Power of Attorney – Duty to Account

When a power of attorney is at issue, the statute of limitations starts to run on either of the following:

1. The death of the principal;
2. A judicial accounting by the fiduciary; or
3. Open repudiation of trust by the fiduciary.

The latter requires proof of repudiation that is clear and made known to the beneficiaries . In In re Priestley, N.Y.L.J. Mar. 1, 2017, p27. Col 2 (Sur. Ct. Westchester Co.), the court held that the fiduciary relationship between the power of attorney and the decedent terminated on the decedent’s date of death, September 9, 2010, and that since the compulsory accounting proceeding was commenced on August 16, 2016 (just within the six year statute of limitations), it was not time-barred by the six statute of limitations and the power of attorney must account for her stewardship of the decedent’s assets.