AN ACT

 

1Amending Title 20 (Decedents, Estates and Fiduciaries) of the
2Pennsylvania Consolidated Statutes, in orphans' court
3divisions, further providing for appointment and purpose and
4for compensation; and, in incapacitated persons, providing
5for venue and for confidentiality and disclosure of
6information; further providing for petition and hearing and
7independent evaluation; repealing provisions relating to
8county of appointment and qualifications; further providing
9for review hearing; providing for affidavit in uncontested 
10termination matters and for counsel; further providing for 
11emergency guardian; repealing provisions relating to 
12provisions similar to other estates; providing for removal 
13and discharge of guardian, for appointment of guardian in 
14conveyance and for bond; further providing for evidence of 
15incapacity, for cross-examination of witnesses and for 
16provisions concerning powers, duties and liabilities; 
17providing for protection of person dealing with guardian; and 
18further providing for when accounting filed, for 
19distributions of income and principal during incapacity and 
20for guardianship services.

21The General Assembly of the Commonwealth of Pennsylvania
22hereby enacts as follows:

23Section 1.  Section 751 of Title 20 of the Pennsylvania
24Consolidated Statutes is amended by adding paragraphs to read:

25§ 751.  Appointment; purpose.

26The orphans' court division may appoint:

27* * *

1(7)  Examiners of actions of guardian of estate.--By
2general rule or special order, an examiner to make periodic
3or special examinations of expenditures, disbursements and
4withdrawals of a guardian of the estate of an incapacitated
5person and to require the guardian of the estate to present
6financial records for examination.

7(8)  Mediators or arbitrators.--A mediator or arbitrator
8if the parties desire mediation or arbitration but do not
9mutually agree on an independent mediator or arbitrator. The
10meeting place shall be in this Commonwealth in a location
11selected by the mediator or arbitrator. The mediator or
12arbitrator may extend the date of the meeting for good cause
13shown by either party or upon stipulation of both parties.
14All files, records, reports, documents or other papers
15received or prepared by the mediator or arbitrator while
16serving as such shall be classified as confidential. Payment
17from an incapacitated person's estate for mediation or
18arbitration shall be subject to approval by the court.

19Section 2.  Section 752 of Title 20 is amended to read:

20§ 752.  Compensation.

21[The compensation of any master, auditor, examiner, guardian
22ad litem, or trustee ad litem, subject to any inconsistent
23general rule shall be paid from such source as the court shall
24direct.] Subject to any inconsistent general rule of court, the 
25compensation of any master, auditor, examiner, guardian ad litem 
26or trustee ad litem shall be paid from such source and in such 
27amounts as the court directs.

28Section 3.  Title 20 is amended by adding sections to read:

29§ 5503.  Venue.

30(a)  Applicability.--This section is subject to Chapter 59

1(relating to uniform adult guardianship and protective
2proceedings jurisdiction).

3(b)  Guardian of person.--Venue for a guardianship proceeding
4for an incapacitated person or an alleged incapacitated person
5is in the judicial district of this Commonwealth in which the
6person resides and, if the person has been admitted to an
7institution by order of a court of competent jurisdiction, in
8the judicial district in which the institution is located. Venue
9for the appointment of an emergency guardian of an incapacitated
10person or an alleged incapacitated person is also in the
11judicial district in which the person is present.

12(c)  Guardian of estate.--Venue for a proceeding regarding a
13guardianship of the estate of an incapacitated person or alleged
14incapacitated person is in the judicial district of this
15Commonwealth in which the incapacitated person or alleged
16incapacitated person resides, whether or not a guardian of the
17person has been appointed in another place or, if the person
18does not reside in this Commonwealth, in any judicial district
19of this Commonwealth in which property owned by the person is
20located.

21(d)  Multiple judicial districts.--If a proceeding under this
22chapter is brought in more than one judicial district in this
23Commonwealth, the court of the judicial district in which the
24proceeding is first brought has the exclusive right to proceed
25unless that court determines that venue is properly in another
26court or that the interests of justice otherwise require that
27the proceeding be transferred.

28§ 5504.  Confidentiality and disclosure of information.

29Confidentiality and the disclosure of information under this
30chapter shall be governed by applicable court rule or as the

1court determines. The Supreme Court may prescribe uniform rules
2relating to confidentiality and the disclosure of information.

3Section 4.  Section 5511(a), (e) and (f) of Title 20 are
4amended and the section is amended by adding subsections to
5read:

6§ 5511.  Petition and hearing; independent evaluation.

7[(a)  Resident.--The court, upon petition and hearing and
8upon the presentation of clear and convincing evidence, may find
9a person domiciled in the Commonwealth to be incapacitated and
10appoint a guardian or guardians of his person or estate. The
11petitioner may be any person interested in the alleged
12incapacitated person's welfare. The court may dismiss a
13proceeding where it determines that the proceeding has not been
14instituted to aid or benefit the alleged incapacitated person or
15that the petition is incomplete or fails to provide sufficient
16facts to proceed. Written notice of the petition and hearing
17shall be given in large type and in simple language to the
18alleged incapacitated person. The notice shall indicate the
19purpose and seriousness of the proceeding and the rights that
20can be lost as a result of the proceeding. It shall include the
21date, time and place of the hearing and an explanation of all
22rights, including the right to request the appointment of
23counsel and to have counsel appointed if the court deems it
24appropriate and the right to have such counsel paid for if it
25cannot be afforded. The Supreme Court shall establish a uniform
26citation for this purpose. A copy of the petition shall be
27attached. Personal service shall be made on the alleged
28incapacitated person, and the contents and terms of the petition
29shall be explained to the maximum extent possible in language
30and terms the individual is most likely to understand. Service

1shall be no less than 20 days in advance of the hearing. In
2addition, notice of the petition and hearing shall be given in
3such manner as the court shall direct to all persons residing
4within the Commonwealth who are sui juris and would be entitled
5to share in the estate of the alleged incapacitated person if he
6died intestate at that time, to the person or institution
7providing residential services to the alleged incapacitated
8person and to such other parties as the court may direct,
9including other service providers. The hearing may be closed to
10the public and without a jury unless the alleged incapacitated
11person or his counsel objects. The hearing shall be closed and
12with or without a jury if the person alleged to be incapacitated
13or his counsel so requests. The hearing may be held at the
14residence of the alleged incapacitated person. The alleged
15incapacitated person shall be present at the hearing unless:

16(1)  the court is satisfied, upon the deposition or
17testimony of or sworn statement by a physician or licensed
18psychologist, that his physical or mental condition would be
19harmed by his presence; or

20(2)  it is impossible for him to be present because of
21his absence from the Commonwealth. It shall not be necessary
22for the alleged incapacitated person to be represented by a
23guardian ad litem in the proceeding.

24Petitioner shall be required to notify the court at least seven
25days prior to the hearing if counsel has not been retained by or
26on behalf of the alleged incapacitated person. In appropriate
27cases, counsel shall be appointed to represent the alleged
28incapacitated person in any matter for which counsel has not
29been retained by or on behalf of that individual.]

30(a.1)  Resident.--

1(1)  Upon petition and hearing and the presentation of
2clear and convincing evidence, the court may find an
3individual domiciled in this Commonwealth to be incapacitated
4and appoint a guardian of the person or guardian of the
5estate for the individual.

6(2)  The petitioner under this subsection may be any
7person interested in the alleged incapacitated person's
8welfare. If the petitioner is a guardianship support agency,
9the petition shall disclose the agency's financial
10information and a list of its current guardianships.

11(3)  The court may dismiss a proceeding if it determines
12that:

13(i)  the proceeding has not been instituted to aid or
14benefit the alleged incapacitated person; or

15(ii)  the petition is incomplete or fails to provide
16sufficient facts to proceed.

17(4)  The Supreme Court shall establish a uniform citation
18for the written notice of the petition and hearing, which
19shall:

20(i)  Be given in large type and in simple language to
21the alleged incapacitated person.

22(ii)  Indicate the purpose and seriousness of the
23proceeding and the rights that can be lost as a result of
24the proceeding.

