PRINTER'S NO.  1970

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

1358

Session of

2010

  

  

INTRODUCED BY GREENLEAF, TARTAGLIONE, ALLOWAY, O'PAKE, BAKER AND WASHINGTON, MAY 7, 2010

  

  

REFERRED TO JUDICIARY, MAY 7, 2010  

  

  

  

AN ACT

  

1

Amending Title 20 (Decedents, Estates and Fiduciaries) of the

2

Pennsylvania Consolidated Statutes, in health care, further

3

providing for definitions, for authority of health care agent

4

and for relation of health care agent to court-appointed

5

guardian and other agents; in powers of attorney, further

6

providing for general provisions, for special rules for

7

gifts, for form of power of attorney, for implementation of

8

power of attorney, for durable powers of attorney and for

9

account; and providing for investigation of financial abuse

10

and mismanagement, for jurisdiction and venue and for

11

principles of law and equity.

12

The General Assembly of the Commonwealth of Pennsylvania

13

hereby enacts as follows:

14

Section 1.  The definition of "health care decision" in

15

section 5422 of Title 20 of the Pennsylvania Consolidated

16

Statutes is amended to read:

17

§ 5422.  Definitions.

18

The following words and phrases when used in this chapter

19

shall have the meanings given to them in this section unless the

20

context clearly indicates otherwise:

21

* * *

22

"Health care decision."  A decision regarding an individual's

 


1

health care, including, but not limited to, the following:

2

(1)  Selection and discharge of a health care provider.

3

(2)  Approval or disapproval of a diagnostic test,

4

surgical procedure or program of medication.

5

(3)  Directions to initiate, continue, withhold or

6

withdraw all forms of life-sustaining treatment, including

7

instructions not to resuscitate.

8

(4)  Admission to a medical, nursing, residential or

9

similar facility or entering into agreements for the

10

individual's care.

11

(5)  After the death of the individual, making anatomical

12

gifts, disposing of the remains or consenting to autopsies.

13

* * *

14

Section 2.  Sections 5456(a) and 5460(a) of Title 20 are

15

amended to read:

16

§ 5456.  Authority of health care agent.

17

(a)  Extent of authority.--Except as expressly provided

18

otherwise in a health care power of attorney and subject to

19

subsection (b) and section 5460 (relating to relation of health

20

care agent to court-appointed guardian and other agents), a

21

health care agent shall have the authority to make any health

22

care decision and to exercise any right and power regarding the

23

principal's care, custody and health care treatment that the

24

principal could have made and exercised. The foregoing power

25

shall include the power to authorize admission to a medical,

26

nursing, residential or similar facility, or to enter into

27

agreements for the principal's care. The health care agent's

28

authority may extend beyond the principal's death to make

29

anatomical gifts, dispose of the remains and consent to

30

autopsies.

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1

* * *

2

§ 5460.  Relation of health care agent to court-appointed

3

guardian and other agents.

4

(a)  Accountability of health care agent.--If a principal who

5

has executed a health care power of attorney is later

6

adjudicated an incapacitated person and a guardian of the person

7

to make health care decisions is appointed by a court, the

8

health care agent is accountable to the guardian as well as to

9

the principal. [The guardian shall have the same power to revoke

10

or amend the appointment of a health care agent that the

11

principal would have if the principal were not incapacitated but

12

may not revoke or amend other instructions in an advance health

13

directive absent judicial authorization.] In its guardianship

14

order and determination of a person's incapacity, the court

15

shall determine the extent to which the health care agent's

16

authority to act remains in effect.

17

* * *

18

Section 3.  Sections 5601(b), (d) and (e), 5601.2(a), (b),

19

(c), (d) and (e), 5602(a) and (c) and 5603(a), (d), (e), (h),

20

(k)(4), (p), (q) and (u.1) of Title 20 are amended and the

21

sections are amended by adding subsections to read:

22

§ 5601.  General provisions.

