Bill Text: MN SF327 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Power of attorney statutory short form modification; judicial relief authorization
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2013-04-16 - HF substituted on General Orders HF232 [SF327 Detail]
Download: Minnesota-2013-SF327-Engrossed.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, by adding subdivisions; 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:
1.8523.20 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
1.12or a form prepared under section523.231 ; (2) contains an acknowledgement that the
1.13attorney-in-fact has read and understood the notice required under section 523.23,
1.14subdivision 1b, and a specimen signature of the attorney-in-fact authorized to act; (3) with
1.15regard to the execution or delivery of any recordable instrument relating to real property, is
1.16accompanied by affidavits that satisfy the provisions of section523.17 ; (4) with regard to
1.17any other transaction, is signed by the attorney-in-fact in a manner conforming to section
1.18523.18
; and (5) when applicable, is accompanied by an affidavit and any other document
1.19required by section523.16 , is liable to the principal and to the principal's heirs, assigns,
1.20and representative of the estate of the principal in the same manner as the party would be
1.21liable had the party refused to accept the authority of the principal to act on the principal's
1.22own behalf unless: (1) the party has actual notice of the revocation of the power of attorney
1.23prior to the exercise of the power; (2) the duration of the power of attorney specified in the
1.24power 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 . If
2.8this form is used to create a power of attorney, the notices contained in subdivisions 1a
2.9and 1b must be incorporated by reference and included as part of the form:
2.11MINNESOTA STATUTES, SECTION523.23
2.12IMPORTANT NOTICE: The powers granted by this document are broad and
2.13sweeping. They are defined in Minnesota Statutes, section
523.24. If you have any
2.14questions about these powers, obtain competent advice. This power of attorney may be
2.15revoked by you if you wish to do so. This power of attorney is automatically terminated
2.16if it is to your spouse and proceedings are commenced for dissolution, legal separation,
2.17or annulment of your marriage. This power of attorney authorizes, but does not require,
2.18the attorney-in-fact to act for you.
2.19Before completing and signing this form, the principal must read and initial the
2.20IMPORTANT NOTICE TO PRINCIPAL. Before acting on behalf of the principal, the
2.21attorney(s)-in-fact must sign this form acknowledging having read and understood the
2.22IMPORTANT NOTICE TO ATTORNEY(S)-IN-FACT.
3.13I, (the above-named Principal) hereby appoint the above named Attorney(s)-in-Fact to act
3.14as my attorney(s)-in-fact:
3.15FIRST: To act for me in any way that I could act with respect to the following
3.16matters, as each of them is defined in Minnesota Statutes, section523.24 :
3.17(To grant to the attorney-in-fact any of the following powers, make a check or "x" on
3.18the line in front of each power being granted. You may, but need not, cross out each power
3.19not granted. Failure to make a check or "x" on the line in front of the power will have the
3.20effect of deleting the power unless the line in front of the power of (N) is checked or x-ed.)
4.4SECOND: (You must indicate below whether or not this power of attorney will be
4.5effective if you become incapacitated or incompetent. Make a check or "x" on the line in
4.6front of the statement that expresses your intent.)
4.11THIRD: (You must indicate below whether or not this power of attorney authorizes
4.12the attorney-in-fact to transfer your property to the attorney-in-fact. Make a check or "x"
4.13on the line in front of the statement that expresses your intent.)
4.18THIRD: My attorney-in-fact MAY NOT make gifts to the attorney-in-fact, or
4.19to anyone the attorney-in-fact is legally obligated to support, UNLESS I have initialed
4.20below and written in the name(s) of the attorney(s)-in-fact. Minnesota Statutes, section
4.21523.24, subdivision 8, clause (2), limits the annual gift(s) made to my attorney-in-fact,
4.22or to anyone the attorney-in-fact has a legal obligation to support, to an amount not to
4.23exceed, in the aggregate, the applicable federal annual gift exclusion.
4.30FOURTH: (You may indicate below whether or not the attorney-in-fact is required
4.31to make an accounting. Make a check or "x" on the line in front of the statement that
4.32expresses your intent.)
5.1In Witness Whereof I have hereunto signed my name this
.....
day of
.....
,
.....
5.30 Sec. 3. Minnesota Statutes 2012, section 523.23, is amended by adding a subdivision
5.31to read:
5.32 Subd. 1a. Notice to principal. The following verbatim notice must be included as
5.33part of this statutory short form power of attorney:
5.35MINNESOTA STATUTES, SECTION 523.23
5.36IMPORTANT NOTICE TO THE PRINCIPAL
5.37(This notice is incorporated by reference and is included as a part of this statutory
5.38short form power of attorney.)
