With the New Year comes some changes in the law. One of these changes is a new power of attorney form which will be going into effect and 180 days from when the bill was signed by Governor Cuomo which means it will be effective in the summer 2021. The purpose of the new power in the new form is to streamline the process of a power of attorney to ensure sure that it can be effectuated. The intent is people can use the power of attorney when needed with all of with their financial institutions. Unfortunately, many times powers of attorney were not accepted by a specific institution even though it was a legal form pursuant to the General Obligations Law.

Moreover, the power of attorney does not match the exact wording as required by law as long as substantially conforms it can be included in a minor differences and the institution must accept it the new law also changes the signing required for people with disabilities who can’t physically sign the power of attorney. People unable to sign will be able to direct someone else to sign on their behalf with two witnesses present. Banks and other institutions are asked to accept a power of attorney they can request an agent certification of any factual matter in opinion of counsel as to any matter but third parties are instructed not to refuse to honor the power of attorney without reasonable cause the wording is about the same as in the current law but the impact will be different.

 Third parties have 10 days to honor the power of attorney and notice of any objection must be sent in writing to the principal and the agent unless there is a suspicion of abuse and the case can be referred to adult protective services. No notice is required if there is suspicion of abuse. This is to protect the elderly and disabled from someone taking advantage of them by misusing a power of attorney; however, the strength of this new law is that third party such as banking institutions cannot unilaterally refuse to honor the power of attorney and require their own form or certain requirements that are not part of the state new the new law.

 If the third-party refuses to honor a valid power of attorney they can be sued for damages. The only downside is that they are also now exempt from liability if they effectuate a power of attorney and it’s  not going to be a random matter of whether or not a power of attorney will go throw as long as it is a valid power of attorney there is no suspicion of elder abuse or a abusing a disabled person the power of attorney will be honored and the banking institution with 3rd party will not be held liable if in fact it was a forgery or not a valid power of attorney.

 The pair a power of attorney is a good mechanism and of end legal text strategy to ensure that you have the ability to have your expenses paid and your needs taken care of if you become disabled or on or unable to pay your bills get your arm documents to an accountant a deal with any kind of banking issues especially in times of illness or of someone is in a nursing home this is the reason a power of attorney is so important for if someone to have especially if there is no spouse that there are joint accounts with or someone that can file AA joint return if you do not have a spouse or spouse has not is deceased it is very important to name someone as your power of attorney to I be able to continue your life and what needs to be done if you are unable to.