25(iii)  Include the date, time and place of the
26hearing and an explanation of all rights, including the
27appointment of counsel as set forth in subsection (a.2).

28(iv)  Be attached to the petition.

29(5)  Service of the petition and notice shall be as
30follows:

1(i)  Personal service of the petition and notice
2shall be made on the alleged incapacitated person. The
3contents and terms of the petition shall be explained to
4the maximum extent possible in language and terms the
5person is most likely to understand. Service shall be not
6less than 20 days in advance of the hearing.

7(ii)  Notice of the petition and hearing shall be
8given to the following in the manner as the court
9directs:

10(A)  Any person:

11(I)  whose existence and whereabouts are
12known or could be readily obtained;

13(II)  who is sui juris; and

14(III)  who would be entitled to share in the
15estate of the alleged incapacitated person if the
16person died intestate at that time.

17(B)  The person or institution providing
18residential services to the alleged incapacitated
19person.

20(C)  Another party as the court directs,
21including another service provider.

22(6)  The hearing:

23(i)  may be closed to the public and without a jury,
24unless the alleged incapacitated person or the person's
25counsel objects;

26(ii)  shall be closed to the public and with or
27without a jury, if the alleged incapacitated person or
28the person's counsel so requests; or

29(iii)  may be held at the residence of the alleged
30incapacitated person.

1(7)  The alleged incapacitated person shall be present at
2the hearing unless:

3(i)  upon the deposition or testimony of or sworn
4statement by a physician or licensed psychologist, the
5court is satisfied that the person's physical or mental
6condition would be harmed by being present, but the
7inability of the person to comprehend the proceedings
8does not, by itself, constitute harm; or

9(ii)  it is impossible for the person to be present
10because of the person's absence from this Commonwealth.
11It shall not be necessary for the person to be
12represented by a guardian ad litem in the proceeding.

13(8)  The court may grant standing to any person on whom
14the notice and petition are served under paragraph (5).

15(a.2)  Appointment of counsel.--

16(1)  If counsel has not been retained by or on behalf of
17the alleged incapacitated person, the petitioner under
18subsection (a) shall notify the court at least seven days
19prior to the hearing.

20(2)  The court shall appoint counsel to represent the
21alleged incapacitated person in any matter for which counsel
22has not been retained by or on behalf of the alleged
23incapacitated person:

24(i)  in appropriate cases as the court determines;
25and

26(ii)  in all cases in which the court knows in
27advance that the alleged incapacitated person is not
28expected to be present at the hearing, either in person
29or by videoconference.

30* * *

1(e)  Petition contents.--

2(1)  The petition, which shall be in plain language,
3shall include the name, age, residence and post office
4address of the alleged incapacitated person, the names and
5addresses of the spouse, parents and presumptive adult heirs
6of the alleged incapacitated person, the name and address of
7the person or institution providing residential services to
8the alleged incapacitated person, the names and addresses of
9other service providers, the name and address of the person
10or entity whom petitioner asks to be appointed guardian, an
11averment that the proposed guardian has no interest adverse
12to the alleged incapacitated person, the reasons why
13guardianship is sought, a description of the functional
14limitations and physical and mental condition of the alleged
15incapacitated person, the steps taken to find less
16restrictive alternatives, the specific areas of incapacity
17over which it is requested that the guardian be assigned
18powers and the qualifications of the proposed guardian.

19(2)  If a limited or plenary guardian of the estate is
20sought, the petition shall also include the gross value of
21the estate and net income from all sources to the extent
22known.

23(3)  A petition that is filed for the appointment of a 
24guardian of the person on or after (in preparing this act for 
25printing in the Laws of Pennsylvania and the Pennsylvania 
26Consolidated Statutes, the Legislative Reference Bureau shall 
27insert here, in lieu of this statement, the effective date of 
28this paragraph) shall state whether it is proposed that the 
29guardian of the person shall have the power to make health 
30care decisions and, if so, whether the guardian shall have 

1all the powers of a health care representative to make health 
2care decisions as defined under section 5422 (relating to 
3definitions), including decisions involving health care 
4necessary to preserve life if the incapacitated person were 
5to be in an end-stage medical condition or be permanently 
6unconscious, and any limitation of those powers.

7(f)  Who may be appointed guardian.--[The court may appoint
8as guardian any qualified individual, a corporate fiduciary, a
9nonprofit corporation, a guardianship support agency under
10Subchapter F (relating to guardianship support) or a county
11agency. In the case of residents of State facilities, the court
12may also appoint, only as guardian of the estate, the guardian
13office at the appropriate State facility. The court shall not
14appoint a person or entity providing residential services for a
15fee to the incapacitated person or any other person whose
16interests conflict with those of the incapacitated person except
17where it is clearly demonstrated that no guardianship support
18agency or other alternative exists. Any family relationship to
19such individual shall not, by itself, be considered as an
20interest adverse to the alleged incapacitated person. If
21appropriate, the court shall give preference to a nominee of the
22incapacitated person.]

23(1)  The court may appoint any one or more of the
24following to be an alleged incapacitated person's guardian of
25the person or guardian of the estate, or both:

26(i)  Any qualified individual.

27(ii)  A corporate fiduciary. If a person is a
28corporate entity doing business in this Commonwealth and
29serving as a guardian of the estate of an incapacitated
30person, the person shall have an office in this

1Commonwealth.

2(iii)  A nonprofit corporation.

3(iv)  A guardianship support agency under Subchapter
4F (relating to guardianship support).

5(v)  A county agency.

6(2)  If the alleged incapacitated person is a resident of
7a State facility, the court may appoint the guardian office
8at the facility as the alleged incapacitated person's
9guardian of the estate.

10(g)  Who may not be appointed guardian.--

11(1)  Subject to paragraph (2), unless it is clearly
12demonstrated that no guardianship support agency or other
13alternative exists, the court may not appoint the following
14as the alleged incapacitated person's guardian of the person
15or guardian of the estate:

16(i)  A person or entity providing residential
17services for a fee to the alleged incapacitated person.

18(ii)  Any other person whose interests conflict with
19those of the alleged incapacitated person.

20(2)  Any family relationship to the alleged incapacitated
21person shall not, by itself, be considered in conflict with
22the interest of the alleged incapacitated person.

23(h)  Preference in appointing guardian of person.--

24(1)  If a nomination regarding guardian of the person has
25been made in a power of attorney, the court may determine
26that an adjudication of incapacity is not necessary or that
27an adjudication of incapacity is necessary but the
28appointment of a guardian of the person is not necessary. If
29the court makes an adjudication of incapacity and determines
30that a guardian of the person shall be appointed, the court

1shall appoint the nominated person in accordance with the
2terms of the power of attorney or health care power of
3attorney, except for good cause or disqualification.

4(2)  Subject to paragraph (1), in appointing a qualified
5person to be guardian of the person, the court shall consider
6the following order of preference:

7(i)  A guardian, other than a temporary or emergency
8guardian, currently acting for the estate.

9(ii)  The spouse of the person.

10(iii)  An adult child of the person.

11(iv)  A parent of the person.

12(v)  The nominee of a deceased or living parent of an
13unmarried alleged incapacitated person.

14(vi)  Another suitable and qualified person.

15(3)  With respect to persons having equal preference, the
16court shall select the person or persons that it considers
17best qualified in that class.

18(4)  Subject to paragraph (1), in acting in the best
19interest of the alleged incapacitated person, the court may
20decline to appoint a person having a higher preference and
21appoint a person having a lower preference or no preference.

22(i)  Preference in appointing guardian of estate.--

23(1)  If a nomination regarding guardian of the estate has
24been made in a power of attorney, the court may determine
25that an adjudication of incapacity is not necessary or that
26an adjudication of incapacity is necessary but the
27appointment of a guardian of the estate is not necessary.
28Subject to paragraph (5), if the court makes an adjudication
29of incapacity and determines that a guardian of the estate
30shall be appointed, the court shall appoint the nominated

1person in accordance with the terms of the power of attorney,
2except for good cause or disqualification.

