LD 1179
pg. 3
Page 2 of 4 An Act To Establish Duties for Persons Who Hold Durable Powers of Attorney or A... Page 4 of 4
Download Bill Text
LR 1122
Item 1

 
(2)__At the time of the determination, the principal lacks
the capacity to give or revoke a power of attorney; or

 
(3)__The termination of the power of attorney is in the best
interest of the principal.

 
If the power of attorney is revoked or terminated by the court,
the petitioner may request that the principal or the court
appoint a suitable person to serve as substitute agent under a
new power of attorney if the principal is competent but unable to
manage assets.__If the principal is incompetent and there is no
suitable private person available and willing to assume
responsibilities for asset management, the petition may seek a
public conservator in Probate Court pursuant to Part 6.

 
(g)__If a court determines that an agent has breached the
agent's fiduciary duties, misappropriated a principal's resources
or engaged in self-dealing, the court shall order prompt
restitution to the principal and, when appropriate, to the long-
term care facility from the agent's personal assets if necessary.__
In such a case, or if the agent fails without reasonable cause or
justification to submit an accounting or report as required by
the court under subsection (e), the court may order the agent to
pay reasonable attorney's fees and costs to the petitioner.__The
court may enter orders and take other action as appropriate to
the circumstances.

 
(h)__The duties of an agent under this section and any related
cause of action survive the death of the principal.__The cause of
action for breach of fiduciary duty or self-dealing is against
the agent individually.__The long-term care facility may also
file a claim for any uncompensated services against the
principal's estate following the principal's death.

 
Sec. 2. 22 MRSA §1826, sub-§2, ķI, as enacted by PL 1985, c. 291, §1,
is amended to read:

 
I. No contract or agreement may contain a provision which
that provides for the payment of attorneys' attorney's fees
or any other cost of collecting payments from the resident,
except that attorney's fees and costs may be collected
against any agent under a power of attorney who breaches the
agent's fiduciary duty as set forth in Title 18-A, section
5-510.

 
SUMMARY

 
This bill establishes duties on the part of persons who hold
durable powers of attorney or act as responsible parties for


Page 2 of 4 Top of Page Page 4 of 4