A Simplified Power of Attorney: Maintain the “Brief” Power of Attorney in Your Title – New York Property Planning Lawyer Weblog – Might 28, 2021

The crisis caused by COVID has served as a stress test for many laws and regulations that affect our nation’s seniors. The power of attorney, a document that gives one person, the proxy, the legal authority to act on behalf of another person, the client, fulfills the urgent need to have control over their health and resources in the event of incapacity for work, especially at times when to put the crisis in trustworthy hands. For example, patients in nursing homes need quick and permanent answers to the crisis. And guarantees that the courts and third parties such as banks respect their decisions.

In 1948, the POA “Short Form” was created to simplify the process for New York citizens. Since then it has been anything but. A new law corrected this.

The new power of attorney will come into force on June 13, 2021

After years of pressure from attorneys and consumers, Governor Cuomo signed a new Power of Attorney Act on December 15, 2020 that will come into force on June 13, 2021.

The changes protect the elders, make it easier and safer to create a power of attorney, and help keep it in place after a POA is signed. The bill also increases the dollar amount of gifts to loved ones that an agent can make in the event of your incapacity.

Less hassle and delay for POAs

One of the most important features of the new law provides for penalties, legal fees and damages if a recipient neither accepts nor rejects in writing for articulated reasons within 10 days. In other words, there is a legal presumption that the document is valid. This reduces the likelihood that banks will make it difficult for you to solve technical problems, for example.

Better yet, you are protected from being mistaken about the language you use in your agreement. As long as you essentially stick to the required wording, your document is valid. There are no exact wording requirements. In addition, the client can carry out a POA without personally signing the document. However, all new POAs require two witnesses, one of whom can be the notary.

Third parties will also have less incentive to give clients and agents a hard time. The new bill protects you from liability in the event of future misconduct by the agent.

Process of power of attorney for gifts simplified and expanded

According to the New York Short-Form POA, if you, as a principal, want to give your agent the opportunity to give gifts to loved ones in the event of your inability to do so, you must attach a “driver” which, despite its simple name, is a completely different law document. This is no longer the case with the new bill. The agent is allowed to give gifts to parties that you usually gave gifts to.

The amount of dollars the agent can spend on a party each year has also increased. From $ 500 to $ 5,000.

A win for New Yorkers

In times of crisis and quieter times, the power of attorney is one of the most adaptable and important estate documents you have at your disposal. The new changes, which go into effect June 13, 2021, provide New York citizens with more options and more protection for their long-term and short-term estate planning goals.