3(2)  Subject to paragraphs (1) and (5), in appointing a
4qualified person to be guardian of the estate, the court
5shall consider the following order of preference:

6(i)  A guardian, other than a temporary or emergency
7guardian, currently acting for the person.

8(ii)  The spouse of the person.

9(iii)  An adult child of the person.

10(iv)  A parent of the person.

11(v)  The nominee of a deceased or living parent of an
12unmarried alleged incapacitated person.

13(vi)  Another suitable and qualified person,
14including a corporate fiduciary, a nonprofit corporation,
15a guardianship support agency under Subchapter F and a
16county agency.

17(3)  With respect to persons having equal preference, the
18court shall select the person or persons that it considers
19best qualified in that class.

20(4)  Subject to paragraph (1), in acting in the best
21interest of the alleged incapacitated person, the court may
22decline to appoint a person having a higher preference and
23appoint a person having a lower preference or no preference.

24(5)  The court may appoint a corporate fiduciary or other
25appropriate person as a guardian of the estate of the
26incapacitated person in appropriate cases, if the
27incapacitated person's estate contains substantial assets or
28involves complex financial matters.

29Section 5.  Section 5512 of Title 20 is repealed:

30[§ 5512.  County of appointment; qualifications.

1(a)  Resident incapacitated person.--A guardian of the person
2or estate of an incapacitated person may be appointed by the
3court of the county in which the incapacitated person is
4domiciled, is a resident or is residing in a long-term care
5facility.

6(b)  Nonresident incapacitated person.--A guardian of the
7estate within the Commonwealth of an incapacitated person
8domiciled outside of the Commonwealth may be appointed by the
9court of the judicial district having jurisdiction of a
10decedent's estate or of a trust in which the incapacitated
11person has an interest. When the nonresident incapacitated
12person's estate is derived otherwise than from a decedent's
13estate or a trust within the Commonwealth, a guardian may be
14appointed by the court of any county where an asset of the
15incapacitated person is located.

16(c)  Exclusiveness of appointment.--When a court has
17appointed a guardian of the person or estate of an incapacitated
18person pursuant to subsection (a) or (b), no other court shall
19appoint a similar guardian for the incapacitated person within
20the Commonwealth.]

21Section 6.  Section 5512.2(a) of Title 20 is amended and the
22section is amended by adding a subsection to read:

23§ 5512.2.  Review hearing.

24(a)  Time of hearing.--The court may set a date for a review
25hearing in its order establishing the guardianship or hold a
26review hearing at any time it shall direct. The court shall
27conduct a review hearing promptly if the incapacitated person,
28guardian or any [interested party] person interested in the 
29incapacitated person's welfare petitions the court for a hearing
30for reason of a significant change in the person's capacity, a

1change in the need for guardianship services or the guardian's
2failure to perform his duties in accordance with the law or to
3act in the best interest of the incapacitated person. The court
4may dismiss a petition for review hearing if it determines that
5the petition is frivolous.

6* * *

7(c)  Independent evaluation.--In a review hearing under this
8section, the court may order an independent evaluation in
9accordance with section 5511(d) (relating to petition and
10hearing; independent evaluation).

11Section 7.  Title 20 is amended by adding sections to read:

12§ 5512.4.  Affidavit in uncontested termination matters.

13In an uncontested matter concerning the termination of a
14guardianship, whether or not a hearing is held regarding the
15termination, the court may terminate the guardianship based on
16an affidavit of the incapacitated person's attending physician
17stating that the guardianship is no longer necessary.

18§ 5512.5.  Counsel.

19Following an adjudication of incapacity, counsel for the
20incapacitated person acting as such before the individual was
21adjudicated incapacitated, or counsel subsequently engaged by or
22on behalf of the incapacitated person, may act on behalf of the
23incapacitated person for a matter or at any proceeding regarding
24the interest of the incapacitated person under this chapter. For
25cause shown, the court may terminate the services of counsel
26acting for an incapacitated person and appoint new counsel or a
27guardian ad litem for a proceeding for which the incapacitated
28person's interest is involved.

29Section 8.  Section 5513 of Title 20 is amended to read:

30§ 5513.  Emergency guardian.

1[Notwithstanding the provisions of section 5511 (relating to
2petition and hearing; independent evaluation), the court, upon
3petition and a hearing at which clear and convincing evidence is
4shown, may appoint an emergency guardian or guardians of the
5person or estate of a person alleged to be incapacitated, when
6it appears that the person lacks capacity, is in need of a
7guardian and a failure to make such appointment will result in
8irreparable harm to the person or estate of the alleged
9incapacitated person. The provisions of section 5511, including
10those relating to counsel, shall be applicable to such
11proceedings, except when the court has found that it is not
12feasible in the circumstances. An emergency guardian so
13appointed for the person or estate of an alleged incapacitated
14person shall only have and be subject to such powers, duties and
15liabilities and serve for such time as the court shall direct in
16its decree. An emergency order appointing an emergency guardian
17of the person may be in effect for up to 72 hours. If the
18emergency continues, then the emergency order may be extended
19for no more than 20 days from the expiration of the initial
20emergency order. After expiration of the emergency order or any
21extension, a full guardianship proceeding must be initiated
22pursuant to section 5511. The court may also appoint an
23emergency guardian of the person pursuant to this section for an
24alleged incapacitated person who is present in this Commonwealth
25but is domiciled outside of this Commonwealth, regardless of
26whether the alleged incapacitated person has property in this
27Commonwealth. An emergency order appointing an emergency
28guardian of the estate shall not exceed 30 days. After 30 days,
29a full guardianship proceeding must be initiated pursuant to
30section 5511.]

1(a)  Appointment.--

2(1)  Notwithstanding the provisions of section 5511
3(relating to petition and hearing; independent evaluation),
4upon petition and a hearing at which clear and convincing
5evidence is shown, the court may appoint an emergency
6guardian or guardians of the person or estate of a person
7alleged to be incapacitated, when it appears that:

8(i)  the person lacks capacity and is in need of a
9guardian; and

10(ii)  a failure to make such appointment will likely
11result in irreparable harm to the person or estate of the
12alleged incapacitated person.

13(2)  The court may appoint an emergency guardian of the
14person under this section for an alleged incapacitated person
15who is present in this Commonwealth but domiciled outside
16this Commonwealth, regardless of whether the alleged
17incapacitated person has property in this Commonwealth.

18(b)  Procedures and powers generally.--

19(1)  Each provision of section 5511 shall apply to
20proceedings under subsection (a), except:

21(i)  when the court has found that the application of
22the provision is not feasible under the circumstances; or

23(ii)  as otherwise provided in this section.

24(2)  An emergency guardian so appointed for the person or
25estate of an alleged incapacitated person shall only have and
26be subject to such powers, duties and liabilities and serve
27for such time as the court shall direct in its decree.

28(c)  Duration of initial order.--An initial emergency order
29appointing an emergency guardian of the person or guardian of
30the estate may be in effect for up to 30 days.

1(d)  Appointment of counsel.--

2(1)  Prior to the expiration of the initial emergency
3order, the court may appoint counsel for the alleged
4incapacitated person.

5(2)  If an extension of the emergency order is sought
6under subsection (e), the court shall appoint counsel for the
7alleged incapacitated person.

8(e)  Extension of order.--An emergency order may be extended
9for not more than an additional 60 days upon the consent of the
10petitioner, emergency guardian and counsel for the incapacitated
11person. At any time after the filing of the petition for
12emergency guardianship, upon a determination that the duration
13of incapacity of the alleged incapacitated person is likely to
14extend longer than the period of emergency guardianship
15permitted by this section, the court shall direct that the
16petitioner file a petition for a permanent guardianship of the
17person or a permanent guardianship of the estate, or both. In
18such a case, the period of extension of the emergency order
19shall be extended to the date of the order on the permanent
20guardianship petition.

21Section 9.  Section 5515 of Title 20 is repealed:

22[§ 5515.  Provisions similar to other estates.

