In a major victory for New York State Bar Association advocacy on behalf of its members, of which we are active members, Gov. Andrew M. Cuomo has signed a new NYSBA-advanced bill into law that simplifies and improves for consumers the state’s power of attorney form.

 A power of attorney is one of the most widely used legal documents, allowing people who fear they will no longer be able to manage their own financial affairs to transfer that power to someone else. Doing so avoids the need for a time consuming and expensive guardianship proceeding when a person becomes incapacitated.

The current power of attorney form proved to be too complex, costly and difficult for individuals to use. Residents of nursing homes and long-term care facilities found it nearly impossible to fill out during the pandemic when an attorney was not present. Its rigid requirement that the exact language of the statute be incorporated in the document meant that the form could be invalidated for harmless errors.

 The new law, which takes effect in 180 days, makes rejection of the document less likely because it allows language that substantially conforms with the statute rather than requiring the form to incorporate the exact wording. It also discourages banks and other financial institutions from improperly refusing to accept the form by allowing a judge to impose penalties and attorney fees against institutions that unreasonably refuse to accept a consumer’s valid power of attorney form.

 Additionally, the reforms in this legislation eliminate the Statutory Gifts Rider.

 “The reform of the power of attorney law is a big win for every New York resident and the New York State Bar Association,” said NYSBA President Scott M. Karson. “The coronavirus pandemic has forced us to reevaluate every aspect of our lives, and this important improvement could not come at a better time. It will protect our state’s vulnerable residents by helping them through a critical process at a time when a legal adviser may not be able to be at their side.”

Most importantly, the new law (A.5630-A/S.3923-A) creates a presumption in favor of the validity of a power of attorney form.

Click here  Okrent NY Changes to Power of Attorney Laws Effective 6.13.21power point and here for a downloadable pdf of the Okrent Note Slides NY Changes to Power of Attorney Laws Effective 6.13.21