Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H1523 Compare Versions

Only one version of the bill is available at this time.

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2	2	HOUSE DOCKET, NO. 364 FILED ON: 1/12/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 1523
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Carmine Lawrence Gentile
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to the Uniform Power of Attorney Act.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Carmine Lawrence Gentile13th Middlesex1/12/2023 1 of 44
16	16	HOUSE DOCKET, NO. 364 FILED ON: 1/12/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 1523
18	18	By Representative Gentile of Sudbury, a petition (accompanied by bill, House, No. 1523) of
19	19	Carmine Lawrence Gentile for legislation to establish the Uniform Power of Attorney act. The
20	20	Judiciary.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE HOUSE, NO. 1598 OF 2021-2022.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Third General Court
26	26	(2023-2024)
27	27	_______________
28	28	An Act relative to the Uniform Power of Attorney Act.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. The General Laws are hereby amended by inserting after chapter 201F the
32	32	2following chapter:-
33	33	3 CHAPTER 201G
34	34	4 UNIFORM POWER OF ATTORNEY ACT
35	35	5 Section 1. For the purposes of this chapter the following terms shall, unless the context
36	36	6clearly appears otherwise, have the following meanings:-
37	37	7 “Agent”, a person granted authority to act for a principal under a power of
38	38	8attorney, whether denominated an agent, attorney-in-fact, or otherwise. The term includes an
39	39	9original agent, coagent, successor agent, and a person to which an agent’s authority is delegated. 2 of 44
40	40	10 “Benefits from governmental programs or civil or military service”, any benefit, program
41	41	11or assistance provided under a statute or regulation including Social Security, Medicare, and
42	42	12Medicaid.
43	43	13 “Durable,” with respect to a power of attorney, means not terminated by the
44	44	14principal’s incapacity.
45	45	15 “Electronic”, relating to technology having electrical, digital, magnetic, wireless,
46	46	16optical, electromagnetic or similar capabilities.
47	47	17 “Good faith”, honesty in fact.
48	48	18 “Incapacity”, inability of an individual to manage property or business affairs
49	49	19because the individual:
50	50	20 (i) has an impairment in the ability to receive and evaluate information or
51	51	21make or communicate decisions even with the use of technological assistance; or
52	52	22 (ii) is:
53	53	23 (A) missing;
54	54	24 (B) detained, including incarcerated in a penal system; or
55	55	25 (C) outside the United States and unable to return.
56	56	26 “Person”, an individual, corporation, business trust, estate, trust, partnership,
57	57	27limited liability company, association, joint venture, public corporation, government or
58	58	28governmental subdivision, agency, or instrumentality or any other legal or commercial entity. 3 of 44
59	59	29 “Power of attorney”, a writing or other record that grants authority to an agent to
60	60	30act in the place of the principal, whether or not the term power of attorney is used.
61	61	31 “Presently exercisable general power of appointment,” with respect to property or
62	62	32a property interest subject to a power of appointment, means power exercisable at the time in
63	63	33question to vest absolute ownership in the principal individually, the principal’s estate, the
64	64	34principal’s creditors, or the creditors of the principal’s estate. The term includes a power of
65	65	35appointment not exercisable until the occurrence of a specified event, the satisfaction of an
66	66	36ascertainable standard, or the passage of a specified period only after the occurrence of the
67	67	37specified event, the satisfaction of the ascertainable standard, or the passage of the specified
68	68	38period. The term does not include a power exercisable in a fiduciary capacity or only by will.
69	69	39 “Principal”, an individual who grants authority to an agent in a power of attorney.
70	70	40 “Property”, anything that may be the subject of ownership, whether real or
71	71	41personal, or legal or equitable, or any interest or right therein.
72	72	42 “Record”, information that is inscribed on a tangible medium or that is stored in
73	73	43an electronic or other medium and is retrievable in perceivable form.
74	74	44 “Retirement plan”, a plan or account created by an employer, the principal or another
75	75	45individual to provide retirement benefits or deferred compensation of which the principal is a
76	76	46participant, beneficiary or owner, including a plan or account under the following sections of the
77	77	47Internal Revenue Code:
78	78	48 (1) an individual retirement account under Internal Revenue Code Section
79	79	49408, 26 U.S.C. Section 408; 4 of 44
80	80	50 (2) a Roth individual retirement account under Internal Revenue Code
81	81	51Section 408A, 26 U.S.C. Section 408A;
82	82	52 (3) a deemed individual retirement account under Internal Revenue Code
83	83	53Section 408(q), 26 U.S.C. Section 408(q);
84	84	54 (4) an annuity or mutual fund custodial account under Internal Revenue
85	85	55Code Section 403(b), 26 U.S.C. Section 403(b);
86	86	56 (5) a pension, profit-sharing, stock bonus, or other retirement plan
87	87	57qualified under Internal Revenue Code Section 401(a), 26 U.S.C. Section 401(a);
88	88	58 (6) a plan under Internal Revenue Code Section 457(b), 26 U.S.C. Section
89	89	59457(b); and
90	90	60 (7) a nonqualified deferred compensation plan under Internal Revenue
91	91	61Code Section 409A, 26 U.S.C. Section 409A.
92	92	62 “Sign”, with present intent to authenticate or adopt a record:
93	93	63 (A) to execute or adopt a tangible symbol; or
94	94	64 (B) to attach to or logically associate with the record an electronic sound,
95	95	65symbol, or process.
96	96	66 “State”, a state of the United States, the District of Columbia, Puerto Rico, the
97	97	67United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of
98	98	68the United States. 5 of 44
99	99	69 “Stocks and bonds”, stocks, bonds, mutual funds and all other types of securities
100	100	70and financial instruments, whether held directly, indirectly or in any other manner. The term
101	101	71does not include commodity futures contracts and call or put options on stocks or stock indexes.
102	102	72
103	103	73 Section 2. This chapter applies to all powers of attorney except:
104	104	74 (i) a power to the extent it is coupled with an interest in the subject of the power,
105	105	75including a power given to or for the benefit of a creditor in connection with a credit transaction;
106	106	76 (ii) a power to make health-care decisions;
107	107	77 (iii) a proxy or other delegation to exercise voting rights or management rights
108	108	78with respect to an entity; and
109	109	79 (iv) a power created on a form prescribed by a government or governmental
110	110	80subdivision, agency or instrumentality for a governmental purpose.
111	111	81
112	112	82 Section 3. A power of attorney created under this chapter is durable unless it expressly
113	113	83provides that it is terminated by the incapacity of the principal.
114	114	84
115	115	85 Section 4. A power of attorney shall be signed by the principal or in the principal’s
116	116	86conscious presence by another individual directed by the principal to sign the principal’s name
117	117	87on the power of attorney. A signature on a power of attorney is presumed genuine if the principal 6 of 44
118	118	88acknowledges the signature before a notary public or other individual authorized by law to take
119	119	89acknowledgments.
120	120	90 Section 5. (a) A power of attorney executed in the commonwealth on or after June 30,
121	121	912022 is valid if its execution complies with section 4.
122	122	92 (b) A power of attorney executed in the commonwealth before June 30, 2022 is valid if
123	123	93its execution complied with the law of the commonwealth as it existed at the time of execution.