23The provisions relating to a guardian of an incapacitated
24person and his surety shall be the same as are set forth in the
25following provisions of this title relating to a personal
26representative or a guardian of a minor and their sureties:

27Section 3182 (relating to grounds for removal).

28Section 3183 (relating to procedure for and effect of
29removal).

30Section 3184 (relating to discharge of personal

1representative and surety).

2Section 5115 (relating to appointment of guardian in
3conveyance).

4Section 5121 (relating to necessity, form and amount).

5Section 5122 (relating to when bond not required).

6Section 5123 (relating to requiring or changing amount of
7bond).]

8Section 10.  Title 20 is amended by adding sections to read:

9§ 5515.1.  Removal and discharge of guardian.

10(a)  Conditions.--The court has the exclusive power to remove
11a guardian of the person or guardian of the estate if either
12paragraph (1) or (2) applies:

13(1)  The guardian:

14(i)  is wasting or mismanaging the estate;

15(ii)  is or is likely to become insolvent;

16(iii)  has failed to perform any duty imposed by law;

17(iv)  has become incapacitated to discharge the
18duties as guardian because of sickness or physical or
19mental incapacity and the incapacity is likely to
20continue to the injury of the estate or the incapacitated
21person; or

22(v)  has removed from this Commonwealth or has ceased
23to have a known place of residence herein, without
24furnishing a security or additional security as the court
25directs.

26(2)  For any reason other than that set forth in
27paragraph (1), the interests of the estate or the
28incapacitated person are likely to be jeopardized by the
29guardian's continuance as guardian.

30(b)  Procedure.--

1(1)  On the court's own motion or on the petition of any
2party in interest alleging adequate grounds for removal of a
3guardian of the person or guardian of the estate, the court
4shall:

5(i)  order the guardian to appear and show cause why
6the guardian should not be removed; or

7(ii)  summarily remove the guardian when necessary to
8protect the rights of creditors or parties in interest.

9(2)  Upon removal of a guardian of the person or guardian
10of the estate, the court shall appoint a successor guardian
11and may appoint a co-guardian under section 5514 (relating to
12to fill vacancy; co-guardian) and, by summary attachment of
13the guardian or other appropriate orders, provide for the
14security and delivery of the assets of the estate, together
15with all books, accounts and papers relating thereto.

16(3)  Any guardian of the person or guardian of the estate
17summarily removed under this section may petition to have the
18decree of removal vacated and to be reinstated. If the court
19vacates the decree of removal and reinstates the guardian, it
20shall thereupon make any appropriate orders to accomplish the
21reinstatement.

22(c)  Discharge of guardian and surety.--After confirmation of
23the final account and distribution to the parties entitled, a
24guardian of the estate and the guardian's surety may be
25discharged by the court from future liability. The court may
26discharge only the surety from future liability, allowing the
27guardian to continue without surety, upon condition that no
28further assets shall come into the control of the guardian until
29the guardian files another bond with sufficient surety, if
30required.

1§ 5515.2.  Appointment of guardian in conveyance.

2A deed or instrument creating a gift or designating a
3beneficiary in a life insurance policy, annuity contract,
4retirement plan, including, but not limited to, any tax
5qualified or nonqualified pension, profit sharing, stock bonus,
6employee savings and retirement plan, deferred compensation plan
7or individual retirement account, or another plan or contractual
8arrangement providing for payments to the incapacitated person
9or to others after the incapacitated person's death, may contain
10an appointment of a guardian of the estate or interest of each
11named beneficiary who is incapacitated. Payment by an insurance
12or other financial services company to the beneficiary's
13guardian so appointed discharges the paying company to the same
14effect as payment to an otherwise duly appointed and qualified
15guardian.

16§ 5515.3.  Bond.

17(a)  General rule.--Except as provided in this section, every
18guardian of the estate shall execute and file a bond in the name
19of the Commonwealth, with sufficient surety, in an amount the
20court considers necessary, having regard to the value of the
21personal estate which will come into the control of the
22guardian, and conditioned in the following form:

23(1)  If the guardian administers the estate well and
24according to law, this obligation shall be void, but
25otherwise it remains in force.

26(2)  If a co-guardian administers the estate well and
27according to law, this obligation shall be void as to that
28co-guardian who so administers the estate, but otherwise it
29remains in force.

30(b)  Exceptions.--Unless deemed advisable by the court for

1cause shown, no bond is required of the following:

2(1)  A guardian appointed by or in accordance with the
3terms of a will, inter vivos instrument or insurance contract
4as to the property acquired under the authority of the
5appointment, unless it is required by the conveyance.

6(2)  A bank and trust company, a trust company
7incorporated in this Commonwealth or a national bank having
8its principal office in this Commonwealth.

9(c)  Court discretion.--The court has discretion to not
10require a bond:

11(1)  from a nonresident corporation or a national bank
12having its principal office outside this Commonwealth,
13otherwise qualified to act as guardian; and

14(2)  in all other cases when, for cause shown, it finds
15that no bond is necessary.

16(d)  Amount.--For cause shown and after such notice, if any,
17as it directs, the court may require a surety bond or increase
18or decrease the amount of an existing bond or require more or
19less security.

20Section 11.  Sections 5518 and 5518.1 of Title 20 are amended
21to read:

22§ 5518.  Evidence of incapacity.

23To establish incapacity in a proceeding in which the 
24incapacity of the alleged incapacitated person is contested, the
25petitioner must present testimony, in person or by
26teleconference, videoconference or deposition from individuals
27qualified by training and experience in evaluating individuals
28with incapacities of the type alleged by the petitioner, which
29establishes the nature and extent of the alleged incapacities
30and disabilities and the person's mental, emotional and physical

1condition, adaptive behavior and social skills. In a proceeding 
2in which the capacity of the alleged incapacitated person is not 
3contested and at which the person or the person's counsel is 
4present, the petitioner may establish incapacity by a sworn 
5statement from the qualified individuals. The [petition]
6petitioner must also present evidence regarding the services
7being utilized to meet essential requirements for the alleged
8incapacitated person's physical health and safety, to manage the
9person's financial resources or to develop or regain the
10person's abilities; evidence regarding the types of assistance
11required by the person and as to why no less restrictive
12alternatives would be appropriate; and evidence regarding the
13probability that the extent of the person's incapacities may
14significantly lessen or change.

15§ 5518.1.  Cross-examination of witnesses.

16[Testimony]  Except as provided for in section 5518 (relating 
17to evidence of incapacity), testimony as to the capacity of the
18alleged incapacitated person shall be subject to cross-
19examination [by counsel for the alleged incapacitated person].

20Section 12.  Section 5521(b), (c) and (g) of Title 20 are
21amended and the section is amended by adding subsections to
22read:

23§ 5521.  Provisions concerning powers, duties and liabilities.

24* * *

25(a.1)  Death or removal of guardian.--

26(1)  An action or proceeding in which a guardian of the
27person or guardian of the estate is a party is not abated by
28the death or resignation of the guardian or by the
29termination of the guardian's authority.

30(2)  The successor of the guardian may be substituted in

1the action or proceeding in the manner provided by law.

2[(b)  Duty of guardian of the estate.--The provisions
3concerning the powers, duties and liabilities of guardians of
4incapacitated persons' estates shall be the same as those set
5forth in the following provisions of this title relating to
6personal representatives of decedents' estates and guardians of
7minors' estates:

8Section 3313 (relating to liability insurance).

9Section 3314 (relating to continuation of business).

10Section 3315 (relating to incorporation of estate's
11business).

12Section 3317 (relating to claims against co-fiduciary).

13Section 3318 (relating to revival of judgments against
14personal representative).

15Section 3319 (relating to power of attorney; delegation
16of power over subscription rights and fractional shares;
17authorized delegations).

18Section 3320 (relating to voting stock by proxy).

19Section 3321 (relating to nominee registration; corporate
20fiduciary as agent; deposit of securities in a clearing
21corporation; book-entry securities).

22Section 3322 (relating to acceptance of deed in lieu of
23foreclosure).

