[§551E-10] Agent's duties. (a)
Notwithstanding provisions in the power of attorney, an agent that has accepted
appointment shall:
(1) Act in accordance with the principal's reasonable
expectations to the extent actually known by the agent and, otherwise, in the
principal's best interest;
(2) Act in good faith; and
(3) Act only within the scope of authority granted in
the power of attorney.
(b) Except as otherwise provided in the power
of attorney, an agent that has accepted appointment shall:
(1) Act loyally for the principal's benefit;
(2) Act so as not to create a conflict of interest
that impairs the agent's ability to act impartially in the principal's best
interest;
(3) Act with the care, competence, and diligence
ordinarily exercised by agents in similar circumstances;
(4) Keep a record of all receipts, disbursements, and
transactions made on behalf of the principal;
(5) Cooperate with a person that has authority to
make health care decisions for the principal to carry out the principal's reasonable
expectations to the extent actually known by the agent and, otherwise, act in
the principal's best interest; and
(6) Attempt to preserve the principal's estate plan,
to the extent actually known by the agent, if preserving the plan is consistent
with the principal's best interest based on all relevant factors, including:
(A) The value and nature of the principal's
property;
(B) The principal's foreseeable obligations
and need for maintenance;
(C) Minimization of taxes, including income,
estate, inheritance, generation-skipping transfer, and gift taxes; and
(D) Eligibility for a benefit, a program, or
assistance under a statute or regulation.
(c) An agent that acts in good faith shall not
be liable to any beneficiary of the principal's estate plan for failure to
preserve the plan.
(d) An agent that acts with care, competence,
and diligence for the best interest of the principal shall not be liable solely
because the agent also benefits from the act or has an individual or
conflicting interest in relation to the property or affairs of the principal.
(e) If an agent is selected by the principal
because of special skills or expertise possessed by the agent or in reliance on
the agent's representation that the agent has special skills or expertise, the
special skills or expertise shall be considered in determining whether the
agent has acted with care, competence, and diligence under the circumstances.
(f) Absent a breach of duty to the principal,
an agent shall not be liable if the value of the principal's property declines.
(g) An agent that exercises authority to
delegate to another person the authority granted by the principal or that
engages another person on behalf of the principal shall not be liable for an
act, error of judgment, or default of that person if the agent exercises care,
competence, and diligence in selecting and monitoring the person.
(h) Except as otherwise provided in the power
of attorney, an agent shall not be required to disclose receipts,
disbursements, or transactions conducted on behalf of the principal unless
ordered by a court or requested by the principal, a guardian, a conservator,
another fiduciary acting for the principal, a governmental agency having
authority to protect the welfare of the principal, or, upon the death of the
principal, by the personal representative or successor in interest of the
principal's estate. If so requested, within thirty days the agent shall comply
with the request or provide a writing or other record substantiating why additional
time is needed and shall comply with the request within an additional thirty
days. [L 2014, c 22, pt of §1]