Recent changes were made to Pennsylvania’s power of attorney statute by Act 95 which was enacted in 2014 and amended Title 20, Chapter 56 of the PEF Code. All of the Act’s provisions have been effective since January 1, 2015.
PEF Code Section 5601.3(d)(1) provides that an agent shall not be required to disclose receipts, disbursements or transactions conducted on behalf of the principal unless ordered by the court, during the principal’s lifetime requested by the principal, the principal’s guardian, another fiduciary for the principal or a governmental agency, and after the death of the principal by the personal representative or a successor in interest to the principal’s estate.
The statute does not require an agent to disclose receipts, disbursements or transactions to an heir of the principal or a beneficiary under the principal’s will.
What to do? Petition to have a guardian appointed for the principal. The guardian clearly has standing. But this route has its own risks. What if the Petition is not granted and no guardian is appointed? Might the principal retaliate, for example, by disinheriting the petitioner?
We need more tools and more ways to hold agents accountable. The PA Supreme Court’s Elder Law Task Force suggested additional people be given legal standing to challenge the actions of someone given power of attorney. You can read the full report here. The task force noted that nearly half the states provide legal standing to others interested in the welfare of someone who has a power of attorney handling their affairs. It said that allowing more people to challenge a power of attorney’s actions could protect people from abuse.