24Section 3323 (relating to compromise of controversies).

25Section 3324 (relating to death or incapacity of
26fiduciary).

27Section 3327 (relating to surviving or remaining personal
28representatives).

29Section 3328 (relating to disagreement of personal
30representatives).

1Section 3331 (relating to liability of personal
2representative on contracts).

3Section 3332 (relating to inherent powers and duties).

4Section 3355 (relating to restraint of sale).

5Section 3356 (relating to purchase by personal
6representative).

7Section 3359 (relating to record of proceedings; county
8where real estate lies).

9Section 3360 (relating to contracts, inadequacy of
10consideration or better offer; brokers' commissions).

11Section 3372 (relating to substitution of personal
12representative in pending action or proceedings).

13Section 3374 (relating to death or removal of fiduciary).

14Section 3390 (relating to specific performance of
15contracts).

16Section 5141 (relating to possession of real and personal
17property).

18Section 5142 (relating to inventory).

19Section 5143 (relating to abandonment of property).

20Section 5145 (relating to investments).

21Section 5146 (relating to guardian named in conveyance).

22Section 5147 (relating to proceedings against guardian).

23Section 5151 (relating to power to sell personal
24property).

25Section 5154 (relating to title of purchaser).

26Section 5155 (relating to order of court).]

27(b.1)  Powers of guardian of the estate without further court
28approval.--Except as otherwise qualified, limited or directed by
29the court in its order of appointment, a guardian of the estate
30of an incapacitated person, without further court authorization

1or confirmation, shall have the following powers:

2(1)  Insure the assets of the estate against damage or
3loss and, at the expense of the estate, protect the
4incapacitated person, the guardian of the estate, the
5guardian of the person and any agent or employee of the
6guardian from liability to a third person that arises from
7the administration of the incapacitated person's estate. The
8power to purchase insurance at the expense of the estate does
9not include insurance to protect the guardian of the estate
10from any action ultimately found to be subject to surcharge.

11(2)  Take any legal action against a co-guardian of the
12estate to protect the estate of the incapacitated person, if
13one of two or more guardians of the estate is individually
14liable to the estate.

15(3)  Employ a custodian, hold property unregistered or in
16the name of a nominee, including the nominee of any
17institution employed as custodian, without disclosing the
18fiduciary relationship and without retaining possession and
19control of securities or other property so held or registered
20and pay reasonable compensation to the custodian.

21(4)  Take for the estate from the owner of property
22encumbered by a mortgage owned by the estate a deed in lieu
23of foreclosure, in which event the real estate shall be
24considered personalty to the same extent as though title were
25acquired by foreclosure at sheriff's sale. Any deed
26previously accepted is hereby valid in accordance with this
27paragraph.

28(5)  With respect to the tangible or intangible personal
29property of the estate and subject to section 5536 (relating
30to distributions of income and principal during incapacity):

1(i)  Acquire, take possession of or dispose of the
2personal property through the selling or exchanging of
3the personal property:

4(A)  For cash or on credit.

5(B)  At public or private sale.

6(C)  Without obligation to repudiate an otherwise
7binding agreement in favor of a better offer.

8(ii)  Wherever the personal property is located and
9until the personal property is distributed or sold:

10(A)  Maintain and administer the personal
11property.

12(B)  Make all reasonable expenditures necessary
13to preserve the personal property.

14(C)  Maintain any action with respect to the
15personal property.

16(6)  Accept, hold, invest in and retain investments as
17provided by Chapter 72 (relating to prudent investor rule).

18(7)  Advance money for the protection of the estate and
19for all expenses, losses and liability sustained in the
20administration of the estate or because of the holding or
21ownership of any estate asset. The guardian of the estate has
22a lien on the estate assets for an advance under this
23paragraph, including interest on the advance.

24(8)  With respect to an incapacitated person's service as
25fiduciary, which may include, without limitation, as an
26executor, administrator, trustee, guardian, agent or officer
27or director of a corporation:

28(i)  Renounce any fiduciary position to which the
29incapacitated person has been appointed.

30(ii)  Resign any fiduciary position in which the

1incapacitated person is then serving and:

2(A)  file an accounting with a court of competent
3jurisdiction; or

4(B)  settle on receipt and release or other
5informal method as the guardian of the estate deems
6advisable.

7(9)  Vote a security, in person or by general or limited
8proxy, with or without power of substitution.

9(10)  With respect to the real property of the estate:

10(i)  Manage, repair, improve, maintain, restore,
11alter, build, protect or insure.

12(ii)  Demolish structures.

13(iii)  Collect rent, earnings and other proceeds.

14(iv)  Pay, contest, protest and compromise taxes and
15assessments.

16(v)  Grant and obtain easements.

17(vi)  Develop, dedicate, partition or subdivide.

18(vii)  File plans, applications or other documents.

19(viii)  Release in whole or in part, assign the whole
20or a part of, satisfy in whole or in part and enforce any
21mortgage, encumbrance, lien or other claim to real
22property.

23(ix)  Subject to subsection (b.2)(3) and section
245536, generally exercise all powers that a person who is
25not incapacitated could exercise.

26(b.2)  Powers of guardian of the estate with further court
27approval.--A guardian of the estate of an incapacitated person
28may have the following powers only with further court
29authorization or confirmation:

30(1)  Continue any business in which the incapacitated

1person has an ownership interest, for the benefit of the
2incapacitated person's estate, after the court gives due
3regard to the order of appointment and any other factor
4deemed relevant, and aided by the report of a master if
5necessary. An order by the court under this paragraph may be
6with or without notice. If prior notice is not given to all
7parties in interest, it shall be given within five days after
8the order or within such extended time as the court, for
9cause shown, shall allow. Any party in interest may, at any
10time, petition the court to revoke or modify the order. The
11order may provide:

12(i)  for the conduct of business by the guardian of
13the estate alone or jointly with others, or as a
14corporation, partnership, limited liability company or
15other entity to be formed;

16(ii)  the extent of the liability of the estate or
17any part thereof, or of the guardian of the estate, for
18obligations incurred in the continuation of the business;

19(iii)  whether liabilities incurred in the conduct of
20the business are to be chargeable solely to the part of
21the estate set aside for use in the business or to the
22estate as a whole;

23(iv)  the period of time the business may be
24conducted;

25(v)  for the compensation of the guardian of the
26estate actively managing, supervising or engaging in the
27operation of an entity or business, from the estate's
28assets or from the entity or business, as appropriate,
29provided that the compensation is reasonably based upon
30the actual responsibilities assumed and performed; and

1(vi)  other regulations, including accountings, as
2the court shall deem advisable.

3(2)  After notice to all parties in interest and after
4the court gives due regard to the order of appointment and
5any other factor deemed relevant and aided by the report of a
6master if necessary:

7(i)  Organize a corporation or form a partnership,
8limited liability company or other entity to carry on the
9business of the incapacitated person, whether the
10business was owned solely or with others, with the
11guardian of the estate exercising this power alone or
12jointly with others.

13(ii)  Contribute for stock of the corporation, as
14capital, or for an interest in a partnership, limited
15liability company or other entity, all or part of the
16property of the incapacitated person that was invested in
17the business.

18(3)  With respect to the real property of the estate:

19(i)  Sell or buy any real property at public, private
20or judicial sale, exchange any real property or grant or
21obtain an option for the sale, purchase or exchange of
22any real property. The court may direct:

23(A)  The terms and security for any of these
24powers.

25(B)  The reasonable notice to the parties in
26interest, including heirs of the incapacitated
27person.

28(ii)  Join with the spouse of the incapacitated
29person in the performance of any of the acts under
30subparagraph (i) with respect to property held by the

1entireties.

2(iii)  Release the right of the incapacitated person
3in the real property of the person's spouse and join in
4the deed of the spouse on behalf of the incapacitated
5person.

6(iv)  Abandon any real property.

7(b.3)  Revival of judgment.--When the estate holds a judgment
8that is a lien on the real estate of the guardian, any person
9interested in the incapacitated person's estate may bring an
10appropriate action to revive it and to continue its lien.