23

* * *

24

(b)  Execution.--A power of attorney shall be dated and 

25

signed [and dated] by the principal by signature or mark, or by

26

another individual on behalf of and at the direction of the

27

principal if the principal is unable to sign but specifically

28

directs another individual to sign the power of attorney. [If

29

the power of attorney is executed by mark or by another

30

individual, then it] The power of attorney shall be witnessed by

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1

two individuals, each of whom is 18 years of age or older. A

2

witness shall not be an agent appointed in the power of attorney

3

or the individual who signed the power of attorney on behalf of

4

and at the direction of the principal.

5

* * *

6

(d)  Acknowledgment executed by agent.--An agent shall have

7

no authority to act as agent under the power of attorney unless

8

the agent has first executed and affixed to the power of

9

attorney an acknowledgment in substantially the following form:

10

I,                 , have read the attached power of attorney

11

and am the person identified as the agent for the principal. I

12

hereby acknowledge that in the absence of a specific provision

13

to the contrary in the power of attorney or in 20 Pa.C.S. when I

14

act as agent:

15

I shall exercise the powers for the benefit of the principal.

16

I shall keep the assets of the principal separate from my

17

assets.

18

I shall exercise reasonable caution and prudence.

19

I shall keep a full and accurate record of all actions,

20

receipts and disbursements on behalf of the principal.

21

I shall preserve the estate plan of the principal, including

22

the effect of intestacy if the principal does not have a will.

23

                            (Agent)                 (Date)

24

(e)  Fiduciary relationship.--An agent acting under a power

25

of attorney has a fiduciary relationship with the principal. In

26

the absence of a specific provision to the contrary in the power

27

of attorney, the fiduciary relationship includes the duty to:

28

(1)  Exercise the powers for the benefit of the

29

principal.

30

(2)  Keep separate the assets of the principal from those

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1

of an agent.

2

(3)  Exercise reasonable caution and prudence.

3

(4)  Keep a full and accurate record of all actions,

4

receipts and disbursements on behalf of the principal.

5

(5)  Preserve the estate plan of the principal, including

6

the effect of intestacy if the principal does not have a

7

will.

8

* * *

9

(e.3)  Equity and justice.--

10

(1)  An agent and a recipient of a gift or other

11

financial benefit, during the principal's life or at the

12

principal's death, arising from the action of the agent is

13

liable as equity and justice may require to the extent that

14

the court determines that the action of the agent was

15

inconsistent with:

16

(i)  prudent estate planning or financial management

17

for the principal; or

18

(ii)  the known or probable intent of the principal

19

with respect to the disposition of the principal's

20

property.

21

(2)  An agent who in good faith exercises reasonable

22

caution and prudence shall not be personally liable.

23

* * *

24

§ 5601.2.  Special rules for gifts and changes to principal's

25

estate plan.

26

(a)  General rule.--A principal may empower an agent to make

27

a gift or make changes to the principal's estate plan in a power

28

of attorney only as provided in this section. A power to make a

29

gift or make changes to the principal's estate plan may not be

30

inferred from a grant of another power or from a general grant

- 5 -

 


1

of authority to do anything that the principal could do, except

2

to the extent that a principal expressly grants the agent the

3

power under section 5603(u.3) (relating to implementation of

4

power of attorney) authorizing personal and family maintenance.

5

(b)  Limited gifts not requiring court approval.--Limited

6

gifts that are authorized in compliance with this subsection do

7

not require court approval. A principal may authorize an agent

8

to make [a] limited [gift] gifts as defined under section

9

5603(a)(2) [(relating to implementation of power of attorney)]

10

only by the inclusion of:

11

(1)  the language quoted in section 5602(a)(1) (relating

12

to form of power of attorney); or

13

(2)  other language showing a similar intent on the part

14

of the principal to empower the agent to make a limited gift.

15

(c)  [Unlimited] Other gifts specifically authorized and not

16

requiring court approval.--Other gifts that are specifically

17

authorized in compliance with this subsection do not require

18

court approval. A principal may authorize an agent to make any

19

other gift only by specifically [providing for and defining the

20

agent's authority in the power of attorney.] identifying:

21

(1)  The donee, such as an individual, charity or other

22

entity, whether by name, relationship, class or other

23

description, except that the phrase "any donee" or other

24

language showing a similar intent is not a specific

25

identification.

26

(2)  The property to be gifted or the amounts of cash

27

gifts.

