NEW POWER OF ATTORNEY FORM IN THE STATE OF NEW YORK
June 13, 2021 has seen New York State usher in the use of a new Power of Attorney document. The old Power of Attorney will no longer be accepted after June 13, 2021 by lenders, banks and County Clerks, some of the most likely recipients or institutions whom are provided with Powers of Attorney to effectuate transactions.
Some of the biggest differences are the witness requirements to execute a POA, as the new 2021 Power of Attorney requires the principal’s signature be witnessed by two disinterested persons who are not named as agents in the Power of Attorney nor gift recipients under the Power of Attorney. The Power of Attorney still needs to be notarized, but one of the witnesses can also function as the notary.
There are also provisions for third parties to sign on behalf of a principal if the principal is physically unable to do so. This is at the principal’s direction, and the principal must still have capacity to ask the person to sign on their behalf. There is also greater forgiveness with respect to ministerial or typographical errors, and the new form also provides for some remedies in the event the party to whom the Power of Attorney is provided does not accept the Power of Attorney unreasonably. This has previously been an issue when certain institutions were unhappy with the grants or specific wording of a Power of Attorney and chose to reject them on that basis. They may be responsible for legal fees in this scenario in the future.
If you know someone who has a Power of Attorney, it is essential that they have legal representation from a law firm who knows the updated laws in New York. Please do not hesitate to contact us if you need assistance.
