Probate & Trust Law Section Conference Manual ... - Minnesota CLE

Acknowledgment in order to benefit from the provisions regarding liability for refusal to accept
the authority of the attorney-in-fact.
2. Section 523.23 Statutory Short Form Power of General POA; Formal Requirements; Joint
Agents
Subdivision 1 of this Section contains the SSF POA form, which is reviewed in Part D below.
A new subdivision 6 provides the effective date (January 1, 2014) for amendments to the form.
In addition, this subdivision clarifies that powers of attorney executed before January 1, 2014
remain valid.
3. Section 523.24 Construction
Subdivision 8(2) (gift transactions) is revised so that the limitation on gifts by the attorney-infact
to himself or to anyone he has a legal obligation to support is tied to the federal annual gift
exclusion in the year of the gift ($14,000 in the year 2013). The prior law was $10,000. (Note:
this change is effective only for SSF POAs executed on or after January 1, 2014).
Subdivision 14 (all other matters) is revised to clarify that “all other matters” relates to
financial matters and does not encompass health care decisions.
4. Section 523.26 Judicial Relief
This is a new provision under Chapter 523, and is effective August 1, 2013 for all powers of
attorney executed on any date. This provision does not create a new cause of action but rather
reinforces the use of protective proceedings (under 524.5-401 – 524.5-502) to order attorneys-infact
to account or to order any other relief. Protective orders have always been available, but
underutilized, to remedy issues related to powers of attorney. The presenters encourage all
practitioners to familiarize themselves with the provisions of 524.5-401 through 524.5-502 for
applicability to situations where an attorney-in-fact fails to account when required and/or when
there is reason to believe that the attorney-in-fact has intentionally or unintentionally misused his
authority. In many situations, a conservatorship is unnecessary and not desired by the parties.
This new section entitles the principal (or any other person designated in the SSF POA by the
principal to receive accountings) to recover reasonable attorney’s fees and costs if the court finds
that the attorney-in-fact failed to render an accounting “after the duty to render an accounting
arose.” No new obligation to account has been created. Attorneys-in-fact have always been
required to account to the principal whenever requested, or as otherwise provided at the Fourth
part of the SSF POA form or as required under the law.
D. Changes to the SSF POA form
5. The SSF POA form has always required principals to specify whether multiple attorneysin-fact
may act independently or must act jointly. The new law makes a slight change to
the NOTICE (generally on page one of the SSF POA form) which now states: If more
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