28

(c.1)  Other actions not requiring court approval.--

29

(1)  An agent may act without court approval if the

30

action:

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1

(i)  Is otherwise authorized by the power of

2

attorney.

3

(ii)  Maintains and is consistent with the

4

preservation of the principal's estate plan, including

5

the effect of intestacy if the principal does not have a

6

will.

7

(2)  An action under this subsection may include:

8

(i)  Placing property into joint names with rights of

9

survivorship.

10

(ii)  The use of a designation such as "in trust

11

for," "payable on death" or "transfer on death."

12

(iii)  The execution of a beneficiary designation.

13

(3)  An action under this subsection may not be taken if

14

the interest of any beneficiary under the principal's

15

existing estate plan, including an intestacy if the principal

16

has no will, is prejudiced thereby. Either of the following

17

shall be considered a change in the principal's estate plan

18

and governed by subsection (c.2), which requires court

19

approval:

20

(i)  An action that results in a beneficiary

21

receiving at the death of the principal an interest

22

outright and free of trust that would have passed in

23

trust at death under the principal's present estate plan.

24

(ii)  An action that converts an outright gift at

25

death into one received in trust.

26

(c.2)  Court-approved gifts and changes to estate plan.--

27

(1)  Subject to paragraph (2), a principal may authorize

28

an agent to do the following on behalf of the principal or

29

with the principal's property:

30

(i)  Make a gift other than a gift authorized under

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1

subsection (b) or (c).

2

(ii)  Create or change rights of survivorship.

3

(iii)  Create or change a beneficiary designation.

4

(iv)  Create an inter vivos trust, other than a trust

5

described in section 5603(b) or (c), or amend, revoke or

6

terminate an existing trust, but only to the extent that

7

the principal had previously retained or been granted

8

such powers.

9

(v)  Waive the principal's right to be a beneficiary

10

of a joint and survivor annuity, including a survivor

11

benefit under a retirement plan.

12

(2)  An agent may exercise a power under paragraph (1)

13

only if:

14

(i)  The power of attorney expressly grants the agent

15

the specific authority to exercise the power.

16

(ii)  The court having jurisdiction over the agent,

17

upon petition by the agent, approves the agent's proposed

18

action after finding that it is consistent with both:

19

(A)  Prudent estate planning or financial

20

management for the principal.

21

(B)  The known or probable intent of the

22

principal with respect to the disposition of the

23

principal's property.

24

(d)  Nature of gifts.--In the absence of a specific provision

25

to the contrary in the power of attorney:

26

(1)  A power to make a [limited] gift under subsection

27

(b) or (c) shall be construed to empower the agent to make a

28

gift to each donee either outright [or], in trust or to a

29

tuition savings account or prepaid tuition plan as defined in

30

section 529 of the Internal Revenue Code of 1986 (Public Law

- 8 -

 


1

99-514, 26 U.S.C. § 529).

2

(2)  In the case of any gift to a minor, that gift may be

3

made in trust or in accordance with Chapter 53 (relating to

4

Pennsylvania Uniform Transfers to Minors Act) or section 5155

5

(relating to order of court).

6

(3)  In the case of any gift made in trust, the agent may

7

execute a deed of trust for such purpose, designating one or

8

more persons, including the agent, as original or successor

9

trustees, or may make an addition to an existing trust.

10

(4)  In making any gift, the agent need not treat the

11

donees equally or proportionately and may entirely exclude

12

one or more permissible donees.

13

(5)  The pattern followed on the occasion of any gift

14

need not be followed on the occasion of any other gift.

15

[(e)  Equity.--An agent and the donee of a gift shall be

16

liable as equity and justice may require to the extent that, as

17

determined by the court, a gift made by the agent is

18

inconsistent with prudent estate planning or financial

19

management for the principal or with the known or probable

20

intent of the principal with respect to disposition of the

21

estate.]

22

* * *

23

(g)  Court proceeding.--When court approval is required under

24

subsection (c.2):

25

(1)  The burden of proof, by clear and convincing

26

evidence, shall be on the agent.