6.1READ THIS NOTICE CAREFULLY. The power of attorney form that you will be
6.2signing is a legal document. It is governed by Minnesota Statutes, chapter 523. If there is
6.3anything about this form that you do not understand, you should seek legal advice.
6.4PURPOSE: The purpose of the power of attorney is for you, the principal, to give
6.5broad and sweeping powers to your attorney(s)-in-fact, who is the person or authorized
6.6corporation you designate to handle your financial affairs. Any action taken by your
6.7attorney(s)-in-fact pursuant to the powers you designate to them in the power of attorney
6.8form binds you, your heirs and assigns, and the representative of your estate in the same
6.9manner as though you took the action yourself.
6.10POWERS GIVEN: You will be granting the attorney(s)-in-fact power to enter into
6.11transactions relating to any of your real or personal property, even without your consent or
6.12any advance notice to you. The powers granted to the attorney(s)-in-fact are broad and
6.13not supervised. This power of attorney does not grant any of the powers designated by a
6.14health care directive which are governed by Minnesota Statutes, chapter 145C.
6.15DUTIES OF YOUR ATTORNEY(S)-IN-FACT: Your attorney(s)-in-fact must keep
6.16complete records of all transactions entered into on your behalf. You may request that your
6.17attorney(s)-in-fact provide you or someone else that you designate a periodic accounting,
6.18which is a written statement that gives reasonable notice of all transactions entered into on
6.19your behalf. Your attorney(s)-in-fact must also render an accounting if the attorney-in-fact
6.20reimburses himself or herself for any expenditure they made on behalf of you.
6.21An attorney-in-fact is personally liable to any person, including you, who is injured
6.22by an action taken by the attorney-in-fact in bad faith under the power of attorney or by
6.23the attorney-in-fact's failure to account when the attorney-in-fact has a duty to account
6.24under this section. The attorney-in-fact must act with your interest utmost in mind.
6.25TERMINATION: If you choose, your attorney(s)-in-fact may exercise these powers
6.26throughout your lifetime, both before and after you become incapacitated. However, a
6.27court can take away the powers of your attorney(s)-in-fact because of improper acts.
6.28You may also revoke this power of attorney if you wish. This power of attorney is
6.29automatically terminated if the power is granted to your spouse and proceedings are
6.30commenced for dissolution, legal separation, or annulment of your marriage.
6.31This power of attorney authorizes, but does not require, the attorney(s)-in-fact to
6.32act for you. You are not required to sign this power of attorney, but it will not take effect
6.33without your signature. You should not sign this power of attorney if you do not understand
6.34everything in it, and what your attorney(s)-in-fact will be able to do if you do sign it.
6.35Please place your initials on the following line indicating you have read this
6.36IMPORTANT NOTICE TO THE PRINCIPAL: .......
7.1 Sec. 4. Minnesota Statutes 2012, section 523.23, is amended by adding a subdivision
7.2to read:
7.3 Subd. 1b. Notice to attorney(s)-in-fact. The following verbatim notice must be
7.4included as a part of this statutory short form power of attorney:
7.6MINNESOTA STATUTES, SECTION 523.23
7.7IMPORTANT NOTICE TO THE ATTORNEY(S)-IN-FACT
7.8(This notice is incorporated by reference and is included as part of the statutory short
7.9form power of attorney.)
7.10You have been nominated by the principal to act as attorney-in-fact. You are under
7.11no duty to exercise the authority granted by the power of attorney. However, when you do
7.12exercise any power conferred by the power of attorney, you must:
7.13(1) act with the interests of the principal utmost in mind;
7.14(2) exercise the power in the same manner as an ordinarily prudent person of
7.15discretion and intelligence would exercise in the management of the person's own affairs;
7.16(3) render accountings as directed by the principal or whenever you reimburse
7.17yourself for expenditures made on behalf of the principal;
7.18(4) act in good faith for the best interest of the principal, using due care, competence,
7.19and diligence;
7.20(5) cease acting on behalf of the principal if you learn of any event that terminates
7.21this power of attorney or your authority under this power of attorney, such as revocation by
7.22the principal of the power of attorney, the death of the principal, or the commencement of
7.23proceedings for a dissolution, separation, or annulment of your marriage to the principal;
7.24(6) disclose your identity as an attorney-in-fact whenever you act for the principal
7.25by signing in substantially the following manner:
7.26Signature by a person as "attorney-in-fact for (name of the principal)" or "(name of
7.27the principal) by (name of the attorney-in-fact) the principal's attorney-in-fact";
7.28(7) acknowledge you have read and understood this IMPORTANT NOTICE TO
7.29THE ATTORNEY(S)-IN-FACT by signing the power of attorney form.
