On July 15, 2014 House Law 1429 went into effect and drastically changed what is required under financial powers of attorney (POAs). The new law was in response to rising incidents of elder abuse where agents placed their own self-interests before the principal. As such, the new law, among many other changes, places limitations and requirements on an agents ability to make gifts, terminate trusts and change beneficiary designations. Seems simple, right?
The new law also places an affirmative duty on the agent to act in accordance with and preserve the principal’s estate plan and when making decisions to account for the principal’s foreseeable obligations for maintenance. Have you ever been involved in a situation where children don’t like their dad’s second wife? With this new law, seems like the agent has just taken on a lot of responsibility that is open to second guessing and attack.
Because this law was enacted in response to individuals taking advantage of the elderly or otherwise incapacitated individuals, this new does not apply in most commercial settings.
If you have any questions concerning the new POA law and how it impacts your estate plan or business dealings in general, please feel free to call the attorneys at Danziger Shapiro & Leavitt for a free consultation. We are more than happy to discuss how we can assist you with respect to updating your agreements and any other personal or business issue you care to discuss as well.
This entry is presented for informational purposes only and is not intended to constitute legal advice.