New Power of Attorney Form Required in New York Effective June 13, 2021
On December 15, 2020, Governor Cuomo signed into law changes to the New York Power of Attorney (“POA”) law, which will took effect on June 13, 2021. A new POA form must be used as of that date. However, POA’s that were executed prior to June 13, 2021 in accordance with the then applicable law, will not be impacted and the agency granted may continued to be relied upon. All POA’s drafted or executed after June 13, must “substantially conform” to the new POA law.
The major changes to the POA law are: (1) the new POA does not have to follow the exact format proposed by the new statute, rather a “substantial” conformity suffices; (2) there is no longer a requirement to have a separate Statutory Gifts Rider (“SGR”) signed contemporaneously with the POA in order for the Agent to be permitted to make gifts; (gift giving capability is usually the most significant aspect of the POA as it permits the Agent to plan for tax savings as well as Medicaid eligibility); (3) penalties for the unreasonable denial of institutions or individuals to accept the POA (finally!); and (4) and safe harbors for third parties acting in good faith. The changes to the POA law also greatly expand an Agent’s authority regarding health care and health care finances. The POA law is Section 5-1513 of the General Obligations Law and can be located at: https://www.nysenate.gov/legislation/laws/GOB/5-1513
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