New York Power of Attorney Law Changes (2021 GOL Amendments): What Changed and What It Means for Existing POAs

Last updated: June 2024 · Reviewed by: Albert Goodwin, Esq., estate and probate attorney admitted to practice in New York. Read Albert Goodwin's full bio.

On December 15, 2020, then-Governor Andrew Cuomo signed legislation (S.888-A/A.5630-A) substantially amending New York's power of attorney statute, codified at General Obligations Law (GOL) Article 5, Title 15, § 5-1501 et seq. The amendments took effect 180 days later, on June 13, 2021. This page explains, with citations to the statutory text, exactly what changed, why it matters, and — most importantly — what holders of older New York powers of attorney should do now.

This is a New York–specific guide. The rules below apply to powers of attorney governing property and financial transactions in New York. They do not apply to health care proxies (governed by Public Health Law Article 29-C) or to powers of attorney executed under another state's law.

What a New York Power of Attorney Does

A power of attorney (POA) is a legal document by which a principal authorizes an agent to act on the principal's behalf in property and financial matters. Under GOL § 5-1502A through § 5-1502N, the principal may grant authority over specific categories — real estate transactions, banking transactions, chattel and goods transactions, bond, share and commodity transactions, estate transactions, and more — or may grant authority over all of them.

A New York statutory short form POA is durable by default (GOL § 5-1501A): it survives the principal's later incapacity. Once the principal loses capacity, the principal can no longer revoke it; only a court can terminate or modify a POA for an incapacitated principal, typically through an Article 81 guardianship proceeding under the Mental Hygiene Law.

Old Law vs. New Law at a Glance

1. Elimination of the Separate Statutory Gifts Rider

Under the prior law, the standard short form POA did not, by itself, authorize the agent to make gifts. To allow gifting — even modest gifts the principal clearly wanted — the principal had to execute a separate document, the Statutory Gifts Rider (formerly GOL § 5-1514), with its own witnesses, notarization, and specific language.

This created a common, painful problem: countless POAs signed under the old law lack a Gifts Rider. The agents named in those documents cannot make gifts — not even to fund Medicaid planning, pay a grandchild's tuition, or continue a pattern of annual gifts the principal had always made — without going back and executing a separate Rider. If the principal has since lost capacity, that is impossible.

The 2021 amendments folded gifting into the main form. The agent may now make gifts up to $5,000 in the aggregate per calendar year without any special modification, and the principal may authorize larger or different gifts in the Modifications section of the form. Note this change applies prospectively: a pre-2021 POA without a Gifts Rider still has no general gifting authority.

2. Two-Witness Execution Requirement

The old law required a POA to be executed "in the manner required for a deed" — meaning a single notarization and no witnesses. GOL § 5-1501B now requires the principal to sign (or direct another to sign) before a notary public and two witnesses. The witnesses must be present, must be at least 18, and the agent named in the document cannot serve as a witness. The notary may double as one of the two required witnesses.

The witness requirement mirrors the formality of will execution under EPTL § 3-2.1 and adds a layer of protection against fraud, forgery, and undue influence — meaningful protections given how much financial power a POA confers. If you are concerned an agent has abused a POA, see our page on what to do about an agent abusing a power of attorney.

3. The Substantial-Compliance Standard

Before 2021, banks and other institutions frequently rejected POAs over trivial deviations from the exact statutory wording — a misplaced comma, an extra clause, slight reformatting from a word-processing template. GOL § 5-1501B(1) now validates a POA that is in "substantial compliance" with the statutory form. A document is valid if it follows the form in substance, even with minor wording or formatting variations. This sharply reduces the technical grounds an institution can use to refuse a properly intended document.

4. Damages for Unreasonable Refusal to Honor a Valid POA

Perhaps the most practically powerful change addresses a chronic frustration: banks refusing to honor valid POAs. Institutions would insist on their own internal forms, demand fresh notarization, or simply decline unfamiliar documents. Under GOL § 5-1504, a third party that receives an acknowledged statutory short form POA must either honor it or, within ten business days, issue a written refusal with reasons; if the agent supplies the requested cures, the institution must then honor the POA within seven business days.

If an institution unreasonably refuses, GOL § 5-1510 permits a special proceeding in which the court may compel acceptance and award damages, including reasonable attorney's fees and costs.

Concrete example: a bank rejection

Suppose an agent presents a properly executed 2022 POA to a bank to access an incapacitated parent's checking account, and the bank says it will only accept its own form. The agent should:

• Present the POA together with a written demand for acceptance, requesting that any refusal be put in writing with reasons (as § 5-1504 requires).
• Promptly supply any reasonable additional documentation the bank requests — for example, an agent's affidavit under GOL § 5-1504(2) stating the POA is in effect and the agent's authority has not been revoked or terminated.
• If refusal continues without good cause, send a follow-up letter citing GOL § 5-1504 and § 5-1510 and putting the institution on notice of potential liability for attorney's fees and costs.
• If still refused, file a special proceeding to compel acceptance, brought in the Supreme Court of the county where the principal resides or where the institution is located, seeking an order directing acceptance plus damages.