11(b.4)  Death or incapacity of guardian of estate.--The
12personal representative of the estate of a deceased guardian of
13the estate or the guardian of an incapacitated guardian of the
14estate by reason of the position so held shall not succeed to
15the administration of, or have the right to possess, any asset
16of the estate that was being administered by the deceased or
17incapacitated guardian of the estate, except to protect it
18pending its delivery to the person entitled to it. The account
19of the deceased or incapacitated guardian of the estate may be
20filed by the fiduciary of the guardian's estate and shall be
21filed if the court shall so direct. The court may direct the
22fiduciary of a deceased or incapacitated guardian of the estate
23to make the distribution and to make the transfers and
24assignments necessary to carry into effect a decree of
25distribution.

26(b.5)  Surviving or remaining guardians.--Unless the order of
27appointment specifies otherwise, surviving or remaining
28guardians of the estate shall have all the powers of the
29original guardians of the estate.

30(b.6)  Disagreement of guardians of the estate.--If a dispute

1arises among guardians of the estate, the decision of the
2majority shall control unless otherwise provided by the court. A
3dissenting guardian of the estate shall join with the majority
4to carry out a majority decision requiring affirmative action
5and may be ordered to do so by the court. A dissenting guardian
6of the estate shall not be liable for the consequences of any
7majority decision even though the guardian joins in carrying it
8out, if the dissent is expressed promptly in writing to all the
9other guardians of the estate, but liability for failure to join
10in the further administration of the estate or to prevent a
11breach of fiduciary duty may not be thus avoided. If a dispute
12arises among guardians of the estate as to the exercise or
13nonexercise of any of their powers and there is no agreement of
14a majority of them, unless otherwise provided by the court, the
15court, upon petition filed by any of the guardians of the estate
16or by any party in interest, aided if necessary by the report of
17a master, in its discretion, may direct the exercise or
18nonexercise of the power as the court shall deem for the best
19interest of the estate.

20(b.7)  Filing of decree.--If a guardian of the estate has the
21power to engage in a transaction involving the real estate of an
22incapacitated person, a certified copy of the decree appointing
23the guardian of the estate may be recorded in the office for the
24recording of deeds in any county where the real estate, which is
25subject to that power, is located.

26(b.8)  Inadequacy of consideration.--

27(1)  Except as provided in paragraphs (2) and (3), when a
28guardian of the estate makes a contract, the inadequacy of
29consideration or the receipt of an offer to deal on other
30terms does not:

1(i)  relieve the guardian of the estate of the
2obligation to perform the contract, except as otherwise
3agreed by the parties; or

4(ii)  constitute a basis for any court to set aside
5the contract or refuse to enforce it by specific
6performance or otherwise.

7(2)  This subsection does not affect or change the
8inherent right of the court to set aside a contract for
9fraud, accident or mistake.

10(3)  Nothing in this subsection shall affect the
11liability of a guardian of the estate for surcharge on the
12ground of negligence or bad faith in making a contract.

13(b.9)  Substitution of party.--If a party to a pending action
14or proceeding has a guardian of the estate appointed, the
15guardian of the estate of the incapacitated person may be
16substituted as a party as provided by law.

17(b.10)  Specific performance of contracts.--

18(1)  If a person enters into an agreement to purchase or 
19sell real or personal estate and a guardian of the estate is 
20appointed for the person before the consummation of the 
21agreement, the guardian of the estate may consummate the 
22agreement. If the guardian of the estate does not consummate 
23the agreement, the court may order specific performance of 
24the agreement:

25(i)  on the application of any party in interest;

26(ii)  after such notice and with such security, if
27any, as the court may direct; and

28(iii)  if the agreement would have been enforced
29specifically had the guardian of the estate not been
30appointed.

1(2)  The guardian of the estate or other person as the
2court directs shall execute any necessary deed or transfer
3regarding the agreement under this subsection. The title of
4any purchaser under an agreement in which the incapacitated
5person was the vendor shall be the same as though the
6incapacitated person had conveyed or transferred the property
7prior to the appointment of the guardian of the estate.

8(3)  When any petition for specific performance of an
9agreement to purchase or sell real estate is filed, the
10prothonotary of the court of common pleas where the real
11estate or any part of it lies, upon the receipt of a
12certificate of such fact by the clerk of the court where the
13petition was filed, shall enter the petition upon either the
14judgment or ejectment and miscellaneous indexes against the
15defendants as directed by local rules of court and shall
16certify it as lis pendens in any certificate of search that
17the prothonotary is required to make.

18(b.11)  Abandonment of property.--Subject to subsection (b.2)
19(3):

20(1)  A guardian of the estate may abandon property of the
21incapacitated person if the property is so burdensome or
22encumbered or in such condition that it is of no value to the
23estate.

24(2)  The court may authorize the guardian of the estate
25to transfer, renounce or release property of the
26incapacitated person without consideration if:

27(i)  the property cannot be abandoned without
28transfer of title to another or without a formal
29renunciation or release; and

30(ii)  the court finds that the transfer, renunciation

1or release will be for the best interests of the estate.

2(b.12)  Title of purchaser.--If the guardian of the estate of
3an incapacitated person has given a bond as required in
4accordance with this title, any sale, pledge, mortgage or
5exchange by the guardian of the estate, whether pursuant to a
6decree or to the exercise of a power under this title, shall
7pass the full title of the incapacitated person, free of any
8right of the incapacitated person's spouse, unless otherwise
9specified. Persons dealing with the guardian of the estate shall
10have no obligation to see to the proper application of the cash
11or other assets given in exchange for the property of the
12incapacitated person. A sale or exchange by a guardian of the
13estate pursuant to a decree under subsection (b.2)(3) shall have
14the effect of a judicial sale as to the discharge of liens, but
15the court may decree a sale or exchange freed and discharged
16from the lien of any mortgage otherwise preserved from discharge
17by existing law if the holder of the mortgage consents by
18writing filed in the proceeding. No sale, mortgage, exchange or
19conveyance shall be prejudiced by the subsequent dismissal of
20the guardian of the estate if the person dealing with the
21guardian did so in good faith.

22(b.13)  Compromise or settlement.--A guardian of the estate
23may compromise or settle any claim by or against the estate,
24through litigation or otherwise, without court approval. The
25guardian may seek court approval of any such compromise or
26settlement, subject to the following:

27(1)  The court may enter a decree authorizing the
28compromise or settlement to be made:

29(i)  On petition by the guardian of the estate or any
30party in interest setting forth all the facts and

1circumstances.

2(ii)  After notice as the court directs.

3(iii)  Aided if necessary by the report of a master.

4(2)  For a compromise or settlement of an action in which
5damages are sought on behalf of the estate, the court that
6has jurisdiction and in which the action is pending may
7approve the compromise or settlement, including an agreement
8for the payment of counsel fees and other proper expenses
9incident to the action, upon:

10(i)  oral motion by plaintiff's counsel of record in
11the action; or

12(ii)  petition by the guardian of the estate.

13(3)  The order of the court approving the compromise or
14settlement or the agreement for the payment of counsel fees
15and other expenses shall not be subject to collateral attack
16in the orphans' court division.

17(4)  The guardian of the estate shall file a copy of the
18order of the court approving the compromise or settlement
19with the clerk of the court having jurisdiction of the
20estate. When the guardian of the estate has been required to
21give bond, the guardian may not receive the proceeds of the
22compromise or settlement until:

23(i)  the court of the county having jurisdiction of
24the estate has made an order excusing the guardian from
25entering additional security; or

26(ii)  the guardian has entered the additional
27security that is required by the court of the county
28having jurisdiction of the estate.

29(c)  Reports.--

30(1)  Each guardian of an incapacitated person shall file

1with the court appointing [him] the guardian a report, [at
2least once] within the first 12 months of [his] the
3appointment and [at least] annually thereafter, attesting to
4the following:

5(i)  Guardian of the estate:

6(A)  current principal and how it is invested;

7(B)  current income;

8(C)  expenditures of principal and income since
9the last report; and

10(D)  needs of the incapacitated person for which
11the guardian has provided since the last report.

