Relates to requiring principals to notify co-trustees and co-beneficiaries of the signing of a power of attorney

◆ The sponsor's argument

Why James Skoufis says this is needed

This bill provides essential protections for trustees and beneficiaries in financial matters where they share a trust or financial agreement with others. Currently, a trustee or beneficiary can execute a power of attorney (POA) with a third party without notifying co-trustees or co-beneficiaries, creating a risk that an unauthorized agent could deplete the trust or financial assets. Therefore, this legislation mandates that any trustee or beneficiary who grants a POA must notify all co-trustees and co-beneficiaries in writing, ensuring transparency and safeguarding shared financial interests. If a principal cannot iden- tify or contact a co-beneficiary despite making good-faith efforts, they must formally attest to their attempts. By implementing this require- ment, the bill enhances accountability and prevents potential financial exploitation within shared trusts and financial agreements.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.