Did you know that, on June 13, 2021, the New York Statutory Short Form Power of Attorney (POA) goes into effect? The new law brings significant changes to New York’s requirements for how to validly execute a POA as well as to the POA form itself.
While a POA validly executed prior to the new law going into effect will be grandfathered in and, therefore, be enforceable even after June 13th, ALL POAs executed after June 13th will need to properly observe the new law’s requirements. Let us take a look at what you need to know about New York’s new power of attorney law.
Under the new law, a POA will no longer be required to conform to the exact wording of Section 5-1513 of the General Obligations Law. Instead, a POA form must only substantially conform to the statute’s wording. Furthermore, the Statutory Gifts Rider has been eliminated and gifting provisions instead may be included in the Modifications section of the actual POA form.
Under the requirements of the new law, to validly execute a POA, a principal must have capacity and must sign, initial, and date the form. If directed by the principal, a third party may sign for the principal. The POA must, however, be acknowledged and witnessed by two people other than those named in the instrument as either agents or permissible gift recipients.
A POA is a powerful legal instrument and needs to be handled and executed with due care. Our firm is available to draft POAs in observance with the most recent New York legal requirements. We also invite organizations to contact us if you would like any training, either in person or by Zoom, on this important new law.