27

(2)  Notice of the petition and hearing shall be given in

28

the manner as the court shall direct to:

29

(i)  All persons who are sui juris and would be

30

entitled to share in the principal's estate if the

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1

principal died intestate at that time.

2

(ii)  Any person known to the agent who would be

3

prejudiced by the proposed action.

4

(iii)  Such other parties as the court may direct.

5

(3)  The hearing may be closed to the public unless the

6

principal or the principal's counsel objects.

7

(4)  The court sua sponte or upon request of the agent or

8

others may direct that some or all of the pleadings or

9

documents related to the petition and hearing be sealed or

10

redacted in the manner and to the extent that the court deems

11

appropriate.

12

§ 5602.  Form of power of attorney.

13

(a)  Specification of powers.--A principal may, by inclusion

14

of the language quoted in any of the following paragraphs or by

15

inclusion of other language showing a similar intent on the part

16

of the principal, empower an agent to do any or all of the

17

following, each of which is defined in section 5603 (relating to

18

implementation of power of attorney):

19

(1)  "To make limited gifts."

20

(2)  "To create a trust for my benefit."

21

(3)  "To make additions to an existing trust for my

22

benefit."

23

(4)  "To claim an elective share of the estate of my

24

deceased spouse."

25

(5)  "To disclaim any interest in property."

26

(6)  "To renounce fiduciary positions."

27

(7)  "To withdraw and receive the income or corpus of a

28

trust."

29

[(8)  "To authorize my admission to a medical, nursing,

30

residential or similar facility and to enter into agreements

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1

for my care."

2

(9)  "To authorize medical and surgical procedures."]

3

(10)  "To engage in real property transactions."

4

(11)  "To engage in tangible personal property

5

transactions."

6

(12)  "To engage in stock, bond and other securities

7

transactions."

8

(13)  "To engage in commodity and option transactions."

9

(14)  "To engage in banking and financial transactions."

10

(15)  "To borrow money."

11

(16)  "To enter safe deposit boxes."

12

(17)  "To engage in insurance and annuity transactions."

13

(18)  "To engage in retirement plan transactions."

14

(19)  "To handle interests in estates and trusts."

15

(20)  "To pursue claims and litigation."

16

(21)  "To receive government benefits."

17

(22)  "To pursue tax matters."

18

[(23)  "To make an anatomical gift of all or part of my

19

body."]

20

(24)  "To operate a business or entity."

21

(25)  "To provide for personal and family maintenance."

22

* * *

23

(c)  Filing of power of attorney.--An originally executed

24

[copy of the] power of attorney may be filed with the clerk of

25

the orphans' court division of the court of common pleas in the

26

county in which the principal resides, and if it is

27

acknowledged, it may be recorded in the office for the recording

28

of deeds of the county of the principal's residence and of each

29

county in which real property to be affected by an exercise of

30

the power is located. The clerk of the orphans' court division

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1

or any office for the recording of deeds with whom the power has

2

been filed, may, upon request, issue certified copies of the

3

power of attorney. Each such certified copy shall have the same

4

validity and the same force and effect as if it were the

5

original, and it may be filed of record in any other office of

6

this Commonwealth (including, without limitation, the clerk of

7

the orphans' court division or the office for the recording of

8

deeds) as if it were the original.

9

(d)  Copy of power of attorney.--Except for the purpose of

10

filing under subsection (c), a photocopy or electronically

11

transmitted copy of an originally executed power of attorney has

12

the same effect as the original.

13

§ 5603.  Implementation of power of attorney.

14

(a)  Power to make limited gifts.--

15

(2)  A power "to make limited gifts" shall mean that the

16

agent may make only gifts for or on behalf of the principal

17

which are limited as follows:

18

(i)  The class of permissible donees under this

19

paragraph shall consist solely of the principal's spouse,

20

issue and a spouse of the principal's issue (including

21

the agent if a member of any such class), or any of them.