7.30You are personally liable to any person, including the principal, who is injured by
7.31an action taken by you in bad faith under the power of attorney or by your failure to
7.32account when the duty to account has arisen.
7.33The meaning of the powers granted to you is contained in Minnesota Statutes,
7.34chapter 523. If there is anything about this document or your duties that you do not
7.35understand, you should seek legal advice from an attorney.
7.36 Sec. 5. Minnesota Statutes 2012, section 523.24, subdivision 8, is amended to read:
8.1 Subd. 8. Gift transactions. In the statutory short form power of attorney, the
8.2language conferring general authority with respect to gift transactions, means that the
8.3principal authorizes the attorney-in-fact:
8.4(1) to make gifts to organizations, whether charitable or otherwise, to which the
8.5principal has made gifts, and to satisfy pledges made to organizations by the principal;
8.6(2) to make gifts on behalf of the principal to the principal's spouse, children, and
8.7other descendants or the spouse of any child or other descendant, and, if authorized by
8.8the principal in part Third, to the attorney-in-fact, either outright or in trust, for purposes
8.9which the attorney-in-fact deems to be in the best interest of the principal, specifically
8.10including minimization of income, estate, inheritance, or gift taxes, provided that,
8.11notwithstanding that the principal in part Third may have authorized the attorney-in-fact to
8.12transfer the principal's property to the attorney-in-fact, no attorney-in-fact nor anyone the
8.13attorney-in-fact has a legal obligation to support may be the recipient of any gifts in any
8.14one calendar year which, in the aggregate, exceed$10,000 in value the then applicable
8.15federal annual gift exclusion amount to each recipient;
8.16(3) to prepare, execute, consent to on behalf of the principal, and file any return,
8.17report, declaration, or other document required by the laws of the United States, any state
8.18or subdivision of a state, or any foreign government, which the attorney-in-fact deems to be
8.19desirable or necessary with respect to any gift made under the authority of this subdivision;
8.20(4) to execute, acknowledge, seal, and deliver any deed, assignment, agreement,
8.21authorization, check, or other instrument which the attorney-in-fact deems useful for the
8.22accomplishment of any of the purposes enumerated in this subdivision;
8.23(5) to prosecute, defend, submit to arbitration, settle, and propose or accept a
8.24compromise with respect to any claim existing in favor of or against the principal based
8.25on or involving any gift transaction or to intervene in any related action or proceeding;
8.26(6) to hire, discharge, and compensate any attorney, accountant, expert witness, or
8.27other assistant when the attorney-in-fact deems that action to be desirable for the proper
8.28execution by the attorney-in-fact of any of the powers described in this subdivision, and
8.29for the keeping of needed records; and
8.30(7) in general, and in addition to but not in contravention of all the specific acts
8.31listed in this subdivision, to do any other acts which the attorney-in-fact deems desirable
8.32or necessary to complete any gift on behalf of the principal.
8.33All powers described in this subdivision are exercisable equally with respect to a gift
8.34of any property in which the principal is interested at the giving of the power of attorney
8.35or becomes interested after that time, and whether located in the state of Minnesota or
8.36elsewhere.
9.1 Sec. 6. Minnesota Statutes 2012, section 523.24, subdivision 14, is amended to read:
9.2 Subd. 14. All other financial matters. In a statutory short form power of attorney,
9.3the language conferring general authority with respect to all other matters, means that
9.4the principal authorizes the attorney-in-fact to act as an alter ego of the principal with
9.5respect to any and all possible mattersand affairs affecting property owned by affecting
9.6the financial affairs of the principal which are not enumerated in subdivisions 1 to 13, and
9.7which the principal can do through an agent.
9.8 Sec. 7. [523.26] JUDICIAL RELIEF.
9.9The principal or any interested person, as defined in section 524.5-102, subdivision
9.107, may petition the court for a protective order directing the attorney-in-fact to provide
9.11an accounting, on a schedule directed by the court, or for any other relief as provided in
9.12sections 524.5-401 to 524.5-502. The principal or a person named by the principal in the
9.13power of attorney to receive accountings is entitled to recover reasonable attorney fees
9.14and costs if the court finds that the attorney-in-fact failed to render an accounting to the
9.15principal or any person named by the principal in the power of attorney form to receive
9.16accountings after the principal had requested an accounting.
