Bill would revise power of attorney provisions

The Judiciary Committee heard testimony Feb. 15 on a bill that would revise power of attorney provisions.

LB1113, introduced by Norfolk Sen. Mike Flood, would provide definitions for various areas of authority that would be granted to a power of attorney agent and also would identify certain areas of authority that would be granted because of the propensity of such authority to dissipate the principal’s property or alter the principal’s estate plan.

The bill also contains statutory forms that would be used by lawyers and laypersons.

According to Flood, the bill would serve as a safeguard for the protection of a principal, an agent and persons who are asked to rely on an agent’s authority.

Eric Fish, legislative counsel for the Uniform Law Commission in Chicago, testified in support of the bill, saying the current power of attorney laws are very vague and do not provide agents much guidance.

The bill would clarify the agent’s rights and expectations, Fish said, which would serve as a safeguard against elder abuse and other forms of abuse by agents.

Bill Lindsay, an attorney from Omaha, also testified in support of the bill. One of the most significant points of the bill is that it would allow a person to accept an acknowledged power of attorney that is verified before a notary public or other individual authorized to take acknowledgments, Lindsay said.

“[The bill] would create a statutory form that would become more common in usage and would facilitate more acceptance of the power of attorney,” Lindsay said.

No opposing testimony was given and the committee took no immediate action on the bill.