22

(ii)  During each calendar year, the gifts made to

23

any permissible donee, pursuant to such power, shall have

24

an aggregate value not in excess of, and shall be made in

25

such manner as to qualify in their entirety for, the

26

annual exclusion from the Federal gift tax permitted

27

under section 2503(b) of the Internal Revenue Code of

28

1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) for the

29

principal [and, if applicable, the principal's spouse]

30

or, if the principal's spouse agrees to consent to

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1

splitting gifts under section 2513(a) of the Internal

2

Revenue Code of 1986, in an amount per donee (other than

3

the spouse) not to exceed twice the annual exclusion

4

limit. The limits under this subparagraph may be exceeded

5

if and to the extent the agent elects to equalize gifts

6

among family units with each child of the principal and

7

the child's descendants treated as a family unit.

8

(iv)  In addition to the gifts authorized by

9

subparagraphs (i) and (ii), a gift made pursuant to such

10

power may be for the tuition or medical care of any

11

permissible donee to the extent that the gift is excluded

12

from the Federal gift tax under section 2503(e) of the

13

Internal Revenue Code of 1986 as a qualified transfer.

14

(v)  The agent may consent, pursuant to section

15

2513(a) of the Internal Revenue Code of 1986, to the

16

splitting of gifts made by the principal's spouse to the

17

principal's issue or a spouse of the principal's issue in

18

any amount and to the splitting of gifts made by the

19

principal's spouse to any other person in amounts not

20

exceeding the aggregate annual gift tax exclusions for

21

both spouses under section 2503(b) of the Internal

22

Revenue Code of 1986.

23

* * *

24

(d)  Power to claim an elective share.--A power "to claim an

25

elective share of the estate of my deceased spouse" shall mean

26

that the agent may elect to take against the will and

27

conveyances of the principal's deceased spouse, disclaim any

28

interest in property which the principal is required to disclaim

29

as a result of such election, retain any property which the

30

principal has the right to elect to retain, file petitions

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1

pertaining to the election, including petitions to extend the

2

time for electing and petitions for orders, decrees and

3

judgments in accordance with section 2211(c) and (d) (relating

4

to determination of effect of election; enforcement), and take

5

all other actions which the agent deems appropriate in order to

6

effectuate the election: Provided, however, That the election

7

shall be made only upon the approval of the court having

8

jurisdiction of the principal's estate in accordance with

9

section 2206 (relating to right of election personal to

10

surviving spouse) in the case of a principal who [has been

11

adjudicated] is an incapacitated person, or upon the approval of

12

the court having jurisdiction of the deceased spouse's estate in

13

the case of a principal who [has not been adjudicated] is not an

14

incapacitated person.

15

(e)  Power to disclaim any interest in property.--A power "to

16

disclaim any interest in property" shall mean that the agent may

17

release or disclaim any interest in property on behalf of the

18

principal in accordance with Chapter 62 (relating to

19

disclaimers) or section 6103 (relating to release or disclaimer

20

of powers or interests), provided that any disclaimer under

21

Chapter 62 shall be in accordance with the provisions of section

22

6202 (relating to disclaimers by fiduciaries or agents) in the

23

case of a principal who [shall have been adjudicated] is an

24

incapacitated person at the time of the execution of the

25

disclaimer.

26

* * *

27

[(h)  Power to authorize admission to medical facility and

28

power to authorize medical procedures.--

29

(1)  A power "to authorize my admission to a medical,

30

nursing, residential or similar facility, and to enter into

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1

agreements for my care" shall mean that the agent may apply

2

for the admission of the principal to a medical, nursing,

3

residential or other similar facility, execute any consent or

4

admission forms required by such facility which are

5

consistent with this paragraph, and enter into agreements for

6

the care of the principal by such facility or elsewhere

7

during his lifetime or for such lesser period of time as the

8

agent may designate, including the retention of nurses for

9

the principal.

10

(2)  A power "to authorize medical and surgical

11

procedures" shall mean that the agent may arrange for and

12

consent to medical, therapeutical and surgical procedures for

13

the principal, including the administration of drugs.]

14

* * *

15

(k)  Power to engage in stock, bond and other securities

16

transactions.--A power to "engage in stock, bond and other

17

securities transactions" shall mean that the agent may:

18

* * *

19

(4)  Join in any merger, reorganization, consolidation,

20

dissolution, liquidation, voting-trust plan or other

21

concerted action of security holders and make payments in

22

connection therewith.

