January 27, 2011, Introduced by Senator BIEDA and referred to the Committee on Judiciary.




     A bill to amend 1998 PA 386, entitled


"Estates and protected individuals code,"


by amending section 5501 (MCL 700.5501).




     Sec. 5501. (1) A durable power of attorney is a power of


attorney by which a principal designates another as the principal's


attorney in fact in a writing and the writing that contains the


words "This power of attorney is not affected by the principal's


subsequent disability or incapacity, or by the lapse of time", or


"This power of attorney is effective upon the disability or


incapacity of the principal", or similar words showing the


principal's intent that the authority conferred is exercisable


notwithstanding the principal's subsequent disability or incapacity


and, unless the power states a termination time, notwithstanding


the lapse of time since the execution of the instrument.


     (2) Before exercising authority as attorney in fact under a


durable power of attorney, a person shall sign an acceptance of the


designation, acknowledging and accepting all of the following


obligations, liabilities, and rights:


     (a) To act in the best interest of the principal.


     (b) To keep the principal informed of the attorney in fact's


actions and account to the principal.


     (c) To not make gifts of the principal's property unless


specifically authorized by the power of attorney.


     (d) To be prosecuted and punished for any criminal acts.


     (e) To keep the principal's assets in an account that does not


include money of the attorney in fact or another person.


     (f) To only use the principal's property and income for the


benefit of the principal, unless otherwise authorized specifically


in the power of attorney.


     (g) If requested, to provide an accounting at any time to the


principal, a fiduciary appointed on behalf of the principal, or the




     (h) To maintain sufficient records of every transaction and be


prepared to defend each action.


     (i) To be held financially responsible for any transaction


that is not specifically authorized in the power of attorney.


     (j) To hire an advisor, attorney, accountant, or other


professional as reasonably required to comply with the attorney in


fact's duties and to pay for the professional's services from the


estate of the principal.


     (k) Unless prohibited by the power of attorney, to receive


reasonable compensation for the attorney in fact's services, which


compensation may be subject to scrutiny by the court.