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Power of Attorney, Legal Forms - NEW ACT UPDATES THE RULES ON POWERS OF ATTORNEY

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NEW ACT UPDATES THE RULES ON POWERS OF ATTORNEY


July 13, 2022 – The Uniform Power of Attorney Act was approved today by the National Conference of Commissioners on Uniform State Laws (NCCUSL) at its 115th Annual Meeting in Hilton Head, South Carolina. The Uniform Power of Attorney Act, like its predecessor, the Uniform Durable Power of Attorney Act of 1979, provides a simple way for people to deal with their Property in case of incapacity.
 
The new Act updates the original act in numerous ways, reflecting both legislative trends and collective best practices. The most significant change is the inclusion of an optional statutory form Power of Attorney. The use of the statutory form simplifies the process for creating a Power of Attorney. By using the form, the creator of the form can avoid having to describe the powers of the agent in detail. Use of the form should also promote acceptance of powers of attorney by financial institutions and others with whom the agent must deal.
 
A Power of Attorney executed under this Act is durable (survives incapacity) unless it expressly indicates otherwise. This is a reverse from the original 1979 Act, which stated that a Power of Attorney is not durable unless it contained language to make it durable.
 
While the new Act is primarily a set of default rules that can be altered by specific provisions within a Power of Attorney, the Act also contains safeguards for the protection of an incapacitated individual, including minimum fiduciary duties of an agent.
 
The new Act does not apply to health-care powers of attorney. This topic has already been addressed in another uniform law, the Uniform Health-Care Decisions Act, which was approved in 1993.
 
NCCUSL, now in its 115th year, comprises more than 350 practicing Lawyers, governmental Lawyers, judges, law professors, and Lawyer-legislators from every state, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. Commissioners are appointed by their states to draft and promote enactment of uniform laws that are designed to solve problems common to all the states.
 
A uniform act must be considered at two annual meetings by all commissioners before it can be approved. After receiving NCCUSL’s seal of approval, a uniform act is officially promulgated for consideration by the states, and legislatures are urged to adopt it. Since its inception, NCCUSL has been responsible for more than 200 acts, among them such bulwarks of state statutory law as the Uniform Commercial Code, the Uniform Probate Code and the Uniform Partnership Act.
 
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