124	124	94 (c) A power of attorney executed other than in the commonwealth is valid in the
125	125	95commonwealth if, when the power of attorney was executed, the execution complied with:
126	126	96 (1) the law of the jurisdiction that determines the meaning and effect of
127	127	97the power of attorney pursuant to section 6; or
128	128	98 (2) the requirements for a military power of attorney pursuant to 10
129	129	99U.S.C. Section 1044b.
130	130	100 (d) Except as otherwise provided by a general or special law other than this
131	131	101chapter, a photocopy or electronically transmitted copy of an original power of attorney has the
132	132	102same effect as the original.
133	133	103
134	134	104 Section 6. The meaning and effect of a power of attorney is determined by the law of the
135	135	105jurisdiction indicated in the power of attorney and, in the absence of an indication of jurisdiction,
136	136	106by the law of the jurisdiction in which the power of attorney was executed.
137	137	107 7 of 44
138	138	108 Section 7. (a) In a power of attorney, a principal may nominate a conservator or guardian
139	139	109of the principal’s estate or guardian of the principal’s person for consideration by the court if
140	140	110protective proceedings for the principal’s estate or person are begun after the principal executes
141	141	111the power of attorney. Except for good cause shown or disqualification, the court shall make its
142	142	112appointment in accordance with the principal's most recent nomination.
143	143	113 (b) If, after a principal executes a power of attorney, a court appoints a
144	144	114conservator or guardian of the principal’s estate or other fiduciary charged with the management
145	145	115of some or all of the principal's property, the agent is accountable to the fiduciary as well as to
146	146	116the principal. The power of attorney is not terminated and the agent’s authority continues unless
147	147	117limited, suspended, or terminated by the court.
148	148	118
149	149	119 Section 8. (a) A power of attorney is effective when executed unless the principal
150	150	120provides in the power of attorney that it becomes effective at a future date or upon the
151	151	121occurrence of a future event or contingency.
152	152	122 (b) If a power of attorney becomes effective upon the occurrence of a future
153	153	123event or contingency, the principal, in the power of attorney, may authorize one or more persons
154	154	124to determine in a writing or other record that the event or contingency has occurred.
155	155	125 (c) If a power of attorney becomes effective upon the principal’s incapacity and
156	156	126the principal has not authorized a person to determine whether the principal is incapacitated, or
157	157	127the person authorized is unable or unwilling to make the determination, the power of attorney
158	158	128becomes effective upon a determination in a writing or other record by: 8 of 44
159	159	129 (1) a physician or licensed psychologist that the principal is incapacitated
160	160	130within the meaning of clause (i) of the definition of “incapacity” in section 1; or
161	161	131 (2) an attorney at law, a judge, or an appropriate governmental official
162	162	132that the principal is incapacitated within the meaning of clause (ii) of said definition of
163	163	133“incapacity” in said section 1.
164	164	134 (d) A person authorized by the principal in the power of attorney to determine
165	165	135that the principal is incapacitated may act as the principal’s personal representative pursuant to
166	166	136the Health Insurance Portability and Accountability Act, Sections 1171 through 1179 of the
167	167	137Social Security Act, 42 U.S.C. Section 1320d and applicable regulations, to obtain access to the
168	168	138principal’s health-care information and communicate with the principal’s health-care provider.
169	169	139
170	170	140 Section 9. (a) A power of attorney terminates when:
171	171	141 (1) the principal dies;
172	172	142 (2) the principal becomes incapacitated, if the power of attorney is not
173	173	143durable;
174	174	144 (3) the principal revokes the power of attorney;
175	175	145 (4) the power of attorney provides that it terminates;
176	176	146 (5) the purpose of the power of attorney is accomplished; or 9 of 44
177	177	147 (6) the principal revokes the agent’s authority or the agent dies, becomes
178	178	148incapacitated, or resigns, and the power of attorney does not provide for another agent to act
179	179	149under the power of attorney.
180	180	150 (b) An agent’s authority terminates when:
181	181	151 (1) the principal revokes the authority;
182	182	152 (2) the agent dies, becomes incapacitated, or resigns;
183	183	153 (3) an action is filed for the dissolution or annulment of the agent’s
184	184	154marriage to the principal or their legal separation, unless the power of attorney otherwise
185	185	155provides; or
186	186	156 (4) the power of attorney terminates.
187	187	157 (c) Unless the power of attorney otherwise provides, an agent’s authority is
188	188	158exercisable until the authority terminates under subsection (b), notwithstanding a lapse of time
189	189	159since the execution of the power of attorney.
190	190	160 (d) Termination of an agent’s authority or of a power of attorney is not effective
191	191	161as to the agent or another person that, without actual knowledge of the termination, acts in good
192	192	162faith under the power of attorney. An act so performed, unless otherwise invalid or
193	193	163unenforceable, binds the principal and the principal’s successors in interest.
194	194	164 (e) Incapacity of the principal of a power of attorney that is not durable does not
195	195	165revoke or terminate the power of attorney as to an agent or other person that, without actual
196	196	166knowledge of the incapacity, acts in good faith under the power of attorney. An act so 10 of 44
197	197	167performed, unless otherwise invalid or unenforceable, binds the principal and the principal’s
198	198	168successors in interest.
199	199	169 (f) The execution of a power of attorney does not revoke a power of attorney
200	200	170previously executed by the principal unless the subsequent power of attorney provides that the
201	201	171previous power of attorney is revoked or that all other powers of attorney are revoked.
202	202	172
203	203	173 Section 10. (a) A principal may designate 2 or more persons to act as coagents. Unless
204	204	174the power of attorney otherwise provides, each coagent may exercise its authority independently.
205	205	175 (b) A principal may designate 1 or more successor agents to act if an agent
206	206	176resigns, dies, becomes incapacitated, is not qualified to serve or declines to serve. A principal
207	207	177may grant authority to designate 1 or more successor agents to an agent or other person
208	208	178designated by name, office, or function. Unless the power of attorney otherwise provides, a
209	209	179successor agent:
210	210	180 (1) has the same authority as that granted to the original agent; and
211	211	181 (2) may not act until all predecessor agents have resigned, died, become
212	212	182incapacitated, are no longer qualified to serve, or have declined to serve.
213	213	183 (c) Except as otherwise provided in the power of attorney and subsection (d), an
214	214	184agent that does not participate in or conceal a breach of fiduciary duty committed by another
215	215	185agent, including a predecessor agent, is not liable for the actions of the other agent.
216	216	186 (d) An agent that has actual knowledge of a breach or imminent breach of
217	217	187fiduciary duty by another agent shall notify the principal and, if the principal is incapacitated, 11 of 44
218	218	188take any action reasonably appropriate in the circumstances to safeguard the principal’s best
219	219	189interest. An agent that fails to notify the principal or take action as required by this subsection is
220	220	190liable for the reasonably foreseeable damages that could have been avoided if the agent had
221	221	191notified the principal or taken such action.
222	222	192
223	223	193 Section 11. Unless the power of attorney otherwise provides, an agent is entitled to
224	224	194reimbursement of expenses reasonably incurred on behalf of the principal and to compensation
225	225	195that is reasonable under the circumstances.
226	226	196
227	227	197 Section 12. Except as otherwise provided in the power of attorney, a person accepts
228	228	198appointment as an agent under a power of attorney by exercising authority or performing duties
229	229	199as an agent or by any other assertion or conduct indicating acceptance.
