THE NEW POWER OF ATTORNEY RULES

On September 1, 2009, a new statutory Power of Attorney will be in effect. NY G.O.L. 51501, Chap. 644 of Laws of 2008. This new statutory form changes the manner of execution and the content of the previous statutory form. It continues the dual use of a Power of Attorney: financial access to a principal’s accounts while he or she has capacity as well as an effective tool for future planning if the principal becomes incapacitated. By setting forth the fiduciary duty of the agent to the principal, the new statutory form is intended to eliminate abuses committed by agents under the previous statutory Powers of Attorney and includes provisions intended to safeguard individuals from those who overreach via Power of Attorney. Even if the extensive provisions in the form do not stop the unauthorized use of funds, the statute is clear that agents must keep records and document their transactions. This requirement may prove a deterrent to those who wish to serve only for their own self interest. I just attended a seminar on this and will discuss more - and realize that Power of Attorneys executed prior to September 1 will still be effective but the fiduciary duties will now apply to them as well as the special proceeding that may be initiated to clarify the validity of the document executed prior to September 1, 2009