New York State’s New Power of Attorney law becomes effective on June 13, 2021. The changes are intended to make the Power of Attorney easier to use and clarify the power and obligations of an Agent.
- Existing Powers of Attorney documents remain effective.
- The changes will take effect on June 13, 2021. Documents executed by the Principal on June 13, 2021 or after must follow the new statutory form. A Power of Attorney document that was executed by the Principal prior to June 12, 2021 (even though signed by the Agent after that date) will be valid.
- Potential recipients of gifts made through a Power of Attorney are not eligible to serve as witnesses to the execution of the Power of Attorney document.
- A refusal to honor a power of attorney must be made, in writing, to the Principal and the Agent within 10 business days of presentation. The document must provide specific reasons for the refusal.
- If a proceeding is brought to compel the acceptance of a statutory short-form power of attorney, the court can award damages including reasonable attorney’s fees.
- The total basic statutory gifting amount is increased from $500 per year to $5,000 per year.
- The separate statutory gift rider will not be required for new Power of Attorney documents.
- The record-keeping requirement for Agents has been clarified. An Agent must keep a record (e. ledger) of all transactions conducted for the Principal or keep all receipts of payments and transactions conducted for the Principal.
- The Agent will be considered a personal representative for the purpose of health care financial matters. Health care providers and health plans must provide the Agent with information needed to determine the legitimacy and accuracy of charges for health-related expenses and benefits.
If you have any questions about the above material, or wish to speak to an attorney, please contact Pfalzgraf Beinhauer Grear Harris Schuller LLP at (716) 204-1055.
Pfalzgraf Beinhauer Grear Harris Schuller LLP is located at 455 Cayuga Road, Suite 600, Buffalo, New York 14225.