New York City Office
Westchester Office
Dutchess OfficeNew Power of Attorney Law Attempts
to Curb Abuse
A new law, effective September 1, 2009, makes significant changes to New York State’s power of attorney process. In recent years, there have been widely publicized instances of fraud relating to power of attorney, and the new law seeks to ensure that all parties understand the implications of taking this legal step. It is important to note that powers of attorney executed prior to September 1 continue to be valid, provided they were executed in accordance with then-current law. Still, this is a good time to review your personal situation to ensure that your documents continue to meet your needs.
A power of attorney appoints an “agent” with the authority to act on behalf of the “principal” in legal and financial matters. Failing to confer power of attorney upon a trusted individual can have serious consequences. In the event that a person can no longer make certain decisions, the family may need to establish guardianship, a costly court procedure.
One of the new law’s key provisions is clarification of the serious nature of the power of attorney agreement, requiring both principal and agent(s) to sign the document. The principal is explicitly informed of the implications of this decision, while the agent is informed of his responsibility to act in accordance with the principal’s welfare—bills must be paid, records kept, and separation maintained between the various parties’ property. The new documentation is HIPAA-compliant, giving agents access to health care billing and payment records in order to determine their authenticity but not to make health care decisions. Financial institutions are required to accept validly executed powers of attorney forms in addition to their own.
A major gifts rider must be executed in the presence of two witnesses in order for agents to make gifts greater than $500 annually to a single individual or charity. Specific language addresses whether or not an agent can make gifts to himself.
In the spirit of ensuring that your family’s needs are met, Littman Krooks is offering existing clients a no-charge, half hour meeting to review your power of attorney. Call any of our office numbers and ask for Valarie Chessler or Nicole Garcia.
Print 
PDF