On December 15, 2020, Governor Cuomo signed into law an amendment to the General Obligations Law concerning the New York State statutory short form power of attorney. The legislation enacts major changes to the rules governing the content, execution, and use of the form, which are intended to modernize and simplify the form, and prevent error and abuse.
The changes go into effect June 13, 2021. A copy of the bill can be downloaded via The New York State Senate webiste HERE.
Major changes include:
- Changes to the execution requirements
- The statutory gift rider was eliminated. Instead, gifting provisions are to be included within the power of attorney.
- Third parties must honor the agent's authority;those who unreasonably refuse to honor the statutory short form now are liable for damages, attorney fees and costs.
- The short form language no longer needs to include the exact wording as provided in the statute but instead must substantially comply with the statutory language.
- Powers of attorney properly executed prior to the effective date remain in effect.
- A chapter amendment with additional changes is expected soon pursuant to the bill's signing memo. It is expected to be approved and signed by the Governor in short order.
- A copy of the bill can be downloaded HERE.
- Stay tuned for more information, updates and resources.