The Importance of a Well-drafted Power of Attorney

A Power of Attorney (“POA”) is a powerful legal document that allows a person to give legal authority to a designated person (your “agent”) to handle your finances and make other business decisions on your behalf if you are unable to do so (either physically or mentally).

During times of crisis, having a properly drafted POA allows your agent to engage in planning to help preserve your assets and may also serve to avoid a lengthy and expensive Guardianship proceeding. However, not all POA documents are created equal and are properly drafted for your needs.

New York provides a standard form POA known as the statutory short form, however, this document offers limited powers and often fails to include the Statutory Gifts Rider that supplements the POA. Without the Statutory Gifts Rider, your agent will not have the broad power necessary to transfer assets and engage in asset preserving planning on your behalf.  Through years of drafting POA’s for our clients, we have modified the standard POA and developed a document that ensures your agent can effectively protect your assets in times of crisis.

As we enter the new year, we encourage you to review your POA to ensure that it is properly drafted. Keep a mindful eye to confirm that your POA includes the New York Statutory Gifts Rider to ensure that your agent is able to protect your assets in time of crisis. If you are unsure if your documents are properly drafted, consult with an experienced estate planning attorney.