Media Contact
We produce a wide variety of consumer-friendly or technical resources including authored publications, industry resource materials, answers to your most frequently asked questions, legal reports and updates, key estate planning documents, and much more. We are ready to answer your questions and provide you with detailed information for your article or be a speaker for an upcoming event. Please call or email us for quick responses to your media inquiries.
The Law Offices of Saul Kobrick, P.C.
800-295-1917
information@kobricklaw.com
SUBSTANTIAL REVISIONS TO THE NEW YORK LAWS GOVERNING THE POWERS OF ATTORNEY
Posted On 9/10/2009
Dear Clients, Colleagues and Friends,
I would like to take this opportunity to inform you of substantial revisions to the New York laws governing the Powers of Attorney. In order to curb financial abuse, and clarify ambiguities, A new bill was signed into law by Governor David A. Paterson in January of this year, which took effect on September 1, 2009. The new laws provide new provisions to both content and execution, creates specific fiduciary responsibility for agents, and requires a new rider for major gifting, called the Statutory Major Gift Rider (SMGR).
IMPORTANT NOTICE
If you have a properly executed durable
power of attorney dated before
September 1, 2009 it still
remains valid and enforceable.
A durable power of attorney is a very powerful document, and one of the most important tools to have in place for both estate planning and Medicaid planning purposes. The new law is aimed at ensuring that the principal understands the power being granted to the appointed agent as well as the consequences of such authority, particularly as it relates to gift-giving and asset transfers. This development makes it especially important to seek out the advice of an experienced Estate Planning and Elder Law Attorney who is familiar with these significant changes in the law and can help you ensure you have all the right documents in place. If you are unsure whether or not you currently have a valid Power of Attorney, or you wish to upgrade to the new form with it's added protections, please call our office at (800) 295-1917.
KEY CHANGES IN THE LAW
Gift Giving and Asset Transfers: If the principal wishes to grant their agent (the person being appionted to act) authority to make major gifts and asset transfers, the principal must now sign a rider to the power of attorney. In this rider, the principal will specify the amount and types of assets the agent may gift and also the parties to whom the agent may make gifts.
Signature of Agent: A power of attorney must now be signed by the appointed agent(s) as well as the principal. The power of attorney now also contains instructions to the agent, letting him/her know of their responsibilities and fiduciary duties, such as to act according to the principal's instructions or in their best interest. The agent does not need to sign the power of attorney immediately, however the document does not become effective until the date it is signed by the agent before a notary public.
Monitor: The new law allows an option for the principal to appoint a monitor to oversee the actions of the appointed agent. If a monitor is appointed, he/she has the authority to compel the agent to turn over copies of any transactions entered into on behalf of the principal, and to account for all transfers and expenditures.
Compensation: An agent may now be paid for duties performed under the power of attorney, or be reimbursed for expenses incurred on the principal's behalf, but only if the principal expressly grants compensation to the agent in the power of attorney.
WHAT THIS MEANS FOR OUR CLIENTS
As a client of our firm, you have most likely executed your power of attorney before the new law took effect. That power of attorney is still valid. However, in order to avoid problems or complications in the future, it is advisable for you to come into our office to upgrade to the new forms.
If you wish to upgrade to the new form with its added protections please call us at (800) 295-1917. Allow yourself the peace of mind knowing your power of attorney will hold up not just now, but for years to come!
Sincerely,
Attorney
BACK TO THE NEWS
SHARE
PRINT