23

* * *

24

(p)  Power to engage in insurance and annuity transactions.--

25

A power to "engage in insurance and annuity transactions" shall

26

mean that the agent may:

27

(1)  Purchase, continue, renew, convert or terminate any

28

type of insurance (including, but not limited to, life,

29

accident, health, disability or liability insurance) or

30

annuity and pay premiums and collect benefits and proceeds

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1

under [insurance] these policies.

2

(2)  Exercise nonforfeiture provisions under insurance

3

policies and annuity contracts.

4

(3)  In general, exercise all powers with respect to

5

insurance and annuities that the principal could if present[;

6

however, the agent cannot designate himself beneficiary of a

7

life insurance policy unless the agent is the spouse, child,

8

grandchild, parent, brother or sister of the principal],

9

including the designation of a beneficiary, but only as

10

permitted under section 5601.2(c.1) and (c.2) (relating to

11

special rules for gifts and changes to principal's estate

12

plan).

13

(q)  Power to engage in retirement plan transactions.--A

14

power to "engage in retirement plan transactions" shall mean

15

that the agent may contribute to, withdraw from and deposit

16

funds in any type of retirement plan (including, but not limited

17

to, any tax qualified or nonqualified pension, profit sharing,

18

stock bonus, employee savings and retirement plan, deferred

19

compensation plan or individual retirement account), select and

20

change payment options for the principal, make roll-over

21

contributions from any retirement plan to other retirement plans

22

and, in general, exercise all powers with respect to retirement

23

plans that the principal could if present, including the

24

designation of a beneficiary, but only as permitted under

25

section 5601.2(c.1) and (c.2).

26

* * *

27

[(u.1)  Power to make anatomical gift.--A power "to make an

28

anatomical gift of all or part of my body" shall mean that the

29

agent may arrange and consent, either before or after the death

30

of the principal, to procedures to make an anatomical gift in

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1

accordance with Chapter 86 (relating to anatomical gifts).]

2

(u.2)  Power to operate a business or entity.--A power "to

3

operate a business or entity" shall mean that the agent may:

4

(1)  Continue or participate in the operation of any

5

business or other entity in which the principal holds an

6

interest, whether alone or with others, by making and

7

implementing decisions regarding its financing, operations,

8

employees and all other matters pertinent to the business or

9

entity.

10

(2)  Change the form of ownership of the business or

11

entity to a corporation, partnership, limited liability

12

company or other entity, and initiate or take part in a

13

corporate reorganization, including a merger, consolidation,

14

dissolution or other change in organizational form.

15

(3)  Compensate an agent actively managing, supervising

16

or engaging in the operation of a business or entity, as

17

appropriate, from the principal's assets or from the business

18

or entity, provided the compensation is reasonably based upon

19

the actual responsibilities assumed and performed.

20

(4)  In general, exercise all powers with respect to

21

operating a business or entity that the principal could if

22

present.

23

(u.3)  Power to provide for personal and family

24

maintenance.--

25

(1)  A power "to provide for personal and family

26

maintenance" shall mean that the agent may provide for the

27

health, education, maintenance and support, in order to

28

maintain the customary standard of living of the principal's

29

spouse and the following individuals, whether living when the

30

power of attorney is executed or later born:

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1

(i)  The principal's minor children.

2

(ii)  Other individuals legally entitled to be

3

supported by the principal.

4

(iii)  The individuals whom the principal has

5

customarily supported.

6

(2)  In acting under this subsection, the agent shall:

7

(i)  Take into account the long-term needs of the

8

principal.

9

(ii)  Consider any independent means available to

10

those individuals apart from the support provided by the

11

principal.

12

(3)  Authority with respect to personal and family

13

maintenance is in addition to and not limited by authority

14

that an agent may or may not have, or court approval that may

15

be necessary with respect to gifts under this chapter.

16

* * *

17

Section 4.  Section 5604(c)(1) of Title 20 is amended,

18

subsection (c) is amended by adding a paragraph and the section

19

is amended by adding a subsection to read:

20

§ 5604.  Durable powers of attorney.