230	230	200
231	231	201 Section 13. (a) Notwithstanding provisions in the power of attorney, an agent that has
232	232	202accepted appointment shall:
233	233	203 (1) act in accordance with the principal’s reasonable expectations to the
234	234	204extent actually known by the agent and, otherwise, in the principal’s best interest;
235	235	205 (2) act in good faith; and
236	236	206 (3) act only within the scope of authority granted in the power of attorney. 12 of 44
237	237	207 (b) Except as otherwise provided in the power of attorney, an agent that has
238	238	208accepted appointment shall:
239	239	209 (1) act loyally for the principal’s benefit;
240	240	210 (2) act so as not to create a conflict of interest that impairs the agent’s
241	241	211ability to act impartially in the principal’s best interest;
242	242	212 (3) act with the care, competence, and diligence ordinarily exercised by
243	243	213agents in similar circumstances;
244	244	214 (4) keep a record of all receipts, disbursements, and transactions made on
245	245	215behalf of the principal;
246	246	216 (5) cooperate with a person that has authority to make health-care
247	247	217decisions for the principal to carry out the principal’s reasonable expectations to the extent
248	248	218actually known by the agent and, otherwise, act in the principal’s best interest; and
249	249	219 (6) attempt to preserve the principal’s estate plan, to the extent actually
250	250	220known by the agent, if preserving the plan is consistent with the principal’s best interest based on
251	251	221all relevant factors, including:
252	252	222 (A) the value and nature of the principal’s property;
253	253	223 (B) the principal’s foreseeable obligations and need for
254	254	224maintenance;
255	255	225 (C) minimization of taxes, including income, estate, inheritance,
256	256	226generation-skipping transfer, and gift taxes; and 13 of 44
257	257	227 (D) eligibility for a benefit, a program, or assistance under a
258	258	228statute or regulation.
259	259	229 (c) An agent that acts in good faith is not liable to any beneficiary of the
260	260	230principal’s estate plan for failure to preserve the plan.
261	261	231 (d) An agent that acts with care, competence, and diligence for the best interest of
262	262	232the principal is not liable solely because the agent also benefits from the act or has an individual
263	263	233or conflicting interest in relation to the property or affairs of the principal.
264	264	234 (e) If an agent is selected by the principal because of special skills or expertise
265	265	235possessed by the agent or in reliance on the agent’s representation that the agent has special skills
266	266	236or expertise, the special skills or expertise must be considered in determining whether the agent
267	267	237has acted with care, competence and diligence under the circumstances.
268	268	238 (f) Absent a breach of duty to the principal, an agent is not liable if the value of
269	269	239the principal’s property declines.
270	270	240 (g) An agent that exercises authority to delegate to another person the authority
271	271	241granted by the principal or that engages another person on behalf of the principal is not liable for
272	272	242an act, error of judgment or default of that person if the agent exercises care, competence, and
273	273	243diligence in selecting and monitoring the person.
274	274	244 (h) Except as otherwise provided in the power of attorney, an agent is not
275	275	245required to disclose receipts, disbursements, or transactions conducted on behalf of the principal
276	276	246unless ordered by a court or requested by the principal, a guardian, a conservator, another
277	277	247fiduciary acting for the principal, a governmental agency having authority to protect the welfare 14 of 44
278	278	248of the principal or, upon the death of the principal, by the personal representative or successor in
279	279	249interest of the principal’s estate. If so requested, within 30 days the agent shall comply with the
280	280	250request or provide a writing or other record substantiating why additional time is needed and
281	281	251shall comply with the request within an additional 30 days.
282	282	252
283	283	253 Section 14. A provision in a power of attorney relieving an agent of liability for breach of
284	284	254duty is binding on the principal and the principal’s successors in interest except to the extent the
285	285	255provision:
286	286	256 (1) relieves the agent of liability for breach of duty committed dishonestly, with
287	287	257an improper motive, or with reckless indifference to the purposes of the power of attorney or the
288	288	258best interest of the principal; or
289	289	259 (2) was inserted as a result of an abuse of a confidential or fiduciary relationship
290	290	260with the principal.
291	291	261
292	292	262 Section 15. (a) The following persons may petition a court to construe a power of
293	293	263attorney or review the agent’s conduct, and grant appropriate relief:
294	294	264 (1) the principal or the agent;
295	295	265 (2) a guardian, conservator, or other fiduciary acting for the principal;
296	296	266 (3) a person authorized to make health-care decisions for the principal;
297	297	267 (4) the principal’s spouse, parent, or descendant; 15 of 44
298	298	268 (5) an individual who would qualify as a presumptive heir of the
299	299	269principal;
300	300	270 (6) a person named as a beneficiary to receive any property, benefit, or
301	301	271contractual right on the principal’s death or as a beneficiary of a trust created by or for the
302	302	272principal that has a financial interest in the principal’s estate;
303	303	273 (7) a governmental agency having regulatory authority to protect the
304	304	274welfare of the principal;
305	305	275 (8) the principal’s caregiver or another person that demonstrates sufficient
306	306	276interest in the principal’s welfare; and
307	307	277 (9) a person asked to accept the power of attorney.
308	308	278 (b) Upon motion by the principal, the court shall dismiss a petition filed under
309	309	279this section, unless the court finds that the principal lacks capacity to revoke the agent’s authority
310	310	280or the power of attorney.
311	311	281
312	312	282 Section 16. An agent that violates this chapter is liable to the principal or the principal’s
313	313	283successors in interest for the amount required to:
314	314	284 (i) restore the value of the principal’s property to what it would have been had the
315	315	285violation not occurred; and
316	316	286 (ii) reimburse the principal or the principal’s successors in interest for the
317	317	287attorney’s fees and costs paid on the agent’s behalf. 16 of 44
318	318	288
319	319	289 Section 17. Unless the power of attorney provides a different method for an agent’s
320	320	290resignation, an agent may resign by giving notice to the principal and, if the principal is
321	321	291incapacitated:
322	322	292 (i) to the conservator or guardian, if one has been appointed for the principal, and
323	323	293a coagent or successor agent; or
324	324	294 (ii) if there is no person described in clause (1), to:
325	325	295 (A) the principal’s caregiver;
326	326	296 (B) another person reasonably believed by the agent to have sufficient
327	327	297interest in the principal’s welfare; or
328	328	298 (C) a governmental agency having authority to protect the welfare of the
329	329	299principal.
330	330	300
331	331	301 Section 18. (a) For purposes of this section and section 19, “acknowledged” means
332	332	302purportedly verified before a notary public or other individual authorized to take
333	333	303acknowledgements.
334	334	304 (b) A person that in good faith accepts an acknowledged power of attorney
335	335	305without actual knowledge that the signature is not genuine may rely upon the presumption under
336	336	306section 4 that the signature is genuine. 17 of 44
337	337	307 (c) A person that in good faith accepts an acknowledged power of attorney
338	338	308without actual knowledge that the power of attorney is void, invalid, or terminated, that the
339	339	309purported agent’s authority is void, invalid, or terminated, or that the agent is exceeding or
340	340	310improperly exercising the agent’s authority may rely upon the power of attorney as if the power
341	341	311of attorney were genuine, valid and still in effect, the agent’s authority were genuine, valid and
342	342	312still in effect, and the agent had not exceeded and had properly exercised the authority.
