How long must an attorney-in-fact keep records?

Question

An attorney-in-fact (via power-of-attorney) is a fiduciary, and is required to keep detailed and accurate records of all relevant transactions entered into on behalf of the principal. Is there a requirement as to how long an AIF must keep these records? I'm guessing that there must be some rule or code that addresses this matter, but I've been unable to locate it. So, if you have a link, please share! Thank you.

It was a bit late when I posted, but I should probably add that this is in CA. The principal for which the AIF served passed away in Jul 06, and since that time, the AIF has served as the trustee over the estate. There have been reasons to expect self-serving back to when the principal was hospitalized about 4 years ago. A full accounting has been requested, for which the beneficiaries are entitled. The trustee / former AIF is saying he doesn't have such records that far back anymore, thus my question as to the requirement - in CA. Thanks so much!

Answer 1

Records should have been provided on a yearly basis.

California Code outlining the Duties of a Trustee:
http://caselaw.lp.findlaw.com/cacodes/prob/16000-16015.html

16062. (a) Except as otherwise provided in this section and in Section 16064, the trustee shall account at least annually, at the termination of the trust, and upon a change of trustee, to each beneficiary to whom income or principal is required or authorized in the trustee's discretion to be currently distributed.

16063. (6) A statement that claims against the trustee for breach of trust may not be made after the expiration of three years from the date the beneficiary receives an account or report disclosing facts giving rise to the claim.
http://caselaw.lp.findlaw.com/cacodes/prob/16060-16064.html

Have the beneficiaries requested any such records on an ongoing basis? Do they receive yearly account records?

Have him/her go directly to the financial institutions for detailed records and accountings of any account records not maintained. (Perhaps for a small fee) They will be more than happy to provide him/her with detailed historical account data. There are surely tax records as well, and the IRS is another place that keeps records (far longer than most of us would like!). Have him/her request records. Every trust files a tax return.

Answer 2

If I were an agent under a power of attorney, I would keep records until three years after the death of the principal. Under Pennsylvania law, there is no general requirement. I suppose the concept of "laches" or an equitable statute of limitations applies.

I have been involved in a number of instances where an agent (attorney-in-fact) was required to file an accounting. These generally arose in conjunction with the administration of a decedent's estate. All were actions brought by disgruntled family members who had accused the agent (attorney-in-fact) of either self-dealing or manipulation of the principal . In a lot of the cases, the attorney-in-fact had made gifts to herself on behalf of the principal in a manner that seriously depleted the principal's assets.

The Pennsylvania statute dealing with accountings is as follows:
§ 5610. Account.

An agent shall file an account of his administration whenever directed to do so by the court and may file an account at any other time. All accounts shall be filed in the office of the clerk in the county where the principal resides.

Answer 3

The records must be kept as long as the attorney-in-fact lives in favor of the principal.