The creation of a Power of Attorney document is a critical document that can have far reaching consequences as it can convey very broad powers, and if not used properly, can lead to problems. Having an experienced estate planning attorney assist with the preparation of this important document is crucial.
While it may be tempting to create a POA using an online tool, this method may omit to ask certain questions as quite often a POA can be used for expanded estate planning powers to be conferred upon the agent (person who acts on behalf of the person conveying the enumerated powers, known as the principal).
It is important to note that the standard form of the New York Statutory Power of Attorney was amended in June, 2021 and now has completely different requirements, and should be drafted by a competent estate planning attorney.
The Statutory Gifts Rider which accompanied the prior version of the Power of Attorney has been deleted, and now any additional powers which include broad based gifting and estate planning powers have to be carefully tailored in the modification section of the new form.
Without this important component, the POA will be devoid of any real important powers for the agent who may need to effectuate transfers, gift, create trusts, and other such estate planning tools for Medicaid planning or to protect the principal from creditors.
There are also additional signing and witnessing requirements wherein two (2) disinterested parties must witness the Principal sign the POA in the presence of a Notary Public. This element is crucial in order to maintain the integrity and validity of the form. The Agent must continue to sign their portion before the presence of a Notary Public.
The creation of an important document like the Power of Attorney should be left to an experienced attorney to assist with its creation to achieve the particular needs of the client.