New law went into effect on June 13, 2021, making changes to New York's power of attorney ("POA") form. You don't have to panic, older POA's that were validly executed, remain effective. Nevertheless, it might be wise to update your POA. Here is some information about some of the major changes.
In the past, it seemed like many businesses went out of their way to nitpick POAs presented by customers or clients. Anything they could allege was wrong with it, often incredibly minor things, were cause for rejection. One of the most important changes to the law is that sanctions for unreasonable rejection of a POA by, for example a bank, now subject the bank to a special proceeding brought by the aggrieved, which now includes damages, costs, and reasonable attorneys' fees. This should start to clear the way for easier transactions.
The new POA's no long have to follow the exact wording of the statute. Under the amended law, substantial conformity is required. While most POA's will follow the exact wording, this puts to bed any arguments over the placement of a comma, or the bolding of certain text, and the like.
There are many other changes. The new POA must be witnessed by two individuals and they must also be notarized. However, the notary can be one of the witnesses. Agents must keep a record of all transaction or keep all receipts. And there were major changes to gift transactions, including the elimination of the gift rider.
Call us for assistance with a new POA and for all of your estate planning needs. We are happy to help.
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