Prime 10 Issues to Know About Modifications to Power of Attorney in New York Rivkin Radler LLP
On December 15, 2020, Governor Andrew Cuomo signed long-awaited amendments to the New York State Authority Act. The changes are intended to simplify the use of the power of attorney, provide a framework for the acceptance or rejection of the power of attorney, and clarify the power of attorney and the duties of a proxy.
- Your existing powers of attorney remain in effect.
- The changes will take effect on June 13, 2021.
- The new law provides a clear procedure for instructing someone to sign the power of attorney on their behalf.
- Potential recipients of gifts made through a power of attorney are not entitled to act as witnesses for the enforcement of the power of attorney.
- The refusal to comply with a power of attorney must be made in writing to the client and the representative within 10 working days of submission. The document must contain specific reasons for the rejection.
- If proceedings are initiated to force the acceptance of a legal power of attorney, the court can award damages including reasonable legal fees.
- The total legal base amount for gifts will increase from $ 500 per year to $ 5,000 per year.
- The record-keeping requirement for agents has been clarified. An agent must log all transactions carried out for the client or keep all payments and transactions made for the client.
- The separate statutory gift driver is not required for new powers of attorney.
- The agent is considered a personal representative for health care financial affairs. Health care providers and health plans must provide the agent with the information necessary to determine the legality and accuracy of charges for health-related expenses and services.