL DECISIONS FOR YOU. TO GIVE SOMEONE THOSE
6.17POWERS, YOU MUST USE A HEALTH CARE DIRECTIVE THAT COMPLIES WITH
6.18MINNESOTA STATUTES, CHAPTER 145C.
6.19DUTIES OF YOUR ATTORNEY(S)-IN-FACT: Your attorney(s)-in-fact must
6.20keep complete records of all transactions entered into on your behalf. You may request
6.21that your attorney(s)-in-fact provide you or someone else that you designate a periodic
6.22accounting, which is a written statement that gives reasonable notice of all transactions
6.23entered into on your behalf. Your attorney(s)-in-fact must also render an accounting if the
6.24attorney(s)-in-fact reimburses himself or herself for any expenditure made on behalf of you.
6.25An attorney-in-fact is personally liable to any person, including you, who is injured
6.26by an action taken by the attorney-in-fact in bad faith under the power of attorney or by
6.27the failure of an attorney-in-fact to account when the attorney-in-fact has a duty to account
6.28under this section. The attorney(s)-in-fact must act with your interests utmost in mind.
6.29TERMINATION: If you choose, your attorney(s)-in-fact may exercise these powers
6.30throughout your lifetime, both before and after you become incapacitated. However, a
6.31court can take away the powers of your attorney(s)-in-fact because of improper acts.
6.32You may also revoke this power of attorney if you wish. This power of attorney is
6.33automatically terminated if the power is granted to your spouse and proceedings are
6.34commenced for dissolution, legal separation, or annulment of your marriage.
6.35This power of attorney authorizes, but does not require, the attorney(s)-in-fact to
6.36act for you. You are not required to sign this power of attorney, but it will not take effect
7.1without your signature. You should not sign this power of attorney if you do not understand
7.2everything in it, and what your attorney(s)-in-fact will be able to do if you do sign it.
7.3Please place your initials on the following line indicating you have read this
7.4IMPORTANT NOTICE TO THE PRINCIPAL: .......
7.5 Sec. 4. Minnesota Statutes 2012, section 523.23, is amended by adding a subdivision
7.6to read:
7.7 Subd. 1b. Notice to attorney(s)-in-fact. The following verbatim notice must be
7.8included as a part of this statutory short form power of attorney:
7.10MINNESOTA STATUTES, SECTION 523.23
7.11IMPORTANT NOTICE TO THE ATTORNEY(S)-IN-FACT
7.12(This notice is incorporated by reference and is included as part of the statutory short
7.13form power of attorney.)
7.14You have been nominated by the principal to act as attorney-in-fact. You are under
7.15no duty to exercise the authority granted by the power of attorney. However, when you do
7.16exercise any power conferred by the power of attorney, you must:
7.17(1) act with the interests of the principal utmost in mind;
7.18(2) exercise the power in the same manner as an ordinarily prudent person of
7.19discretion and intelligence would exercise in the management of the person's own affairs;
7.20(3) render accountings as directed by the principal or whenever you reimburse
7.21yourself for expenditures made on behalf of the principal;
7.22(4) act in good faith for the best interests of the principal, using due care,
7.23competence, and diligence;
7.24(5) cease acting on behalf of the principal if you learn of any event that terminates
7.25this power of attorney or terminates your authority under this power of attorney, such
7.26as revocation by the principal of the power of attorney, the death of the principal, or
7.27the commencement of proceedings for dissolution, separation, or annulment of your
7.28marriage to the principal;
7.29(6) disclose your identity as an attorney-in-fact whenever you act for the principal
7.30by signing in substantially the following manner:
7.31Signature by a person as "attorney-in-fact for (name of the principal)" or "(name of
7.32the principal) by (name of the attorney-in-fact) the principal's attorney-in-fact"
7.33(7) acknowledge you have read and understood this IMPORTANT NOTICE TO
7.34THE ATTORNEY(S)-IN-FACT by signing the power of attorney form.
8.1You are personally liable to any person, including the principal, who is injured by
8.2an action taken by you in bad faith under the power of attorney or by your failure to
8.3account when the duty to account has arisen.
8.4The meaning of the powers granted to you is contained in Minnesota Statutes,
8.5chapter 523. If there is anything about this document or your duties that you do not
8.6understand, you should seek legal advice from an attorney.