12(ii)  Guardian of the person:

13(A)  current address and type of placement of the
14incapacitated person;

15(B)  major medical or mental problems of the
16incapacitated person;

17(C)  a brief description of the incapacitated
18person's living arrangements and the social, medical,
19psychological and other support services he is
20receiving;

21(D)  the opinion of the guardian as to whether
22the guardianship should continue or be terminated or
23modified and the reasons therefor; [and]

24(E)  number and length of times the guardian or 
25the guardian's representative personally visited the
26incapacitated person in the past year; and

27(F)  plans for future care, where appropriate.

28(2)  Within 60 days of the death of the incapacitated
29person or an adjudication of capacity and modification of
30existing orders, the guardian shall file a final report with

1the court.

2(3)  Failure of a guardian to file a timely report under
3this subsection shall subject the guardian to appropriate
4sanctions.

5(c.1)  Records of guardian.--Each guardian of an
6incapacitated person shall keep records regarding the
7guardianship and the incapacitated person. Failure of a guardian
8to keep records under this subsection shall subject the guardian
9to appropriate sanctions.

10* * *

11(d.1)  Health care decisions.--

12(1)  Subject to the following, a guardian of the person
13shall have the same authority to make health care decisions
14on behalf of the incapacitated person as a health care
15representative under section 5461(c) (relating to decisions
16by health care representative), and a health care decision by
17the guardian of the person shall be effective without court
18approval as with a health care representative under section
195461(j):

20(i)  Any limitations and conditions set forth in the
21order of appointment.

22(ii)  The same health care decision-making process as
23prescribed in section 5456(c) (relating to authority of
24health care agent).

25(iii)  The same limitations under sections 5429
26(relating to pregnancy) and 5462(c) (relating to duties
27of attending physician and health care provider),
28including the requirement that health care necessary to
29preserve life be given to an individual who has neither
30an end-stage medical condition nor is permanently

1unconscious.

2(iv)  Subsection (d).

3(v)  Subsection (f).

4(vi)  Any other provision regarding health care
5representatives as set forth in Chapter 54 (relating to
6health care), except section 5461(d) regarding who may
7act as health care representative.

8(2)  To the extent practicable, a guardian of the person
9shall consult with close family members of the incapacitated
10person in making a health care decision, particularly one
11involving end-of-life decision making.

12(3)  A petition that is filed for the appointment of a
13guardian of the person under section 5511 (relating to
14petition and hearing; independent evaluation) on or after (in
15preparing this act for printing in the Laws of Pennsylvania
16and the Pennsylvania Consolidated Statutes, the Legislative
17Reference Bureau shall insert here, in lieu of this
18statement, the effective date of this subsection) shall state
19whether it is proposed that the guardian of the person shall
20have the power to make health care decisions and, if so,
21whether the guardian shall have all the powers of a health
22care representative to make health care decisions as defined
23in section 5422 (relating to definitions), including
24decisions involving health care necessary to preserve life if
25the incapacitated person were to be in an end-stage medical
26condition or be permanently unconscious, and any limitation
27of those powers.

28(4)  Notice of a petition or hearing under section 5511
29shall contain the information under paragraph (3).

30(5)  An order of appointment of a guardian of the person

1that is issued on or after (in preparing this act for
2printing in the Laws of Pennsylvania and the Pennsylvania
3Consolidated Statutes, the Legislative Reference Bureau shall
4insert here, in lieu of this statement, the effective date of
5this subsection) shall specify whether the guardian of the
6person shall have the power to make health care decisions
7and, if so, whether the guardian shall have all the powers of
8a health care representative to make health care decisions as
9defined in section 5422, including decisions involving health
10care necessary to preserve life if the incapacitated person
11were to be in an end-stage medical condition or be
12permanently unconscious, and any limitation of those powers.

13(6)  A guardian of the person appointed before (in
14preparing this act for printing in the Laws of Pennsylvania
15and the Pennsylvania Consolidated Statutes, the Legislative
16Reference Bureau shall insert here, in lieu of this
17statement, the effective date of this subsection) shall have
18the same powers as a health care representative unless:

19(i)  a prior court order has limited the power of the
20guardian of the person to make health care decisions; or

21(ii)  a health care representative is available and
22assumes authority to act by agreement between the health
23care representative and the guardian of the person, in
24which case, the guardian of the person shall thereafter
25have no health care decision-making powers.

26* * *

27(g)  [Criminal and civil immunity] Liability of guardian of 
28person.--

29(1)  In the absence of gross negligence, recklessness or
30intentional misconduct, a [unit of local government,

1nonprofit corporation or guardianship support agency under
2Subchapter F (relating to guardianship support) appointed as
3a] guardian of the person shall not be criminally liable or
4civilly liable for damages for performing duties as a
5guardian of the person, as authorized under this chapter.

6(2)  Except as otherwise agreed, a guardian of the person
7is not personally liable on a contract properly entered into
8by the guardian of the person in a fiduciary capacity.

9(h)  Liability of guardian of estate.--

10(1)  Except as otherwise agreed, a guardian of the estate
11is not personally liable on a contract properly entered into
12in a fiduciary capacity in the course of administration of
13the estate unless the guardian fails to reveal in the
14contract the representative capacity and identify the estate.

15(2)  If a guardian of the estate fails to exercise
16reasonable care, skill and caution for obligations arising
17from ownership or control of property of the estate or for
18other acts or omissions occurring in the course of
19administration of the estate, the guardian of the estate may
20be personally liable to the estate. The court shall evaluate
21the application of reasonable care, skill and caution in the
22context of the identity, background and experience of the
23guardian of the estate.

24(3)  A question of liability between the estate and the
25guardian personally may be determined in a proceeding for
26accounting, surcharge or indemnification or in another
27appropriate proceeding.

28(i)  Delegation by guardian of estate.--A guardian of the
29estate may delegate powers and duties, including discretionary
30powers and duties, and an agent may accept the delegation of

1powers and duties, subject to the following:

2(1)  A guardian of the estate shall exercise reasonable
3care, skill and caution in:

4(i)  Selecting an agent.

5(ii)  Establishing the scope and specific terms of
6the delegation, consistent with the purposes and terms of
7the guardianship.

8(iii)  Reviewing periodically the agent's actions in
9order to monitor the agent's performance and compliance
10with the scope and specific terms of the delegation.

11(2)  The agent shall comply with the scope and terms of
12the delegation, exercise the delegated duties and powers with
13reasonable care, skill and caution and be liable to the
14incapacitated person's estate for failure to do so. An agent
15who represents having special skills or expertise shall use
16those special skills or that expertise.

17(3)  A guardian of the estate who complies with paragraph
18(1) is not liable to the incapacitated person or to the
19incapacitated person's estate for an action of the agent to
20whom the function was delegated.

21(4)  An agent who accepts the delegation of duties or
22powers from a guardian of the estate who is subject to the
23jurisdiction of a court of this Commonwealth shall be deemed
24to have submitted to the jurisdiction of that court even if
25the terms of the delegation provide for a different
26jurisdiction or venue.

27(5)  A co-guardian of the estate may delegate duties and
28powers to another co-guardian of the estate if the delegating
29co-guardian reasonably believes that the other co-guardian
30has greater skills than the delegating co-guardian with

1respect to those duties and powers and the other co-guardian
2accepts the delegation. The delegating co-guardian shall not
3be responsible for the decisions, actions or inactions of the
4co-guardian to whom those duties and powers have been
5delegated if the delegating co-guardian has exercised
6reasonable care, skill and caution in establishing the scope
7and specific terms of the delegation and in reviewing
8periodically the performance of the co-guardian to whom the
9duties and powers have been delegated and that co-guardian's
10compliance with the scope and specific terms of the
11delegation.

12(j)  Inventory.--

13(1)  Within 90 days after the order of appointment of an
14incapacitated person's guardian of the estate, the guardian
15shall prepare and file with the appointing court a detailed
16inventory of:

17(i)  The real and personal property of the estate.

