Pursuant to Chapter 644 of the Laws of 2008 a new statutory form of Power of Attorney will go into effect. The new statute was enacted in order to stem perceived abuses on the part of attorneys in fact under the current Power of Attorney form. The intent is that the new form will more clearly define the actual powers and authorities of the fiduciary.

The statute applies to Powers of Attorney executed within the State of New York on or after September 1, 2009. Powers of Attorney executed before September 1, 2009 are grandfathered. If properly executed, they will continue to be valid. As a practitioner you will need to be careful as September 1, 2009 approaches to make sure that you are not sending out the current form when it may not be executed in time.

The changes to the form are numerous. The major changes are as follows:

1. The person who was formerly known as the “attorney in fact” is now defined as the Agent.
   
    
2. The agent must now execute the Power of Attorney in order to make it effective. This is a big change, but as the Agent will need to be present when using the power they will certainly be available to sign.
   
    
3. In order for the Agent to have the authority to make “major gifts” (defined as gifts of more than $500.00), the Principal must execute a separate Statutory Major Gifts Rider simultaneously with the execution of the Power of Attorney.
   There must be two witnesses to the execution of the Statutory Major Gifts Rider.
   
    
4. Gifts by the Agent to himself or herself must be specifically authorized in the Statutory Major Gifts Rider.
   
    
5. The Principal can choose to appoint one or more people to monitor the activities of the Agent.
   
    
6. The Principal can address the issue how an Agent is to be compensated, if at all.
   
    
7. In the case of Multiple Agents, the Principal can now designate whether the Agents can act separately or must act together.

The new Statutory Power of Attorney and the Statutory Major Gifts Rider are now available on the Chicago Title website – titleinsuranceny.com. Just log in and go to Library of Real Estate Forms. You will want to save this website in your favorites.

If you have any questions or require any assistance please do not hesitate to contact company counsel.