343	343	313 (d) A person that is asked to accept an acknowledged power of attorney may
344	344	314request, and rely upon, without further investigation:
345	345	315 (1) an agent’s certification under penalty of perjury of any factual matter
346	346	316concerning the principal, agent, or power of attorney;
347	347	317 (2) an English translation of the power of attorney if the power of attorney
348	348	318contains, in whole or in part, language other than English; and
349	349	319 (3) an opinion of counsel as to any matter of law concerning the power of
350	350	320attorney if the person making the request provides in a writing or other record the reason for the
351	351	321request.
352	352	322 (e) An English translation or an opinion of counsel requested under this section
353	353	323must be provided at the principal’s expense unless the request is made more than seven business
354	354	324days after the power of attorney is presented for acceptance.
355	355	325 (f) For purposes of this section and section 19, a person that conducts activities
356	356	326through employees is without actual knowledge of a fact relating to a power of attorney, a 18 of 44
357	357	327principal, or an agent if the employee conducting the transaction involving the power of attorney
358	358	328is without actual knowledge of the fact.
359	359	329
360	360	330 Section 19. (a) Except as otherwise provided in subsection (b):
361	361	331 (1) a person shall either accept an acknowledged power of attorney or
362	362	332request a certification, a translation, or an opinion of counsel under section 18 no later than 7
363	363	333business days after presentation of the power of attorney for acceptance;
364	364	334 (2) if a person requests a certification, a translation, or an opinion of
365	365	335counsel under section 18, the person shall accept the power of attorney no later than 5 business
366	366	336days after receipt of the certification, translation, or opinion of counsel; and
367	367	337 (3) a person may not require an additional or different form of power of
368	368	338attorney for authority granted in the power of attorney presented.
369	369	339 (b) A person is not required to accept an acknowledged power of attorney if:
370	370	340 (1) the person is not otherwise required to engage in a transaction with the
371	371	341principal in the same circumstances;
372	372	342 (2) engaging in a transaction with the agent or the principal in the same
373	373	343circumstances would be inconsistent with federal law;
374	374	344 (3) the person has actual knowledge of the termination of the agent’s
375	375	345authority or of the power of attorney before exercise of the power; 19 of 44
376	376	346 (4) a request for a certification, a translation, or an opinion of counsel
377	377	347under section 18 is refused;
378	378	348 (5) the person in good faith believes that the power is not valid or that the
379	379	349agent does not have the authority to perform the act requested, whether or not a certification, a
380	380	350translation, or an opinion of counsel under section 18 has been requested or provided; or
381	381	351 (6) the person makes, or has actual knowledge that another person has
382	382	352made, a report to the department of mental health or the executive office of elder affairs stating a
383	383	353good faith belief that the principal may be subject to physical or financial abuse, neglect,
384	384	354exploitation, or abandonment by the agent or a person acting for or with the agent.
385	385	355 (c) A person that refuses in violation of this section to accept an acknowledged
386	386	356power of attorney is subject to:
387	387	357 (1) a court order mandating acceptance of the power of attorney; and
388	388	358 (2) liability for reasonable attorney’s fees and costs incurred in any action
389	389	359or proceeding that confirms the validity of the power of attorney or mandates acceptance of the
390	390	360power of attorney.
391	391	361
392	392	362 Section 20. Unless displaced by a provision of this chapter, the principles of law and
393	393	363equity supplement this chapter.
394	394	364 20 of 44
395	395	365 Section 21. This chapter does not supersede any other law applicable to financial
396	396	366institutions or other entities, and the other law controls if inconsistent with this chapter.
397	397	367
398	398	368 Section 22. The remedies under this chapter are not exclusive and do not abrogate any
399	399	369right or remedy under the laws of the commonwealth other than this chapter.
400	400	370
401	401	371 Section 23. (a) An agent under a power of attorney may do the following on behalf of the
402	402	372principal or with the principal’s property only if the power of attorney expressly grants the agent
403	403	373the authority and exercise of the authority is not otherwise prohibited by another agreement or
404	404	374instrument to which the authority or property is subject:
405	405	375 (1) create, amend, revoke, or terminate an inter vivos trust;
406	406	376 (2) make a gift;
407	407	377 (3) create or change rights of survivorship;
408	408	378 (4) create or change a beneficiary designation;
409	409	379 (5) delegate authority granted under the power of attorney;
410	410	380 (6) waive the principal’s right to be a beneficiary of a joint and survivor
411	411	381annuity, including a survivor benefit under a retirement plan;
412	412	382 (7) exercise fiduciary powers that the principal has authority to delegate; 21 of 44
413	413	383 (8) exercise authority over the content of electronic communications, as
414	414	384defined in 18 U.S.C. Section 2510(12) sent or received by the principal; or
415	415	385 (9) disclaim property, including a power of appointment.
416	416	386 (b) Notwithstanding a grant of authority to do an act described in subsection (a),
417	417	387unless the power of attorney otherwise provides, an agent that is not an ancestor, spouse, or
418	418	388descendant of the principal, may not exercise authority under a power of attorney to create in the
419	419	389agent, or in an individual to whom the agent owes a legal obligation of support, an interest in the
420	420	390principal’s property, whether by gift, right of survivorship, beneficiary designation, disclaimer,
421	421	391or otherwise.
422	422	392 (c) Subject to subsections (a), (b), (d), and (e), if a power of attorney grants to an
423	423	393agent authority to do all acts that a principal could do, the agent has the general authority
424	424	394described in Sections 26 through 38.
425	425	395 (d) Unless the power of attorney otherwise provides, a grant of authority to make
426	426	396a gift is subject to Section 39.
427	427	397 (e) Subject to subsections (a), (b), and (d), if the subjects over which authority is
428	428	398granted in a power of attorney are similar or overlap, the broadest authority controls.
429	429	399 (f) Authority granted in a power of attorney is exercisable with respect to property
430	430	400that the principal has when the power of attorney is executed or acquires later, whether or not the
431	431	401property is located in this state and whether or not the authority is exercised or the power of
432	432	402attorney is executed in this state. 22 of 44
433	433	403 (g) An act performed by an agent pursuant to a power of attorney has the same
434	434	404effect and inures to the benefit of and binds the principal and the principal’s successors in
435	435	405interest as if the principal had performed the act.
436	436	406
437	437	407 Section 24. (a) An agent has authority described in this chapter if the power of attorney
438	438	408refers to general authority with respect to the descriptive term for the subjects stated in Sections
439	439	40926 to 39, inclusive, or cites the section in which the authority is described.
440	440	410 (b) A reference in a power of attorney to general authority with respect to the
441	441	411descriptive term for a subject in Sections 26 to 39, inclusive, or a citation to a section of Sections
442	442	41226 to 39, inclusive, incorporates the entire section as if it were set out in full in the power of
443	443	413attorney.
444	444	414 (c) A principal may modify authority incorporated by reference.
