Kentucky Enacts Provisions Regarding Uniform Power of Attorney Act

• May 12, 2018
• Robert Harrison

The Commonwealth of Kentucky enacted provisions relating to its Uniform Power of Attorney Act, these provisions are effective on July 13, 2018. Kentucky Revised Statutes Chapter 457 is established and adopts portions of the Uniform Power of Attorney Act of 2006.

KRS Chapter 457 defines “power of attorney” to mean “a writing or other record that grants authority to an agent to act in the place of the principal, whether or not the term power of attorney is used” (KRS 457 Section 2(7)).  A power of attorney is durable unless it expressly provides that it is terminated when the principal becomes incapacitated (KRS 457 Section 4).  “A power of attorney is effective when executed unless the principal provides in the power of attorney that it becomes effective at a future date or upon the occurrence of a future event or contingency” (KRS 457 Section 9(1)).   KRS 457 Section 10 outlines when a power of attorney terminates:

1. The principal dies
2. The principal become incapacitated (if not durable)
3. A court appoints a fiduciary charged with the management of the principals property
4. The principal revokes the power of attorney
5. The terms of the power of attorney indicate termination
6. The purpose of the power of attorney is accomplished
7. The principal revokes the agents authority
8. The agent dies, becomes incapacitated, or resigns

KRS Chapter 457 also contains sections that:

• detail the relationship between a power of attorney and a conservator or guardian
• outline when a power of attorney becomes effective
• establish rules for coagents and successor agents
• detail how an agent accepts his or her appointment, duties, and reimbursement and compensation
• address when an agent is liable and allow the principal to lower the standard of liability for an agent, with exceptions
• establish a list of persons who may petition the court to review the agent’s conduct
• detail how an agent can resign
• provide protections for persons who accept a power of attorney in good faith and impose liability for refusal to accept a power of attorney

The full text of KRS Chapter 457 can be found here: http://www.lrc.ky.gov/recorddocuments/bill/18RS/HB11/bill.pdf

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