Power of attorneys are necessary, in many cases, for individuals or businesses wishing to conduct business via a third party. Under § 5-1501 of New York General Obligations Law, a Power of Attorney is “a written document, other than a document referred to in section 5-1501C, by which a principal with capacity designates an agent to act on his or behalf.” This simple document is necessary for a variety of transactions.
For more information on Section 5-1501C (Principal-Agent Relationships please see: Power of Attorney Granting an Agent Actual Authority to Act for a Principal in an Agency Relationship.
Legal Requirements for a New York Power of Attorney
Power of Attorney executed in New York is valid, if it complies with the requisites provided under § 5-1501B of NY General Obligations Law:
a) Be typed or printed using letters which are legible or of a clear type no less than twelve-point in size, or, if in writing, a reasonable equivalent thereof.
b) Be signed and dated by a principal with capacity, with the signature of the principal duly acknowledged in the manner prescribed for the acknowledgment of a conveyance of real property.
c) Be signed and dated by any agent acting on behalf of the principal with the signature of the agent duly acknowledged in the manner prescribed for the acknowledgment of a conveyance of real property.
d) Contains the exact wording of “Caution to the Principal” and “Important Information for the Agent” in § 5-1513 of NY General Obligations Law.
General Obligations Law § 5-1501B,
Further, the Power of Attorney in New York may either be a statutory short form power of attorney or a non-statutory power of attorney. The choice of which power of attorney to utilize may have implications. Please don’t just throw one of these together via a search on the internet – we see too many problems caused by a lack of an understanding of the need and risks of a Power of Attorney.
The Importance of a Power of Attorney in Business and Other Transactions
Thru Power of Attorney, you may appoint another person or give your agent the authority to handle the matters enumerated in § 5-1502A to § 5-1502N of NY General Obligations Law such as, but not limited, to transactions concerning real estate transactions; banking transactions; estate transactions; claims and litigations; and almost every type of business or personal transaction that you can imagine.
Many issues arise in regard to a Power of Attorney. One of the major issues we see is the lack of an understanding of a Durable Power of Attorney. With a Durable Power of Attorney, the power granted is not automatically revoked by the incapacity of the principle. In many cases this is a benefit to the principle and in others it can be a major detriment to the family of the principal. Alongside a Power of Attorney we believe, in most cases, it is also essential to have a Living Will (in short a power of attorney for healthcare decisions) and a Last Will and Testament.
For more information on Power of Attorneys, Living Wills and Last Wills and Testaments in CT, New York or New Jersey, please: Schedule a Call with a Lawyer.
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