The recent changes in the law provide greater clarity and protection to clients. Key changes include:
- The new form must be signed and notarized by both the principal and the agent (the person named in the Power).
- The principal may appoint a “monitor” to review records of transactions by the agent.
- The agent has specific legal responsibilities, including a “prudent person standard of care.” He/she must maintain records of all transactions, and make them available upon written request.
- The law explicitly requires banks to accept the new Power and forbids them from requiring their own forms.
- The agent is limited to making small gifts (up to $500) unless the principal also signs a “Statutory Major Gifts Rider” which must be signed by two witnesses.
Old Powers (signed pre-Sept. 1st) remain effective despite the new law. However, you should consider executing a new Power to take advantage of these increased protections.
Both current and prospective clients are advised to call us immediately to discuss how this new law impacts your situation. Please review our website for more information or to schedule an appointment.
