5601.2 - Special rules for gifts.
§ 5601.2. Special rules for gifts. (a) General rule.--A principal may empower an agent to make a gift in a power of attorney only as provided in this section. (b) Limited gifts.--A principal may authorize an agent to make a limited gift as defined under section 5603(a)(2) (relating to implementation of power of attorney) by the inclusion of: (1) the language quoted in section 5602(a)(1) (relating to form of power of attorney); or (2) other language showing a similar intent on the part of the principal to empower the agent to make a limited gift. (c) Unlimited gifts.--A principal may authorize an agent to make any other gift only by specifically providing for and defining the agent's authority in the power of attorney. (d) Nature of gifts.--In the absence of a specific provision to the contrary in the power of attorney: (1) A power to make a limited gift shall be construed to empower the agent to make a gift to each donee either outright or in trust. (2) In the case of any gift to a minor, that gift may be made in trust or in accordance with Chapter 53 (relating to Pennsylvania Uniform Transfers to Minors Act) or section 5155 (relating to order of court). (3) In the case of any gift made in trust, the agent may execute a deed of trust for such purpose, designating one or more persons, including the agent, as original or successor trustees, or may make an addition to an existing trust. (4) In making any gift, the agent need not treat the donees equally or proportionately and may entirely exclude one or more permissible donees. (5) The pattern followed on the occasion of any gift need not be followed on the occasion of any other gift. (e) Equity.--An agent and the donee of a gift shall be liable as equity and justice may require to the extent that, as determined by the court, a gift made by the agent is inconsistent with prudent estate planning or financial management for the principal or with the known or probable intent of the principal with respect to disposition of the estate. (f) Third party.--No transfer agent, depository or other third party acting in good faith shall have any responsibility to see to the proper discharge of the agent's duty. (Oct. 12, 1999, P.L.422, No.39, eff. 60 days) 1999 Amendment. Act 39 added section 5601.2. See section 13(1), (4) and (8) of Act 39 in the appendix to this title for special provisions relating to applicability.