18(ii)  Other assets in which the incapacitated person
19has an interest, including, but not limited to,
20information regarding life insurance, annuities and
21retirement plans.

22(iii)  All income received by the guardian on behalf
23of the incapacitated person and all funds received from
24the United States Department of Veterans Affairs, Social
25Security Administration, and other periodic retirement or
26disability payments under private or governmental plans
27and other periodic payments payable for the life or life
28expectancy of the incapacitated person.

29(2)  The inventory under paragraph (1) shall be filed
30with an oath or affirmation that the inventory is believed to

1be complete and accurate as far as information permits.

2Section 13.  Title 20 is amended by adding a section to read:

3§ 5526.  Protection of person dealing with guardian.

4(a)  Third-party liability.--Any person who is given
5instructions by a guardian in accordance with the terms of a
6guardianship order shall comply with the instructions. Any
7person who without reasonable cause fails to comply with those
8instructions shall be subject to civil liability for any damages
9resulting from noncompliance. Reasonable cause under this
10subsection includes, but is not limited to, a good faith report
11having been made by the third party to the local protective
12services agency regarding abuse, neglect, exploitation or
13abandonment under section 302 of the act of November 6, 1987
14(P.L.381, No.79), known as the Older Adults Protective Services
15Act, or section 302 of the act of October 7, 2010 (P.L.484,
16No.70), known as the Adult Protective Services Act.

17(b)  Third-party immunity.--Any person who acts in good faith
18reliance on a guardianship order shall incur no liability as a
19result of acting in accordance with the instructions of the
20guardian.

21(c)  Information regarding guardianship.--Upon request, a
22guardian shall:

23(1)  Give a copy of the guardianship order to the person
24to whom the guardian gives instructions, along with an
25affidavit of the guardian certifying that the guardianship
26order remains effective as written.

27(2)  Inform the person of any restrictions or limitations
28on the guardian's authority.

29Section 14.  Sections 5531, 5536 and 5553(a) of Title 20 are
30amended to read:

1§ 5531.  When [accounting] account filed.

2A guardian shall file an account of his administration
3whenever directed to do so by the court [or] and may file an
4account [at the termination of the guardianship, or] at any
5other time [or times authorized by the court].

6§ 5536.  Distributions of income and principal during
7incapacity.

8(a)  In general.--[All income received by a guardian of the
9estate of an incapacitated person, including (subject to the
10requirements of Federal law relating thereto) all funds received
11from the Veterans' Administration, Social Security
12Administration and other periodic retirement or disability
13payments under private or governmental plans, in the exercise of
14a reasonable discretion, may be expended in the care and
15maintenance of the incapacitated person, without the necessity
16of court approval.]

17(1)  In reasonably exercising discretion, a guardian of
18the estate of an incapacitated person may expend without
19court approval for the care and maintenance of the
20incapacitated person all funds received from the United
21States Department of Veterans Affairs, Social Security
22Administration, other periodic retirement or disability
23payments under private or governmental plans, and other
24periodic payments payable for the life or life expectancy of
25the incapacitated person. The court may limit discretionary
26expenditures of income where the financial circumstances and
27needs of the incapacitated person so require.

28(2)  The court, for cause shown and with only such notice
29as it considers appropriate in the circumstances, may
30authorize or direct the payment or application of any or all

1of the income or principal of the estate of an incapacitated
2person for the care, maintenance or education of the
3incapacitated person, his spouse, children or those for whom
4he was making such provision before his incapacity, or for
5the reasonable funeral expenses of the incapacitated person's
6spouse, child or indigent parent.

7(3)  In proper cases, the court may order payment of
8amounts directly to the incapacitated person for his
9maintenance or for incidental expenses and may ratify
10payments made for these purposes.

11(4)  For purposes of this subsection, the term "income"
12means income as determined in accordance with the rules set
13forth in Chapter 81 (relating to principal and income),
14[other than] but the power to adjust and the power to convert
15to a unitrust shall not apply, and periodic payments that are 
16not payable for the life or life expectancy of the 
17incapacitated person are considered to be principal under 
18this subsection.

19(5)  Fees for an incapacitated person's guardian of the
20person or guardian of the estate may not be paid from the
21income or principal of the incapacitated person's estate
22without court approval. However, the court may prospectively
23authorize a guardian's fees and retain the right to adjust
24and approve those fees upon review.

25(b)  Estate plan.--[The court, upon petition and with notice
26to all parties in interest and for good cause shown,] Subject to 
27subsection (c), for good cause shown, the court shall have the
28power to substitute its judgment for that of the incapacitated
29person with respect to the estate and affairs of the
30incapacitated person for the benefit of the incapacitated

1person, his family, members of his household, his friends and
2charities in which he was interested. This power shall include,
3but is not limited to, the power to:

4(1)  Make gifts, outright or in trust.

5(2)  Convey, release or disclaim his contingent and
6expectant interests in property, including marital property
7rights and any right of survivorship incident to joint
8tenancy or tenancy by the entirety.

9(3)  Release or disclaim his powers as trustee, personal
10representative, custodian for minors, or guardian.

11(4)  Exercise, release or disclaim his powers as donee of
12a power of appointment.

13(5)  Enter into contracts.

14(6)  Create for the benefit of the incapacitated person
15or others, revocable or irrevocable trusts of his property
16which may extend beyond his disability or life.

17(7)  Exercise options of the incapacitated person to
18purchase or exchange securities or other property.

19(8)  Exercise all rights and privileges, including the 
20designation of a beneficiary, under life insurance policies,
21annuity contracts, retirement plans, including, but not 
22limited to, any tax qualified or nonqualified pension, profit 
23sharing, stock bonus, employee savings and retirement plan, 
24deferred compensation plan or individual retirement account 
25or other plans or contractual arrangements providing for
26payments to the incapacitated person or to others after his
27death.

28(9)  Exercise his right to claim or disclaim an elective
29share in the estate of his deceased spouse and renounce any
30interest by testate or intestate succession or by inter vivos

1transfer.

2(10)  Change the incapacitated person's residence or
3domicile.

4(11)  Modify by means of codicil or trust amendment, as
5the case may be, the terms of the incapacitated person's will
6or of any revocable trust created by the incapacitated
7person, as the court may deem advisable in light of changes
8in applicable tax laws.

9In the exercise of its judgment for that of the incapacitated
10person, the court, first being satisfied that assets exist which
11are not required for the maintenance, support and well-being of
12the incapacitated person, may adopt a plan of gifts [which
13results in minimizing] or authorize any other action, including, 
14but not limited to, an action set forth in this subsection that 
15minimizes current or prospective taxes, [or which] carries out a
16lifetime giving pattern or creates or preserves the 
17incapacitated person's eligibility for a benefit, a program or 
18assistance under a statute or regulation. The court in
19exercising its judgment shall consider the testamentary and
20inter vivos intentions of the incapacitated person insofar as
21they can be ascertained.

22(c)  Petition and notice.--The court may exercise its power
23under subsection (b) upon petition and with notice to:

24(1)  All persons who are sui juris and would be entitled
25to share in the incapacitated person's estate if the
26incapacitated person died intestate at that time.

27(2)  Any person known to the guardian who would be
28prejudiced by the proposed action.

29(3)  Other parties as the court may direct.

30§ 5553.  Guardianship services.

1(a)  In general.--The guardianship support agency shall be
2available to serve as guardian of the estate or of the person,
3or both, of an incapacitated person when no less restrictive
4alternative will meet the needs of the individual and when no
5other person is willing and qualified to become guardian. The
6agency itself may be appointed guardian and no individual need
7be specified by the court. If appointed, the guardianship
8support agency shall have all of the powers and duties of a
9corporate fiduciary and [shall not] may be required to post bond
10as the court directs.

11* * *

12Section 15.  This act shall apply to all guardianship
13petition petitions that are filed, proceedings that occur and
14orders that are made on or after the effective date of this
15section.

16Section 16.  This act shall take effect in 60 days.