445	445	415
446	446	416 Section 25. Except as otherwise provided in the power of attorney, by executing a power
447	447	417of attorney that incorporates by reference a subject described in Sections 26 to 39, inclusive, or
448	448	418that grants to an agent authority to do all acts that a principal could do pursuant to subsection (c)
449	449	419of Section 15, a principal authorizes the agent, with respect to that subject, to:
450	450	420 (i) demand, receive and obtain by litigation or otherwise, money or another thing
451	451	421of value to which the principal is, may become, or claims to be entitled and conserve, invest,
452	452	422disburse or use anything so received or obtained for the purposes intended; 23 of 44
453	453	423 (ii) contract in any manner with any person, on terms agreeable to the agent, to
454	454	424accomplish a purpose of a transaction and perform, rescind, cancel, terminate, reform, restate,
455	455	425release or modify the contract or another contract made by or on behalf of the principal;
456	456	426 (iii) execute, acknowledge, seal, deliver, file or record any instrument or
457	457	427communication the agent considers desirable to accomplish a purpose of a transaction, including
458	458	428creating at any time a schedule listing some or all of the principal’s property and attaching it to
459	459	429the power of attorney;
460	460	430 (iv) initiate, participate in, submit to alternative dispute resolution, settle, oppose
461	461	431or propose or accept a compromise with respect to a claim existing in favor of or against the
462	462	432principal or intervene in litigation relating to the claim;
463	463	433 (v) seek on the principal’s behalf the assistance of a court or other governmental
464	464	434agency to carry out an act authorized in the power of attorney;
465	465	435 (vi) engage, compensate, and discharge an attorney, accountant, discretionary
466	466	436investment manager, expert witness or other advisor;
467	467	437 (vii) prepare, execute, and file a record, report or other document to safeguard or
468	468	438promote the principal’s interest under a statute or regulation;
469	469	439 (viii) communicate with any representative or employee of a government or
470	470	440governmental subdivision, agency or instrumentality, on behalf of the principal;
471	471	441 (ix) access communications intended for, and communicate on behalf of the
472	472	442principal, whether by mail, electronic transmission, telephone or other means; and 24 of 44
473	473	443 (x) do any lawful act with respect to the subject and all property related to the
474	474	444subject.
475	475	445
476	476	446 Section 26. Unless the power of attorney otherwise provides, language in a power of
477	477	447attorney granting general authority with respect to real property authorizes the agent to:
478	478	448 (i) demand, buy, lease, receive, accept as a gift or as security for an extension of
479	479	449credit or otherwise acquire or reject an interest in real property or a right incident to real
480	480	450property;
481	481	451 (ii) sell; exchange; convey with or without covenants, representations or
482	482	452warranties; quitclaim; release; surrender; retain title for security; encumber; partition; consent to
483	483	453partitioning; subject to an easement or covenant; subdivide; apply for zoning or other
484	484	454governmental permits; plat or consent to platting; develop; grant an option concerning; lease;
485	485	455sublease; contribute to an entity in exchange for an interest in that entity; or otherwise grant or
486	486	456dispose of an interest in real property or a right incident to real property;
487	487	457 (iii) pledge or mortgage an interest in real property or right incident to real
488	488	458property as security to borrow money or pay, renew or extend the time of payment of a debt of
489	489	459the principal or a debt guaranteed by the principal;
490	490	460 (iv) release, assign, satisfy or enforce by litigation or otherwise a mortgage, deed
491	491	461of trust, conditional sale contract, encumbrance, lien or other claim to real property which exists
492	492	462or is asserted; 25 of 44
493	493	463 (v) manage or conserve an interest in real property or a right incident to real
494	494	464property owned or claimed to be owned by the principal, including:
495	495	465 (A) insuring against liability or casualty or other loss;
496	496	466 (B) obtaining or regaining possession of or protecting the interest or right
497	497	467by litigation or otherwise;
498	498	468 (C) paying, assessing, compromising, or contesting taxes or assessments
499	499	469or applying for and receiving refunds in connection with them; and
500	500	470 (D) purchasing supplies, hiring assistance or labor, and making repairs or
501	501	471alterations to the real property;
502	502	472 (vi) use, develop, alter, replace, remove, erect or install structures or other
503	503	473improvements upon real property in or incident to which the principal has, or claims to have, an
504	504	474interest or right;
505	505	475 (vii) participate in a reorganization with respect to real property or an entity that
506	506	476owns an interest in or right incident to real property and receive, and hold, and act with respect to
507	507	477stocks and bonds or other property received in a plan of reorganization, including:
508	508	478 (A) selling or otherwise disposing of them;
509	509	479 (B) exercising or selling an option, right of conversion or similar right
510	510	480with respect to them; and
511	511	481 (C) exercising any voting rights in person or by proxy; 26 of 44
512	512	482 (viii) change the form of title of an interest in or right incident to real property;
513	513	483and
514	514	484 (ix) dedicate to public use, with or without consideration, easements or other real
515	515	485property in which the principal has, or claims to have, an interest.
516	516	486
517	517	487 Section 27. Unless the power of attorney otherwise provides, language in a power of
518	518	488attorney granting general authority with respect to tangible personal property authorizes the
519	519	489agent to:
520	520	490 (i) demand, buy, receive, accept as a gift or as security for an extension of credit
521	521	491or otherwise acquire or reject ownership or possession of tangible personal property or an
522	522	492interest in tangible personal property;
523	523	493 (ii) sell; exchange; convey with or without covenants, representations or
524	524	494warranties; quitclaim; release; surrender; create a security interest in; grant options concerning;
525	525	495lease; sublease; or, otherwise dispose of tangible personal property or an interest in tangible
526	526	496personal property;
527	527	497 (iii) grant a security interest in tangible personal property or an interest in
528	528	498tangible personal property as security to borrow money or pay, renew or extend the time of
529	529	499payment of a debt of the principal or a debt guaranteed by the principal;
530	530	500 (iv) release, assign, satisfy or enforce by litigation or otherwise, a security
531	531	501interest, lien or other claim on behalf of the principal, with respect to tangible personal property
532	532	502or an interest in tangible personal property; 27 of 44
533	533	503 (v) manage or conserve tangible personal property or an interest in tangible
534	534	504personal property on behalf of the principal, including:
535	535	505 (A) insuring against liability or casualty or other loss;
536	536	506 (B) obtaining or regaining possession of or protecting the property or
537	537	507interest, by litigation or otherwise;
538	538	508 (C) paying, assessing, compromising or contesting taxes or assessments
539	539	509or applying for and receiving refunds in connection with taxes or assessments;
540	540	510 (D) moving the property from place to place;
541	541	511 (E) storing the property for hire or on a gratuitous bailment; and
542	542	512 (F) using and making repairs, alterations or improvements to the property;
543	543	513and
544	544	514 (vi) change the form of title of an interest in tangible personal property.
545	545	515
546	546	516 Section 28. Unless the power of attorney otherwise provides, language in a power of
547	547	517attorney granting general authority with respect to stocks and bonds authorizes the agent to:
548	548	518 (i) buy, sell and exchange stocks and bonds;
549	549	519 (ii) establish, continue, modify or terminate an account with respect to stocks and
550	550	520bonds; 28 of 44
551	551	521 (iii) pledge stocks and bonds as security to borrow, pay, renew or extend the time
552	552	522of payment of a debt of the principal;
553	553	523 (iv) receive certificates and other evidences of ownership with respect to stocks
554	554	524and bonds; and
555	555	525 (v) exercise voting rights with respect to stocks and bonds in person or by proxy,
556	556	526enter into voting trusts and consent to limitations on the right to vote.