9.17 Sec. 8. EFFECTIVE DATE.
9.18Sections 1 to 6 are effective August 1, 2013, and apply to powers of attorney
9.19executed on or after January 1, 2014. Section 7 is effective August 1, 2013, and applies to
9.20powers of attorney executed before, on, or after the effective date.
1.3authorizing certain judicial relief; amending Minnesota Statutes 2012, sections
1.4523.20; 523.23, subdivision 1, by adding subdivisions; 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:
1.8523.20 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
1.12or a form prepared under section
1.13attorney-in-fact has read and understood the notice required under section 523.23,
1.14subdivision 1b, and a specimen signature of the attorney-in-fact authorized to act; (3) with
1.15regard to the execution or delivery of any recordable instrument relating to real property, is
1.16accompanied by affidavits that satisfy the provisions of section
1.17any other transaction, is signed by the attorney-in-fact in a manner conforming to section
1.19required by section
1.20and representative of the estate of the principal in the same manner as the party would be
1.21liable had the party refused to accept the authority of the principal to act on the principal's
1.22own behalf unless: (1) the party has actual notice of the revocation of the power of attorney
1.23prior to the exercise of the power; (2) the duration of the power of attorney specified in the
1.24power 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
2.8this form is used to create a power of attorney, the notices contained in subdivisions 1a
2.9and 1b must be incorporated by reference and included as part of the form:
2.11MINNESOTA STATUTES, SECTION
2.13
2.14
2.15
2.16
2.17
2.18
2.19Before completing and signing this form, the principal must read and initial the
2.20IMPORTANT NOTICE TO PRINCIPAL. Before acting on behalf of the principal, the
2.21attorney(s)-in-fact must sign this form acknowledging having read and understood the
2.22IMPORTANT NOTICE TO ATTORNEY(S)-IN-FACT.
| 2.24 |
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| 2.25 |
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| 2.26 |
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3.14as my attorney(s)-in-fact:
3.15FIRST: To act for me in any way that I could act with respect to the following
3.16matters, as each of them is defined in Minnesota Statutes, section
3.17(To grant to the attorney-in-fact any of the following powers, make a check or "x" on
3.18the line in front of each power being granted. You may, but need not, cross out each power
3.19not granted. Failure to make a check or "x" on the line in front of the power will have the
3.20effect of deleting the power unless the line in front of the power of (N) is checked or x-ed.)
4.4SECOND: (You must indicate below whether or not this power of attorney will be
4.5effective if you become incapacitated or incompetent. Make a check or "x" on the line in
4.6front of the statement that expresses your intent.)
4.11
4.12
4.13
4.18THIRD: My attorney-in-fact MAY NOT make gifts to the attorney-in-fact, or
4.19to anyone the attorney-in-fact is legally obligated to support, UNLESS I have initialed
4.20below and written in the name(s) of the attorney(s)-in-fact. Minnesota Statutes, section
4.21523.24, subdivision 8, clause (2), limits the annual gift(s) made to my attorney-in-fact,
4.22or to anyone the attorney-in-fact has a legal obligation to support, to an amount not to
4.23exceed, in the aggregate, the applicable federal annual gift exclusion.
4.30FOURTH: (You may indicate below whether or not the attorney-in-fact is required
4.31to make an accounting. Make a check or "x" on the line in front of the statement that
4.32expresses your intent.)
| 4.33 4.34 |
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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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| 5.2 |
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| 5.3 |
(Signature of Principal) |
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| 5.4 |
(Acknowledgment of Principal) |
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| 5.5 |
STATE OF MINNESOTA |
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| 5.6 |
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| 5.7 |
COUNTY OF |
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5.30 Sec. 3. Minnesota Statutes 2012, section 523.23, is amended by adding a subdivision
5.31to read:
5.32 Subd. 1a. Notice to principal. The following verbatim notice must be included as
5.33part of this statutory short form power of attorney:
5.35MINNESOTA STATUTES, SECTION 523.23
5.36IMPORTANT NOTICE TO THE PRINCIPAL
5.37(This notice is incorporated by reference and is included as a part of this statutory
5.38short form power of attorney.)
6.1READ THIS NOTICE CAREFULLY. The power of attorney form that you will be
6.2signing is a legal document. It is governed by Minnesota Statutes, chapter 523. If there is
6.3anything about this form that you do not understand, you should seek legal advice.
