Section 8.26 Standards for Fiduciary Obligations

• Library: Trusts and Powers 2013 Supp

J. (§8.26) Standards for Fiduciary Obligations

An attorney in fact who is granted general powers must exercise those powers in accordance with “the principal’s instructions, in the principal’s best interest, in good faith, prudently and in accordance with sections 404.712 and 404.714[, RSMo 2000,]” of the DPA Act. Section 404.710.5, RSMo 2000. Further, when acting for the principal, the attorney in fact must clearly indicate that the attorney in fact is operating in that capacity and must maintain the principal’s property in the principal’s name and keep the principal’s property separate from the attorney in fact’s property and the property of other people. Section 404.712.1. If the attorney in fact holds the property in the name of the attorney in fact as attorney in fact for the principal or as personal custodian for the principal, the attorney in fact has complied with the requirement to keep the principal’s property separate. Section 404.712.2.

Section 404.714.1 sets forth several fiduciary obligations of the attorney in fact. The attorney in fact has a duty to avoid self-dealing and conflicts of interest. Section 404.714.1. Without explicit authorization otherwise, the attorney in fact must exercise a high degree of care in maintaining any estate plan the principal may...