557	557	527
558	558	528 Section 29. Unless the power of attorney otherwise provides, language in a power of
559	559	529attorney granting general authority with respect to commodities and options authorizes the agent
560	560	530to:
561	561	531 (i) buy, sell, exchange, assign, settle and exercise commodity futures contracts
562	562	532and call or put options on stocks or stock indexes traded on a regulated option exchange; and
563	563	533 (ii) establish, continue, modify and terminate option accounts.
564	564	534
565	565	535 Section 30. Unless the power of attorney otherwise provides, language in a power of
566	566	536attorney granting general authority with respect to banks and other financial institutions
567	567	537authorizes the agent to:
568	568	538 (i) continue, modify and terminate an account or other banking arrangement
569	569	539made by or on behalf of the principal; 29 of 44
570	570	540 (ii) establish, modify and terminate an account or other banking arrangement
571	571	541with a bank, trust company, savings and loan association, credit union, thrift company, brokerage
572	572	542firm or other financial institution selected by the agent;
573	573	543 (iii) contract for services available from a financial institution, including renting a
574	574	544safe deposit box or space in a vault;
575	575	545 (iv) withdraw, by check, order, electronic funds transfer or otherwise, money or
576	576	546property of the principal deposited with or left in the custody of a financial institution;
577	577	547 (v) receive statements of account, vouchers, notices and similar documents from
578	578	548a financial institution and act with respect to them;
579	579	549 (vi) enter a safe deposit box or vault and withdraw or add to the contents;
580	580	550 (vii) borrow money and pledge as security personal property of the principal
581	581	551necessary to borrow money or pay, renew or extend the time of payment of a debt of the
582	582	552principal or a debt guaranteed by the principal;
583	583	553 (viii) make, assign, draw, endorse, discount, guarantee and negotiate promissory
584	584	554notes, checks, drafts and other negotiable or nonnegotiable paper of the principal or payable to
585	585	555the principal or the principal’s order, transfer money, receive the cash or other proceeds of those
586	586	556transactions and accept a draft drawn by a person upon the principal and pay it when due;
587	587	557 (ix) receive for the principal and act upon a sight draft, warehouse receipt or
588	588	558other document of title whether tangible or electronic, or other negotiable or nonnegotiable
589	589	559instrument; 30 of 44
590	590	560 (x) apply for, receive, and use letters of credit, credit and debit cards, electronic
591	591	561transaction authorizations and traveler’s checks from a financial institution and give an
592	592	562indemnity or other agreement in connection with letters of credit; and
593	593	563 (xi) consent to an extension of the time of payment with respect to commercial
594	594	564paper or a financial transaction with a financial institution.
595	595	565
596	596	566 Section 31. Subject to the terms of a document or an agreement governing an entity or an
597	597	567entity ownership interest, and unless the power of attorney otherwise provides, language in a
598	598	568power of attorney granting general authority with respect to operation of an entity or business
599	599	569authorizes the agent to:
600	600	570 (i) operate, buy, sell, enlarge, reduce or terminate an ownership interest;
601	601	571 (ii) perform a duty or discharge a liability and exercise in person or by proxy a
602	602	572right, power, privilege or option that the principal has, may have, or claims to have;
603	603	573 (iii) enforce the terms of an ownership agreement;
604	604	574 (iv) initiate, participate in, submit to alternative dispute resolution, settle, oppose
605	605	575or propose or accept a compromise with respect to litigation to which the principal is a party
606	606	576because of an ownership interest;
607	607	577 (v) exercise in person or by proxy, or enforce by litigation or otherwise, a right,
608	608	578power, privilege or option the principal has or claims to have as the holder of stocks and bonds; 31 of 44
609	609	579 (vi) initiate, participate in, submit to alternative dispute resolution, settle, oppose,
610	610	580or propose or accept a compromise with respect to litigation to which the principal is a party
611	611	581concerning stocks and bonds;
612	612	582 (vii) with respect to an entity or business owned solely by the principal:
613	613	583 (A) continue, modify, renegotiate, extend and terminate a contract made
614	614	584by or on behalf of the principal with respect to the entity or business before execution of the
615	615	585power of attorney;
616	616	586 (B) determine:
617	617	587 (1) the location of its operation;
618	618	588 (2) the nature and extent of its business;
619	619	589 (3) the methods of manufacturing, selling, merchandising,
620	620	590financing, accounting and advertising employed in its operation;
621	621	591 (4) the amount and types of insurance carried; and
622	622	592 (5) the mode of engaging, compensating, and dealing with its
623	623	593employees and accountants, attorneys or other advisors;
624	624	594 (C) change the name or form of organization under which the entity or
625	625	595business is operated and enter into an ownership agreement with other persons to take over all or
626	626	596part of the operation of the entity or business; and 32 of 44
627	627	597 (D) demand and receive money due or claimed by the principal or on the
628	628	598principal’s behalf in the operation of the entity or business and control and disburse the money in
629	629	599the operation of the entity or business;
630	630	600 (viii) put additional capital into an entity or business in which the principal has an
631	631	601interest;
632	632	602 (ix) join in a plan of reorganization, consolidation, conversion, domestication, or
633	633	603merger of the entity or business;
634	634	604 (x) sell or liquidate all or part of an entity or business;
635	635	605 (xi) establish the value of an entity or business under a buy-out agreement to
636	636	606which the principal is a party;
637	637	607 (xii) prepare, sign, file and deliver reports, compilations of information, returns,
638	638	608or other papers with respect to an entity or business and make related payments; and
639	639	609 (xiii) pay, compromise, or contest taxes, assessments, fines or penalties and
640	640	610perform any other act to protect the principal from illegal or unnecessary taxation, assessments,
641	641	611fines or penalties, with respect to an entity or business, including attempts to recover, in any
642	642	612manner permitted by law, money paid before or after the execution of the power of attorney.
643	643	613
644	644	614 Section 32. Unless the power of attorney otherwise provides, language in a power of
645	645	615attorney granting general authority with respect to insurance and annuities authorizes the agent
646	646	616to: 33 of 44
647	647	617 (i) continue, pay the premium or make a contribution on, modify, exchange,
648	648	618rescind, release, or terminate a contract procured by or on behalf of the principal which insures
649	649	619or provides an annuity to either the principal or another person, whether or not the principal is a
650	650	620beneficiary under the contract;
651	651	621 (ii) procure new, different and additional contracts of insurance and annuities for
652	652	622the principal and the principal’s spouse, children and other dependents, and select the amount,
653	653	623type of insurance or annuity and mode of payment;
654	654	624 (iii) pay the premium or make a contribution on, modify, exchange, rescind,
655	655	625release or terminate a contract of insurance or annuity procured by the agent;
656	656	626 (iv) apply for and receive a loan secured by a contract of insurance or annuity;
657	657	627 (v) surrender and receive the cash surrender value on a contract of insurance or
658	658	628annuity;
659	659	629 (vi) exercise an election;
660	660	630 (vii) exercise investment powers available under a contract of insurance or
661	661	631annuity;
662	662	632 (viii) change the manner of paying premiums on a contract of insurance or
663	663	633annuity;
664	664	634 (ix) change or convert the type of insurance or annuity with respect to which the
665	665	635principal has or claims to have authority described in this section; 34 of 44
666	666	636 (x) apply for and procure a benefit or assistance under a statute or regulation to
667	667	637guarantee or pay premiums of a contract of insurance on the life of the principal;
668	668	638 (xi) collect, sell, assign, hypothecate, borrow against or pledge the interest of the
669	669	639principal in a contract of insurance or annuity;
670	670	640 (xii) select the form and timing of the payment of proceeds from a contract of
671	671	641insurance or annuity; and
672	672	642 (xiii) pay, from proceeds or otherwise, compromise or contest and apply for
673	673	643refunds in connection with, a tax or assessment levied by a taxing authority with respect to a
674	674	644contract of insurance or annuity or its proceeds or liability accruing by reason of the tax or
675	675	645assessment.
