Don’t be surprised if banks start rejecting your normal durable power of attorney. New requirements for durable powers of attorney, compliments of PA 141, require agents to sign an acknowledgment of duties before exercising power under the document. This new requirement does not apply to any power of attorney executed before October 1, 2012 (notwithstanding the legislation’s “immediate effect”). Harold Schuitmaker advised attendees at this year’s Annual Probate and Estate Planning Institute that lawyers should begin to include the new acceptance provisions, lifted right from the statute, in their powers of attorney now. Banks really like having a signed acceptance as a limitation on their liability and they may begin rejecting powers of attorney that don’t include an acceptance. Also, bank staff may think that the statute’s “immediate effect” means that powers of attorney executed before the October 1, 2012 date specified in the state must have an acceptance. Save yourself some trouble by including acceptances in your powers of attorney starting today.
Also, think about posting the acceptance form on your website for clients with existing powers of attorney to download and present to their agents for signature. This will save them the trip to your office and the attorney fee.
For an acceptance form, take a look at ICLE’s formbank and for more information on the change to the statute, see Estate Planning Alert: The New Durable Power of Attorney Act.