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32 Michigan Prob & Est Plan J 17 (2012-2013)
A Summary of Michigan's New Durable Power of Attorney Law 2012 PA 141 - MCL 700.5501

handle is hein.journals/miprobeslnj32 and id is 19 raw text is: Winter 2012 A Summary of Michigan's New Durable Power of Attorney Law 2012 PA 141-MCL 700.5501 By Marlaine 2012 PA 141 became effective on May 22, 2012. Even so, the new portions of MCL 700.5501 do not apply to Durable Powers of Attorney (DPOAs) signed before October 1, 2012. Many DPOAs executed on or after Octo- ber 1, 2012, however, will be affected by MCL 700.5501, as amended. 2012 PA 141 (Enrolled SB 92) was introduced in January 2011 by Senator Bieda in order to re- duce financial exploitation of the elderly by their designated agents, or attorneys-in-fact. This leg- islation made several changes to Michigan's ex- isting law on agency, but it was not an attempt to completely codify the existing body of agency law. Subsection (1) of MCL 700.5501 remains un- changed substantively and is, for the most part, a recitation of prior EPIC Section 5501. The new portions are subsections (2) through (7). A sum- mary of the key provisions of MCL 700.5501, as amended, is provided below. A sample DPOA follows the summary. New Execution Formalities-MCL 700.5501(2) A DPOA executed under this section shall be: Dated; Signed voluntarily and by the principal or a notary public on the principal's be- half pursuant to MCL 55.293; and Executed in one or both of the follow- ing ways: Signed in the presence of two wit- nesses, neither of whom is the agent, and both of whom also sign the DPOA; and Acknowledged by the principal be- fore a notary public, who endorses on the DPOA a certificate of that ac- knowledgment and the true date of taking the acknowledgment. C. Teahan Responsibilities and Limitations-MCL 700.5501(3) MCL 700.5501(3) states that an agent desig- nated and acting under a DPOA has the author- ity, rights, responsibilities, and limitations as pro- vided by law with respect to a DPOA, including, but not limited to, those described below. The Agent shall do the following: Except as provided in the DPOA, act in accordance with the standards of care applicable to fiduciaries exercising powers under a DPOA.1 Take reasonable steps to follow the in- structions of the principal. Upon request of the principal, keep the principal informed of the agent's ac- tions. Provide an accounting to the principal upon request of the principal, to a con- servator or guardian appointed on be- half of the principal upon request of the guardian or conservator, or pursuant to judicial order. Maintain records of the agent's actions on behalf of the principal, including transactions, receipts, disbursements, and investments. The Agent shall not do the following unless provided for in the DPOA: Make a gift of all or any part of the prin- cipal's assets; however, gifts may also be provided for by judicial order. Create an account or other asset in joint tenancy between the principal and the agent (while acting as agent); how- ever, creation of joint tenancies may also be provided for by judicial order. Receive reasonable compensation for the agent's services. M I MICHIGAN PROBATE & ESTATE PLANNING

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