676	676	646 Section 33. (a) In this section, “estate, trust, or other beneficial interest” means a trust,
677	677	647probate estate, guardianship, conservatorship, escrow or custodianship or a fund from which the
678	678	648principal is, may become or claims to be, entitled to a share or payment.
679	679	649 (b) Unless the power of attorney otherwise provides, language in a power of attorney
680	680	650granting general authority with respect to estates, trusts, and other beneficial interests authorizes
681	681	651the agent to:
682	682	652 (1) accept, receive, receipt for, sell, assign, pledge or exchange a share in or
683	683	653payment from an estate, trust, or other beneficial interest;
684	684	654 (2) demand or obtain money or another thing of value to which the principal is,
685	685	655may become or claims to be, entitled by reason of an estate, trust or other beneficial interest, by
686	686	656litigation or otherwise; 35 of 44
687	687	657 (3) exercise for the benefit of the principal a presently exercisable general power
688	688	658of appointment held by the principal;
689	689	659 (4) initiate, participate in, submit to alternative dispute resolution, settle, oppose,
690	690	660or propose or accept a compromise with respect to litigation to ascertain the meaning, validity or
691	691	661effect of a deed, will, declaration of trust or other instrument or transaction affecting the interest
692	692	662of the principal;
693	693	663 (5) initiate, participate in, submit to alternative dispute resolution, settle, oppose,
694	694	664or propose or accept a compromise with respect to litigation to remove, substitute, or surcharge a
695	695	665fiduciary;
696	696	666 (6) conserve, invest, disburse or use anything received for an authorized purpose;
697	697	667 (7) transfer an interest of the principal in real property, stocks and bonds,
698	698	668accounts with financial institutions or securities intermediaries, insurance, annuities and other
699	699	669property to the trustee of a revocable trust created by the principal as settlor; and
700	700	670 (8) reject, renounce, disclaim, release, or consent to a reduction in or
701	701	671modification of a share in or payment from an estate, trust or other beneficial interest.
702	702	672
703	703	673 Section 34. Unless the power of attorney otherwise provides, language in a power of
704	704	674attorney granting general authority with respect to claims and litigation authorizes the agent to:
705	705	675 (i) assert and maintain before a court or administrative agency a claim, claim for
706	706	676relief, cause of action, counterclaim, offset, recoupment or defense, including an action to 36 of 44
707	707	677recover property or other thing of value, recover damages sustained by the principal, eliminate or
708	708	678modify tax liability, or seek an injunction, specific performance or other relief;
709	709	679 (ii) bring an action to determine adverse claims or intervene or otherwise
710	710	680participate in litigation;
711	711	681 (iii) seek an attachment, garnishment, order of arrest or other preliminary,
712	712	682provisional or intermediate relief and use an available procedure to effect or satisfy a judgment,
713	713	683order or decree;
714	714	684 (iv) make or accept a tender, offer of judgment or admission of facts, submit a
715	715	685controversy on an agreed statement of facts, consent to examination, and bind the principal in
716	716	686litigation;
717	717	687 (v) submit to alternative dispute resolution, settle and propose or accept a
718	718	688compromise;
719	719	689 (vi) waive the issuance and service of process upon the principal, accept service
720	720	690of process, appear for the principal, designate persons upon which process directed to the
721	721	691principal may be served, execute and file or deliver stipulations on the principal’s behalf, verify
722	722	692pleadings, seek appellate review, procure and give surety and indemnity bonds, contract and pay
723	723	693for the preparation and printing of records and briefs, receive, execute and file or deliver a
724	724	694consent, waiver, release, confession of judgment, satisfaction of judgment, notice, agreement or
725	725	695other instrument in connection with the prosecution, settlement or defense of a claim or
726	726	696litigation; 37 of 44
727	727	697 (vii) act for the principal with respect to bankruptcy or insolvency, whether
728	728	698voluntary or involuntary, concerning the principal or some other person, or with respect to a
729	729	699reorganization, receivership or application for the appointment of a receiver or trustee which
730	730	700affects an interest of the principal in property or other thing of value;
731	731	701 (viii) pay a judgment, award or order against the principal or a settlement made in
732	732	702connection with a claim or litigation; and
733	733	703 (ix) receive money or other thing of value paid in settlement of or as proceeds of
734	734	704a claim or litigation.
735	735	705
736	736	706 Section 35. (a) Unless the power of attorney otherwise provides, language in a power of
737	737	707attorney granting general authority with respect to personal and family maintenance authorizes
738	738	708the agent to:
739	739	709 (1) perform the acts necessary to maintain the customary standard of
740	740	710living of the principal, the principal’s spouse and the following individuals, whether living when
741	741	711the power of attorney is executed or later born:
742	742	712 (A) the principal’s children;
743	743	713 (B) other individuals legally entitled to be supported by the
744	744	714principal; and
745	745	715 (C) the individuals whom the principal has customarily supported
746	746	716or indicated the intent to support; 38 of 44
747	747	717 (2) make periodic payments of child support and other family maintenance
748	748	718required by a court or governmental agency or an agreement to which the principal is a party;
749	749	719 (3) provide living quarters for the individuals described in clause (1) by:
750	750	720 (A) purchase, lease or other contract; or
751	751	721 (B) paying the operating costs, including interest, amortization
752	752	722payments, repairs, improvements and taxes, for premises owned by the principal or occupied by
753	753	723those individuals;
754	754	724 (4) provide normal domestic help, usual vacations and travel expenses,
755	755	725and funds for shelter, clothing, food, appropriate education, including postsecondary and
756	756	726vocational education and other current living costs for the individuals described in clause (1);
757	757	727 (5) pay expenses for necessary health care and custodial care on behalf of
758	758	728the individuals described in clause (1);
759	759	729 (6) act as the principal’s personal representative pursuant to the Health
760	760	730Insurance Portability and Accountability Act, Sections 1171 through 1179 of the Social Security
761	761	731Act, 42 U.S.C. Section 1320d and applicable regulations, in making decisions related to the past,
762	762	732present, or future payment for the provision of health care consented to by the principal or
763	763	733anyone authorized under the law of this state to consent to health care on behalf of the principal;
764	764	734 (7) continue any provision made by the principal for automobiles or other
765	765	735means of transportation, including registering, licensing, insuring and replacing them, for the
766	766	736individuals described in clause (1); 39 of 44
767	767	737 (8) maintain credit and debit accounts for the convenience of the
768	768	738individuals described in clause (1) and open new accounts; and
769	769	739 (9) continue payments incidental to the membership or affiliation of the
770	770	740principal in a religious institution, club, society, order or other organization or to continue
771	771	741contributions to those organizations.