6.4PURPOSE: The purpose of the power of attorney is for you, the principal, to give
6.5broad and sweeping powers to your attorney(s)-in-fact, who is the person or authorized
6.6corporation you designate to handle your financial affairs. Any action taken by your
6.7attorney(s)-in-fact pursuant to the powers you designate to them in the power of attorney
6.8form binds you, your heirs and assigns, and the representative of your estate in the same
6.9manner as though you took the action yourself.
6.10POWERS GIVEN: You will be granting the attorney(s)-in-fact power to enter into
6.11transactions relating to any of your real or personal property, even without your consent or
6.12any advance notice to you. The powers granted to the attorney(s)-in-fact are broad and
6.13not supervised. This power of attorney does not grant any of the powers designated by a
6.14health care directive which are governed by Minnesota Statutes, chapter 145C.
6.15DUTIES OF YOUR ATTORNEY(S)-IN-FACT: Your attorney(s)-in-fact must keep
6.16complete records of all transactions entered into on your behalf. You may request that your
6.17attorney(s)-in-fact provide you or someone else that you designate a periodic accounting,
6.18which is a written statement that gives reasonable notice of all transactions entered into on
6.19your behalf. Your attorney(s)-in-fact must also render an accounting if the attorney-in-fact
6.20reimburses himself or herself for any expenditure they made on behalf of you.
6.21An attorney-in-fact is personally liable to any person, including you, who is injured
6.22by an action taken by the attorney-in-fact in bad faith under the power of attorney or by
6.23the attorney-in-fact's failure to account when the attorney-in-fact has a duty to account
6.24under this section. The attorney-in-fact must act with your interest utmost in mind.
6.25TERMINATION: If you choose, your attorney(s)-in-fact may exercise these powers
6.26throughout your lifetime, both before and after you become incapacitated. However, a
6.27court can take away the powers of your attorney(s)-in-fact because of improper acts.
6.28You may also revoke this power of attorney if you wish. This power of attorney is
6.29automatically terminated if the power is granted to your spouse and proceedings are
6.30commenced for dissolution, legal separation, or annulment of your marriage.
6.31This power of attorney authorizes, but does not require, the attorney(s)-in-fact to
6.32act for you. You are not required to sign this power of attorney, but it will not take effect
6.33without your signature. You should not sign this power of attorney if you do not understand
6.34everything in it, and what your attorney(s)-in-fact will be able to do if you do sign it.
6.35Please place your initials on the following line indicating you have read this
6.36IMPORTANT NOTICE TO THE PRINCIPAL: .......
7.1 Sec. 4. Minnesota Statutes 2012, section 523.23, is amended by adding a subdivision
7.2to read:
7.3 Subd. 1b. Notice to attorney(s)-in-fact. The following verbatim notice must be
7.4included as a part of this statutory short form power of attorney:
7.6MINNESOTA STATUTES, SECTION 523.23
7.7IMPORTANT NOTICE TO THE ATTORNEY(S)-IN-FACT
7.8(This notice is incorporated by reference and is included as part of the statutory short
7.9form power of attorney.)
7.10You have been nominated by the principal to act as attorney-in-fact. You are under
7.11no duty to exercise the authority granted by the power of attorney. However, when you do
7.12exercise any power conferred by the power of attorney, you must:
7.13(1) act with the interests of the principal utmost in mind;
7.14(2) exercise the power in the same manner as an ordinarily prudent person of
7.15discretion and intelligence would exercise in the management of the person's own affairs;
7.16(3) render accountings as directed by the principal or whenever you reimburse
7.17yourself for expenditures made on behalf of the principal;
7.18(4) act in good faith for the best interest of the principal, using due care, competence,
7.19and diligence;
7.20(5) cease acting on behalf of the principal if you learn of any event that terminates
7.21this power of attorney or your authority under this power of attorney, such as revocation by
7.22the principal of the power of attorney, the death of the principal, or the commencement of
7.23proceedings for a dissolution, separation, or annulment of your marriage to the principal;
7.24(6) disclose your identity as an attorney-in-fact whenever you act for the principal
7.25by signing in substantially the following manner:
7.26Signature by a person as "attorney-in-fact for (name of the principal)" or "(name of
7.27the principal) by (name of the attorney-in-fact) the principal's attorney-in-fact";
7.28(7) acknowledge you have read and understood this IMPORTANT NOTICE TO
7.29THE ATTORNEY(S)-IN-FACT by signing the power of attorney form.