21

* * *

22

(c)  Relation of agent to court-appointed guardian.--

23

(1)  If, following execution of a durable power of

24

attorney, the principal [is adjudicated] becomes an

25

incapacitated person and a guardian is appointed for his

26

estate, the agent is accountable to the guardian as well as

27

to the principal. [The guardian shall have the same power to

28

revoke or amend the power of attorney that the principal

29

would have had if he were not an incapacitated person.]

30

* * *

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1

(3)  In its guardianship order and determination of a

2

person's incapacity, the court shall determine whether and

3

the extent to which the incapacitated person's durable power

4

of attorney remains in effect.

5

* * *

6

(d.1)  Disclosure.--Except as otherwise provided in the power

7

of attorney, an agent is not required to disclose receipts,

8

disbursements or transactions conducted on behalf of the

9

principal unless:

10

(1)  ordered by a court; or

11

(2)  requested by:

12

(i)  the principal;

13

(ii)  the principal's guardian;

14

(iii)  another fiduciary acting for the principal;

15

(iv)  a governmental agency having authority to

16

protect the welfare of the principal as set forth in

17

subsection (d); or

18

(v)  the personal representative or successor in

19

interest of the principal's estate, upon the death of the

20

principal.

21

* * *

22

Section 5.  5610 of Title 20 is amended to read:

23

§ 5610.  Account.

24

An agent shall file an account of his administration whenever

25

directed to do so by the court and may file an account at any

26

other time. All accounts shall be filed in the office of the

27

clerk in the county where the principal resides. The court may

28

assess the costs of the accounting proceeding as it deems

29

appropriate, including the costs of preparing and filing the

30

account.

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1

Section 6.  Title 20 is amended by adding sections to read:

2

§ 5612.  Investigation of financial abuse and mismanagement.

3

The court may order an investigation, appoint a guardian ad

4

litem, make a referral to an appropriate agency or take any

5

other appropriate action regarding allegations that a principal

6

is suffering from financial abuse or mismanagement by the

7

principal's agent under a power of attorney:

8

(1)  upon petition by an appropriate party and a

9

reasonable showing of the financial abuse or mismanagement;

10

or

11

(2)  after the court is otherwise informed of the

12

financial abuse or mismanagement.

13

§ 5613.  Jurisdiction and venue.

14

(a)  County having venue.--Venue of any matter pertaining to

15

the exercise of a power by an agent acting under a power of

16

attorney as provided in this chapter shall be in the county in

17

which the principal is domiciled, a resident or residing in a

18

long-term care facility.

19

(b)  Declining jurisdiction.--

20

(1)  A court having jurisdiction may decline to exercise

21

jurisdiction if at any time it determines that a court of

22

another county or state is a more appropriate forum.

23

(2)  If a court of this Commonwealth declines to exercise

24

jurisdiction, it shall either dismiss the proceeding or stay

25

the proceeding upon condition that a proceeding be promptly

26

commenced in another county or state. A court may impose any

27

other condition that it deems appropriate.

28

§ 5614.  Principles of law and equity.

29

Except as otherwise provided by this chapter or another

30

statute of this Commonwealth, common law and the principles of

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1

equity supplement this chapter.

2

Section 7.  This act shall apply as follows:

3

(1)  Except as set forth in paragraph (2), this act shall

4

apply to all powers of attorney executed on or after the

5

effective date of this section.

6

(2)  (i)  Nothing in this act shall be construed to limit

7

the effectiveness of powers of attorney in effect prior

8

to the effective date of of this section.

9

(ii)  Any provision in a power of attorney

10

incorporating by reference a power under 20 Pa.C.S. §

11

5602(a)(8), (9) or (23) prior to the repeal of 20 Pa.C.S.

12

§ 5602(a)(8), (9) or (23) shall continue to be governed

13

by the respective paragraph of 20 Pa.C.S. § 5602(a) as if

14

no repeal occurred.

15

Section 8.  This act shall take effect as follows:

16

(1)  The following provisions shall take effect

17

immediately:

18

(i)  This section.

19

(ii)  The addition of 20 Pa.C.S. § 5601(e.3).

20

(iii)  The repeal of 20 Pa.C.S. § 5601.2(e).

21

(2)  The remainder of this act shall take effect in six

22

months.

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