772	772	742 (b) Authority with respect to personal and family maintenance is neither
773	773	743dependent upon, nor limited by, authority that an agent may or may not have with respect to gifts
774	774	744under this chapter.
775	775	745
776	776	746 Section 36. Unless the power of attorney otherwise provides, language in a power of
777	777	747attorney granting general authority with respect to benefits from governmental programs or civil
778	778	748or military service authorizes the agent to:
779	779	749 (i) execute vouchers in the name of the principal for allowances and
780	780	750reimbursements payable by the United States or a foreign government or by a state or
781	781	751subdivision of a state to the principal, including allowances and reimbursements for
782	782	752transportation of the individuals described in clause (1) of subsection (a) of section 35, and for
783	783	753shipment of their household effects;
784	784	754 (ii) take possession and order the removal and shipment of property of the
785	785	755principal from a post, warehouse, depot, dock or other place of storage or safekeeping, either
786	786	756governmental or private and execute and deliver a release, voucher, receipt, bill of lading,
787	787	757shipping ticket, certificate or other instrument for that purpose; 40 of 44
788	788	758 (iii) enroll in, apply for, select, reject, change, amend or discontinue, on
789	789	759the principal’s behalf, a benefit or program;
790	790	760 (iv) prepare, file, and maintain a claim of the principal for a benefit or
791	791	761assistance, financial or otherwise, to which the principal may be entitled under a statute or
792	792	762regulation;
793	793	763 (v) initiate, participate in, submit to alternative dispute resolution, settle,
794	794	764oppose or propose or accept a compromise with respect to litigation concerning any benefit or
795	795	765assistance the principal may be entitled to receive under a statute or regulation; and
796	796	766 (vi) receive the financial proceeds of a claim described in clause (iv) and
797	797	767conserve, invest, disburse or use for a lawful purpose anything so received.
798	798	768
799	799	769 Section 37. Unless the power of attorney otherwise provides, language in a power of
800	800	770attorney granting general authority with respect to retirement plans authorizes the agent to:
801	801	771 (i) select the form and timing of payments under a retirement plan and
802	802	772withdraw benefits from a plan;
803	803	773 (ii) make a rollover, including a direct trustee-to-trustee rollover, of
804	804	774benefits from one retirement plan to another;
805	805	775 (iii) establish a retirement plan in the principal’s name;
806	806	776 (iv) make contributions to a retirement plan;
807	807	777 (v) exercise investment powers available under a retirement plan; and 41 of 44
808	808	778 (vi) borrow from, sell assets to, or purchase assets from a retirement plan.
809	809	779
810	810	780 Section 38. Unless the power of attorney otherwise provides, language in a power of
811	811	781attorney granting general authority with respect to taxes authorizes the agent to:
812	812	782 (i) prepare, sign, and file federal, state, local and foreign income, gift, payroll,
813	813	783property, Federal Insurance Contributions Act and other tax returns, claims for refunds, requests
814	814	784for extension of time, petitions regarding tax matters and any other tax-related documents,
815	815	785including receipts, offers, waivers, consents, including consents and agreements under Internal
816	816	786Revenue Code Section 2032A, 26 U.S.C. Section 2032A, closing agreements and any power of
817	817	787attorney required by the Internal Revenue Service or other taxing authority with respect to a tax
818	818	788year upon which the statute of limitations has not run and the following 25 tax years;
819	819	789 (ii) pay taxes due, collect refunds, post bonds, receive confidential information
820	820	790and contest deficiencies determined by the Internal Revenue Service or other taxing authority;
821	821	791 (iii) exercise any election available to the principal under federal, state, local or
822	822	792foreign tax law; and
823	823	793 (iv) act for the principal in all tax matters for all periods before the Internal
824	824	794Revenue Service, or other taxing authority.
825	825	795
826	826	796 Section 39. (a) In this section, a gift “for the benefit of” a person includes a gift to a trust,
827	827	797an account under the Uniform Transfers to Minors Act (1983/1986) and a tuition savings account 42 of 44
828	828	798or prepaid tuition plan as defined under Internal Revenue Code Section 529, 26 U.S.C. Section
829	829	799529.
830	830	800 (b) Unless the power of attorney otherwise provides, language in a power of
831	831	801attorney granting general authority with respect to gifts authorizes the agent only to:
832	832	802 (1) make outright to, or for the benefit of, a person, a gift of any of the
833	833	803principal’s property, including by the exercise of a presently exercisable general power of
834	834	804appointment held by the principal, in an amount per donee not to exceed the annual dollar limits
835	835	805of the federal gift tax exclusion under Internal Revenue Code Section 2503(b), 26 U.S.C. Section
836	836	8062503(b), without regard to whether the federal gift tax exclusion applies to the gift, or if the
837	837	807principal’s spouse agrees to consent to a split gift pursuant to Internal Revenue Code Section
838	838	8082513, 26 U.S.C. 2513, in an amount per donee not to exceed twice the annual federal gift tax
839	839	809exclusion limit; and
840	840	810 (2) consent, pursuant to Internal Revenue Code Section 2513, 26 U.S.C.
841	841	811Section 2513, to the splitting of a gift made by the principal’s spouse in an amount per donee not
842	842	812to exceed the aggregate annual gift tax exclusions for both spouses.
843	843	813 (c) An agent may make a gift of the principal’s property only as the agent
844	844	814determines is consistent with the principal’s objectives if actually known by the agent and, if
845	845	815unknown, as the agent determines is consistent with the principal’s best interest based on all
846	846	816relevant factors, including:
847	847	817 (1) the value and nature of the principal’s property;
848	848	818 (2) the principal’s foreseeable obligations and need for maintenance; 43 of 44
849	849	819 (3) minimization of taxes, including income, estate, inheritance,
850	850	820generation-skipping transfer and gift taxes;
851	851	821 (4) eligibility for a benefit, a program or assistance under a statute or
852	852	822regulation; and
853	853	823 (5) the principal’s personal history of making or joining in making gifts.
854	854	824 Section 32. This chapter modifies, limits, and supersedes the federal Electronic
855	855	825Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not
856	856	826modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize
857	857	827electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C.
858	858	828Section 7003(b).
859	859	829
860	860	830 SECTION 2. Except as otherwise provided in this act, on June 30, 2022:
861	861	831 (1) this act applies to a power of attorney created before, on, or after June 30,
862	862	8322022;
863	863	833 (2) this act applies to a judicial proceeding concerning a power of attorney
864	864	834commenced on or after June 30, 2022;
865	865	835 (3) this act applies to a judicial proceeding concerning a power of attorney
866	866	836commenced before June 30, 2022 unless the court finds that application of a provision of this act
867	867	837would substantially interfere with the effective conduct of the judicial proceeding or prejudice
868	868	838the rights of a party, in which case that provision does not apply and the superseded law applies;
869	869	839and 44 of 44
870	870	840 (4) an act done before June 30, 2022 is not affected by this act.
871	871	841
872	872	842 SECTION 3. Sections 5-501 to 5-507, inclusive, of chapter 190B of the General Laws are
873	873	843hereby repealed.
874	874	844
875	875	845 SECTION 4. This act takes effect June 30, 2022.