Conversations about the future can be tough. Luckily, one document that helps alleviate the stress is a Power of Attorney (POA). This legal document in New York helps appoint a trusted individual, referred to as your agent, to take over your financial responsibilities when you become unavailable or unable to do so. Assisting a senior parent or getting your own financial affairs in order requires knowing how to obtain a Power of Attorney in NY, as it is a vital step in Family Protection.
Most families only realize the need for this document when it is already too late, as in cases of sudden hospitalization or dementia. In such cases it can be very complicated. At bartallaw.com, we often see how much relief a properly executed POA can bring to families in these challenging scenarios so they can focus on the care instead of fighting with the banks.
How to Obtain Power of Attorney in New York?
Getting power of attorney in New York starts with a willing principal who has the mental capacity to understand what they are signing. This is often where people face challenges—especially when trying to get power of attorney over someone who has already lost mental capacity, such as in cases of advanced Alzheimer’s. If your loved one is unable to understand the document, you cannot legally obtain power of attorney. In such cases, you would need to pursue legal guardianship instead.
How to Get Power of Attorney for a Parent?
A common question is, “How do I get financial power of attorney for a parent?” or “How do I become my dad’s power of attorney?” The answer is that your parents must willingly appoint you using the forms.
Choosing the Right Agent and Power of Attorney Forms
If the person still has mental capacity, the next step is selecting the right agent and completing the correct paperwork. In New York, you must use a “Statutory Short Form” to choose your agent. Since a 2021 law change, older forms or generic templates may be used, but they might be rejected by institutions.
Where to Find Power of Attorney Forms
If the person still has mental capacity, the next step is selecting the right agent and completing the correct paperwork. In New York, you must use a “Statutory Short Form” to choose your agent. Since a 2021 law change, older forms or generic templates may be used, but they might be rejected by institutions.
Validating the Power of Attorney Document
To make the document valid, it must be signed by two witnesses and a notary public.
Does Power of Attorney Expire?
A common misconception is that power of attorney documents have expiration dates. Generally, a power of attorney lasts as long as the principal is alive and not revoked. However, the type of power of attorney matters. Most people use a “Durable Power of Attorney,” which doesn’t expire, even if the principal becomes ill or disabled. In contrast, a non-durable power of attorney ends if the principal becomes incapacitated.
How to Locate Power of Attorney Documents?
One challenge families face is locating a power of attorney. Unlike property deeds, POAs are not automatically filed in public registries. They are private documents. Unless the POA was used for real estate transactions and filed with the County Clerk, there is no centralized system. You will need to rely on the original documents kept by the principal, agent, or attorney.
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Power of Attorney Agent Responsibilities
Once appointed to that position and granted that authority, the agent is able to do a lot, but not everything. The agent is a fiduciary, which means they must serve the principal’s interests alone when exercising the granted authority, not their own.
How to Endorse a Check as Power of Attorney
With respect to executable functions under a power of attorney document, the agent must understand procedural aspects, such as how to endorse a check as power of attorney. Typically, you’d write the principal’s name, followed by “by [Your Name], as Agent.” This informs the bank you are acting as a proxy.
Can Power of Attorney Transfer Money to Themselves?
One of the most commonly asked questions is whether power of attorney can transfer money to themselves. The answer is almost always no, unless the document includes a specific Rider expressly granting the agent the authority to make gifts or transfers. Without such authority, transferring money to oneself constitutes self-dealing, which is illegal.
Can Power of Attorney Add Beneficiaries to Bank Accounts?
Agents who have taken the time to understand how to add beneficiaries to bank accounts often ask whether this is allowed under power of attorney. While POA can, in some cases, change beneficiary designations, this is only possible if that specific authority has been included in the modifications section of the document. Most forms are designed to prevent agents from unintentionally altering the principal’s estate plan.
Limitations of Power of Attorney After Death
The most important limitation, without a doubt, is death. Can a power of attorney cash a check after death? Absolutely not. The moment the principal dies, the power of attorney is void. The authority then transfers to the estate’s executor.
How to Revoke a Power of Attorney?
There are many life circumstances that allow a trusted individual to suddenly become untrustworthy within a matter of days or years. If you need to know how to retract a power of attorney, the good news is that it is a linear process. However, it is still important that this process is done formally.
You cannot just dispose of the document and expect it to not exist anymore. You must draft and sign a document formally titled a “Revocation of Power of Attorney” and deliver this to your agent. More importantly, you need to notify any financial institution that has the previous POA on record. If you do not notify the bank, they might keep accepting the agent’s instructions until you notify them, negating the revocation.
Should you need to revoke an agent’s power of attorney due to that agent’s misconduct, it is important to prepare a new power of attorney right away. This is also a very sensitive time as the authority must not be dormant, or else your assets become very vulnerable. You need to cut off the previous agent’s authority, and it must be done very quickly to protect your assets.
Conclusion
In New York, getting a power of attorney is not just about completing a form; it is about guardianship and faith. Finnegan, the details matter, whether it is about how to administer a parent’s finances, or about preparing your future. Missing an initial or using the wrong form can result in a bank denying your power at the most critical moment.
Lastly, and for the sake of your family ties and your peace of mind, you should set aside some time to speak with someone in order to make sure that the focus is on the preservation of your family assets, and that your family’s unique dynamics are honored.
Legal Cover for Your Family
We assist families in the creation and/or revision of New York Power of Attorney documents and ensure that the documents meet banking standards. To keep your family protected, contact us to discuss the steps today. To learn more about how we can help you, please visit bartallaw.com.
Contact Us Now or call +1-718-475-2115 to schedule your session.