Changes to power of attorney law coming in 2021

Patrick Connelly
By Patrick Connelly – Reporter , Buffalo Business First

Recent years have seen a wave of new laws come into play in New York state.

In 2020, two notable state laws that took effect were the plastic bag ban for retailers and the SHIELD Act, a cybersecurity measure that aimed to improve the electronic security of data held by businesses or nonprofits that aren't already protected by other federal or state mandates.

Leading the way in 2021 will be updates to paid-sick leave rules for employers and a modernization of the state’s surrogacy laws to reflect evolved reproductive needs.

A new law to take hold in June is big news on the legal end of estate planning and that's power of attorney. Final language is scheduled to be distributed in January, said Tyler Threehouse, an attorney in Olean who assists clients with wills, trust, health-care proxies and more at Threehouse Law Firm PC.

He said the current statute required power-of-attorney documents to conform exactly with the law language. The verbiage will now allow for more flexibility.

“I know a lot of attorneys have had issues with financial institutions or county clerks rejecting power of attorney because the language wasn’t exact,” Threehouse said. “(Now) as long as it substantially conforms with the terms of the statute, then it should be accepted."

The proposed effective date right now is June 13, he said, but a couple things still could be tweaked.

John Leone, partner at Gross Shuman PC in Buffalo, said documents were rejected over the years in instances where there were typographical errors, dates in incorrect spots and even for using an incorrect font. In cases where a power of attorney document is rejected, the rejected party is allowed to challenge the ruling and seek damages.

Details on gifting can be included directly in the power of attorney document. A competent individual with a disability and unable to sign a document can direct a person to sign on their behalf.

Leone said the changes are a positive move for those assisting elderly family members with financial affairs.

“You want to be able to do that as efficiently as possible without having to do an expensive Article 81 proceeding or a proceeding to enforce your power of attorney,” he said.

Threehouse said the legal updates are good for attorneys, too.

“It will make things easier on our end,” he said. “You are basically putting everything in one document. On our end, in terms of executing it, it will consolidate it.”

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