8.7 Sec. 5. Minnesota Statutes 2012, section 523.24, subdivision 8, is amended to read:
8.8 Subd. 8. Gift transactions. In the statutory short form power of attorney, the
8.9language conferring general authority with respect to gift transactions, means that the
8.10principal authorizes the attorney-in-fact:
8.11(1) to make gifts to organizations, whether charitable or otherwise, to which the
8.12principal has made gifts, and to satisfy pledges made to organizations by the principal;
8.13(2) to make gifts on behalf of the principal to the principal's spouse, children, and
8.14other descendants or the spouse of any child or other descendant, and, if authorized by
8.15the principal in part Third, to the attorney-in-fact, either outright or in trust, for purposes
8.16which the attorney-in-fact deems to be in the best interest of the principal, specifically
8.17including minimization of income, estate, inheritance, or gift taxes, provided that,
8.18notwithstanding that the principal in part Third may have authorized the attorney-in-fact
8.19to transfer the principal's property to the attorney-in-fact, no attorney-in-fact nor anyone
8.20the attorney-in-fact has a legal obligation to support may be the recipient of any gifts in
8.21any one calendar year which, in the aggregate, exceed
8.22gift tax exclusion amount in the year of the gift
8.23(3) to prepare, execute, consent to on behalf of the principal, and file any return,
8.24report, declaration, or other document required by the laws of the United States, any state
8.25or subdivision of a state, or any foreign government, which the attorney-in-fact deems to be
8.26desirable or necessary with respect to any gift made under the authority of this subdivision;
8.27(4) to execute, acknowledge, seal, and deliver any deed, assignment, agreement,
8.28authorization, check, or other instrument which the attorney-in-fact deems useful for the
8.29accomplishment of any of the purposes enumerated in this subdivision;
8.30(5) to prosecute, defend, submit to arbitration, settle, and propose or accept a
8.31compromise with respect to any claim existing in favor of or against the principal based
8.32on or involving any gift transaction or to intervene in any related action or proceeding;
8.33(6) to hire, discharge, and compensate any attorney, accountant, expert witness, or
8.34other assistant when the attorney-in-fact deems that action to be desirable for the proper
9.1execution by the attorney-in-fact of any of the powers described in this subdivision, and
9.2for the keeping of needed records; and
9.3(7) in general, and in addition to but not in contravention of all the specific acts
9.4listed in this subdivision, to do any other acts which the attorney-in-fact deems desirable
9.5or necessary to complete any gift on behalf of the principal.
9.6All powers described in this subdivision are exercisable equally with respect to a gift
9.7of any property in which the principal is interested at the giving of the power of attorney
9.8or becomes interested after that time, and whether located in the state of Minnesota or
9.9elsewhere.
9.10 Sec. 6. Minnesota Statutes 2012, section 523.24, subdivision 14, is amended to read:
9.11 Subd. 14. All other matters. In a statutory short form power of attorney, the
9.12language conferring general authority with respect to all other matters, means that the
9.13principal authorizes the attorney-in-fact to act as an alter ego of the principal with respect
9.14to any and all possible matters
9.15of the principal which are not enumerated in subdivisions 1 to 13, and which the principal
9.16can do through an agent. The language conferring general authority does not include any
9.17powers to make medical decisions for the principal.
9.18 Sec. 7. [523.26] JUDICIAL RELIEF.
9.19The principal or any interested person, as defined in section 524.5-102, subdivision
9.207, may petition the court for a protective order directing the attorney(s)-in-fact to provide
9.21an accounting, on a schedule directed by the court, or for any other relief as provided in
9.22sections 524.5-401 to 524.5-502. The principal or a person named by the principal in the
9.23power of attorney to receive accountings is entitled to recover reasonable attorney fees
9.24and costs if the court finds that the attorney(s)-in-fact failed to render an accounting to the
9.25principal or any person named by the principal in the power of attorney form to receive
9.26accountings after the duty to render an accounting arose.
9.27 Sec. 8. EFFECTIVE DATE.
9.28Sections 1 to 6 are effective August 1, 2013, and apply to powers of attorney
9.29executed on or after January 1, 2014. Section 7 is effective August 1, 2013, and applies
9.30to powers of attorney executed before, on, or after that date. Nothing shall invalidate or
9.31impair any power of attorney executed before the effective date.
