On
May 23, 2012, the Governor of Michigan signed a new law pertaining to Durable
Powers of Attorney. The new law, Public
Act 141 of 2012, lists new requirements for Durable Powers of Attorney, which
become effective for all Durable Powers of Attorney signed after September 30,
2012.
A
Durable Power of Attorney is a legal document that designates an agent who can
act on your behalf for all of your financial transactions. Most of the time Durable Powers of Attorney
are effective only upon someone’s disability.
The
new law requires that two witnesses sign the Durable Power of Attorney, or that
it is notarized, or both. Further, the
Durable Power of Attorney is now not effective unless the designated agent
signs an acceptance of designation that sets forth all of their duties. This is the most significant change in the
law.
While
the law is only prospective and has no legal effect on Durable Powers of
Attorney signed before October 1, 2012, it is highly probable that the banks
will begin to refuse to honor any Durable Powers of Attorney that do not comply
with the new requirements. It is a good
idea to have an attorney look at your Durable Power of Attorney or revise it to
comply with the new law, thus eliminating any potential problem in the future.
You can read the
new law here:
http://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0141.pdfIf you are interested in learning more about powers of attorney, estate planning, probate, family law or divorce, or have a question about those issues, please call Wendy Alton at 248-380-9976 or email her at walton@fb-firm.com.
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