7.30You are personally liable to any person, including the principal, who is injured by
7.31an action taken by you in bad faith under the power of attorney or by your failure to
7.32account when the duty to account has arisen.
7.33The meaning of the powers granted to you is contained in Minnesota Statutes,
7.34chapter 523. If there is anything about this document or your duties that you do not
7.35understand, you should seek legal advice from an attorney.
7.36 Sec. 5. Minnesota Statutes 2012, section 523.24, subdivision 8, is amended to read:
8.1 Subd. 8. Gift transactions. In the statutory short form power of attorney, the
8.2language conferring general authority with respect to gift transactions, means that the
8.3principal authorizes the attorney-in-fact:
8.4(1) to make gifts to organizations, whether charitable or otherwise, to which the
8.5principal has made gifts, and to satisfy pledges made to organizations by the principal;
8.6(2) to make gifts on behalf of the principal to the principal's spouse, children, and
8.7other descendants or the spouse of any child or other descendant, and, if authorized by
8.8the principal in part Third, to the attorney-in-fact, either outright or in trust, for purposes
8.9which the attorney-in-fact deems to be in the best interest of the principal, specifically
8.10including minimization of income, estate, inheritance, or gift taxes, provided that,
8.11notwithstanding that the principal in part Third may have authorized the attorney-in-fact to
8.12transfer the principal's property to the attorney-in-fact, no attorney-in-fact nor anyone the
8.13attorney-in-fact has a legal obligation to support may be the recipient of any gifts in any
8.14one calendar year which, in the aggregate, exceed
8.15federal annual gift exclusion amount to each recipient;
8.16(3) to prepare, execute, consent to on behalf of the principal, and file any return,
8.17report, declaration, or other document required by the laws of the United States, any state
8.18or subdivision of a state, or any foreign government, which the attorney-in-fact deems to be
8.19desirable or necessary with respect to any gift made under the authority of this subdivision;
8.20(4) to execute, acknowledge, seal, and deliver any deed, assignment, agreement,
8.21authorization, check, or other instrument which the attorney-in-fact deems useful for the
8.22accomplishment of any of the purposes enumerated in this subdivision;
8.23(5) to prosecute, defend, submit to arbitration, settle, and propose or accept a
8.24compromise with respect to any claim existing in favor of or against the principal based
8.25on or involving any gift transaction or to intervene in any related action or proceeding;
8.26(6) to hire, discharge, and compensate any attorney, accountant, expert witness, or
8.27other assistant when the attorney-in-fact deems that action to be desirable for the proper
8.28execution by the attorney-in-fact of any of the powers described in this subdivision, and
8.29for the keeping of needed records; and
8.30(7) in general, and in addition to but not in contravention of all the specific acts
8.31listed in this subdivision, to do any other acts which the attorney-in-fact deems desirable
8.32or necessary to complete any gift on behalf of the principal.
8.33All powers described in this subdivision are exercisable equally with respect to a gift
8.34of any property in which the principal is interested at the giving of the power of attorney
8.35or becomes interested after that time, and whether located in the state of Minnesota or
8.36elsewhere.
9.1 Sec. 6. Minnesota Statutes 2012, section 523.24, subdivision 14, is amended to read:
9.2 Subd. 14. All other financial matters. In a statutory short form power of attorney,
9.3the language conferring general authority with respect to all other matters, means that
9.4the principal authorizes the attorney-in-fact to act as an alter ego of the principal with
9.5respect to any and all possible matters
9.6the financial affairs of the principal which are not enumerated in subdivisions 1 to 13, and
9.7which the principal can do through an agent.
9.8 Sec. 7. [523.26] JUDICIAL RELIEF.
9.9The principal or any interested person, as defined in section 524.5-102, subdivision
9.107, may petition the court for a protective order directing the attorney-in-fact to provide
9.11an accounting, on a schedule directed by the court, or for any other relief as provided in
9.12sections 524.5-401 to 524.5-502. The principal or a person named by the principal in the
9.13power of attorney to receive accountings is entitled to recover reasonable attorney fees
9.14and costs if the court finds that the attorney-in-fact failed to render an accounting to the
9.15principal or any person named by the principal in the power of attorney form to receive
9.16accountings after the principal had requested an accounting.
9.17 Sec. 8. EFFECTIVE DATE.
9.18Sections 1 to 6 are effective August 1, 2013, and apply to powers of attorney
9.19executed on or after January 1, 2014. Section 7 is effective August 1, 2013, and applies to
9.20powers of attorney executed before, on, or after the effective date.
