What Does a Power of Attorney Allow Me to Do?

A power of attorney is a legal document allowing a person (called an agent) to act on behalf of and in the name of the principal. This power of attorney can be durable, which allows the agent to act on behalf of the principal, even if the principal loses capacity, or it could be springing, which allows the agent to act on behalf of the principal only in the event that the principal loses capacity.

What are the Acts that I Can Authorize My Agent to Do?

Under the New York statutory form for the power of attorney, you can authorize your agent to do any or all of the following:

• real estate transactions;
• chattel and goods transactions;
• bond, share, and commodity transactions;
• banking transactions;
• business operating transactions;
• insurance transactions;
• estate transactions;
• claims and litigation;
• personal and family maintenance;
• benefits from governmental programs or civil or military service;
• health care billing and payment matters;  records, reports, and statements;
• retirement benefit transactions;
• tax matters;
• all other matters;
• full and unqualified authority to the agent(s) to delegate any or all of the foregoing powers to any person or persons whom the agent(s) select;
• all of the above.

In the modifications section, you could also authorize your agent to make gifts, either to themselves or to third persons, up to a certain amount. In the absence of any express authorization, your agent can gift up to $5000 per year on behalf of the principal.

Legal Requirements of a Power of Attorney

In order to be effective, a power of attorney in New York must be:

• signed and dated by the principal with capacity;
• acknowledged before a notary public;
• accepted, signed and dated by the agent before a notary public;
• typed or printed using legible letters of at least 12 point in size or reasonable equivalent (if in writing);
• includes “Caution to the Principal” and “Important Information for the Agent” sections.

Acting Under a Power of Attorney

When an agent acts on behalf of a principal, the third party affected by the transaction (such as a financial institution for banking transactions or a buyer for real estate transactions) usually require the presentation of the power of attorney.

For this reason, to revoke a power of attorney, you must not only provide written notice of the revocation to your agent but also to third parties who may have acted upon in, including financial institutions where your accounts are located. Without such written notice of revocation to third parties, they may not be held liable for acting under the power of attorney you initially issued, presented, and confirmed.

A power of attorney grants an agent considerable power, which can be abused if it remains unchecked. We have handled many cases where agents have acted in conflict with their fiduciary duties to the principal, to the detriment of the principal’s children/heirs. For this reason, you need to seek the counsel of an experienced lawyer before signing any power of attorney to ensure that checks or monitors on your agent may be made under the modifications section and to fully understand and comprehend the consequences of signing a power of attorney.

If you need assistance in drafting a power of attorney, we, at the Law Offices of Albert Goodwin, are here for you. We have offices in New York City, Brooklyn, NY and Queens, NY. You can call us at 212-233-1233 or send us an email at [email protected].