The New Power of Attorney: What Lawyers Need to Know

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On December 15, 2020, Governor Andrew Cuomo signed into law a significant amendment to the statute setting forth the requirements for power of attorney forms, taking effect 180 days after it is signed (June 13, 2021).

The much-anticipated legislation, Chapter 323 of the Laws of 2020, acts to vastly simplify and improve the statutory power of attorney form.

Summary of Major Changes to the New York Power of Attorney Law:

• “SUBSTANTIALLY CONFORMS TO THE WORDING” REPLACES “EXACT WORDING”, reducing the likelihood of the form being rejected for irrelevant and harmless errors. The new law creates a presumption in favor of the validity of a power of attorney form.

• STATUTORY GIFTS RIDER ELIMINATED. The authority to make gifts above “standard amount” will now be included in the modifications section in the power of attorney itself. If there is no gifting language in the modification, the authority to make gifts is now $5,000 in any given calendar year (an increase from the previous $500).

• SIGNING REQUIREMENTS

• After the Chapter Amendment, two witnesses are required (one of whom can be the notary) for all Powers of Attorney.

• The document may now be executed on behalf of a client who has a physical inability to sign the paperwork.

• ACCEPTANCE OF AND RELIANCE TIMELINE. Ten days in which to honor or reject, with exceptions.

• DAMAGES AND ATTORNEY FEES. The new legislation allows a judge to impose penalties (including attorneys’ fees) if banks or institutions unreasonably refuse to accept a valid power of attorney form.

• CHANGES TO THE FORM (gift transactions, modification section, witnessing, agents acting together)

Read the amended version of the legislation that was signed by the Governor of New York State here: NYS Power of Attorney Legislation.