Sample demand language

Counsel often include language along these lines in a demand letter (adapt to your facts; this is illustrative, not legal advice):

"Enclosed is an original New York Statutory Short Form Power of Attorney, properly executed and acknowledged in compliance with General Obligations Law § 5-1501B, together with the agent's affidavit under GOL § 5-1504(2). Pursuant to GOL § 5-1504, please honor this Power of Attorney or provide a written explanation of any refusal within ten business days. Please be advised that an unreasonable refusal to honor a valid Power of Attorney may subject [Institution] to a special proceeding under GOL § 5-1510, including liability for the principal's or agent's reasonable attorney's fees and costs."

5. Good-Faith Safe Harbor for Third Parties

Balancing the refusal penalty, GOL § 5-1504 protects institutions that accept a POA in good faith. A third party that reasonably relies on a properly executed POA — and may also rely on the agent's affidavit and, where appropriate, an opinion of counsel — is generally shielded from liability even if the document later proves defective or the agent exceeded authority. The safe harbor and the refusal penalty work together: institutions that accept reasonably are protected; institutions that refuse unreasonably face damages.

Do Older Powers of Attorney Need to Be Re-Signed?

This is the question most clients ask, and the answer is nuanced.

• Old POAs remain valid. The 2021 amendments did not invalidate powers of attorney executed under the prior law. A POA validly signed before June 13, 2021 continues to be legally effective according to its terms (GOL § 5-1501C). You are not legally required to re-sign solely because the law changed.
• But re-signing is often wise. A new POA gains the benefit of the substantial-compliance standard, the integrated gifting authority, and — importantly — the leverage of the unreasonable-refusal remedy, which makes bank acceptance smoother in practice.
• Gifting is the key trigger. If your old POA lacks a Statutory Gifts Rider and you want your agent to be able to make gifts (for Medicaid planning, family support, or tax planning), the simplest path is to execute a new POA under current law while you still have capacity.
• Capacity is time-sensitive. If the principal is approaching incapacity, a new POA should be executed now. Once capacity is lost, no new POA or Gifts Rider can be signed, and the family may be forced into an Article 81 guardianship.

Practical Steps for Holders of Pre-2021 POAs

• Locate and review your existing POA. Confirm whether a Statutory Gifts Rider was signed and what categories of authority were granted.
• Decide whether to update. If gifting authority, broader powers, or smoother institutional acceptance matters to you, executing a new statutory short form under GOL § 5-1501 is usually the cleanest fix.
• Execute with the new formalities. Sign before a notary and two disinterested witnesses (the agent cannot witness).
• Communicate. Tell your agent and family which document is now current, and revoke superseded POAs in writing where appropriate.
• Keep multiple originals. Banks and brokerages often retain an original on file, so having several executed originals avoids delays.

Related Estate-Planning Resources

• Advance directives in New York
• How to avoid probate in New York
• Power of attorney abuse — what you can do
• Breach of fiduciary duty by an agent or fiduciary

Frequently Asked Questions

When did New York's power of attorney law change?

The amendments were signed December 15, 2020 and took effect June 13, 2021, amending General Obligations Law Article 5, Title 15.

Is my old power of attorney still valid?

Yes. A POA validly executed before June 13, 2021 remains effective. The 2021 amendments did not invalidate prior documents, but a pre-2021 POA without a Statutory Gifts Rider still cannot authorize gifts.

Do I need two witnesses for a New York POA now?

Yes, for POAs executed on or after June 13, 2021. The principal must sign before a notary and two disinterested witnesses; the notary may be one of the witnesses, but the agent cannot be a witness.

Can my agent make gifts?

Under a POA executed on or after June 13, 2021, the agent may make gifts up to $5,000 in the aggregate per year without special modification; larger or different gifts require authorization in the Modifications section. Under the old law, gifting required a separate Statutory Gifts Rider.

What can I do if a bank refuses my power of attorney?

You may demand written reasons for the refusal under GOL § 5-1504, supply an agent's affidavit, and — if the refusal is unreasonable — bring a special proceeding under GOL § 5-1510 seeking an order to compel acceptance plus attorney's fees and costs.

Speak With a New York Estate Attorney

Although there is a statutory short form, drafting a power of attorney that fits your goals — with appropriate modifications, gifting authority, and safeguards against agent misconduct — benefits from experienced counsel. The Law Offices of Albert Goodwin assists New York clients with powers of attorney, estate planning, and disputes over fiduciary misconduct. We have offices in New York City, Brooklyn, and Queens. Call 212-233-1233 or email [email protected].

This article is provided for general information about New York law and is not legal advice. Reading it does not create an attorney-client relationship. For advice on your specific situation, consult a licensed New York attorney.