Page 9 - John Hundley 2011

Sharp Thinking

No. 45 Perspectives on Developments in the Law from The Sharp Law Firm, P.C. April 2011

Changes to Statutory Powers of Attorney

for Property To Be Required by July 1

By John T. Hundley, Jhundley@lotsharp.com, 618-242-0246
Second of 3 Issues
Substantial changes to short-form statutory powers of Effective July 1, P.A. 96-1195 makes
attorney for property and financial affairs will be required sweeping changes to the law governing
effective July 1. powers of attorney for both health care
and for property and financial affairs.
As pointed out in Sharp Thinking No. 44, the changes were This issue discusses changes in
enacted by P.A. 96-1195, approved last year with a delayed powers of attorney for property and
effective date so that persons involved with such powers could financial affairs. A third issue of Sharp
Thinking, to be issued shortly, will
prepare the necessary new forms and make other adjustments. address the changes applicable to
health-care powers.
Perhaps most significant, the amended statute abandons
the prior approach of requiring that the statute be reproduced in full on the back, in favor of more-
comprehensible notice provisions in the statutory power form itself. These notice provisions
include notices to both the principal and to the agent, the latter particularly appropriate in light
of the significantly increased duties and potential penalties which the new law imposes upon
agents (see Sharp Thinking No. 44). Indeed, the notice to the agent reads like a Miranda warning.

Moreover, gone from the statutory form are the lengthy provisions defining all the powers
which are included in the statutory form’s short references of the 15 kinds of powers which
may be delegated to the agent (subparagraphs (a)-(o) of paragraph 1 of the form). The short
references remain, but the revised form now simply says it incorporates the statutory detail by
reference.

In addition, the new law limits who may serve as witnesses for such powers. Disqualified are:

► attending physicians and mental health service providers of the principal,
and relatives of such physicians and mental health service providers;

► owners, operators, and relatives of owners and operators of any health
care facility where the principal is a patient or resident;

► parents, siblings and descendants, and spouses of parents, siblings and
descendants, of the principal;

► parents, siblings and descendants, and spouses of parents, siblings and

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Sharp Thinking is an occasional newsletter of The Sharp Law Firm, P.C. addressing developments in the law which may be of interest. Nothing contained in Sharp
Thinking shall be construed to create an attorney-client relation where none previously has existed, nor with respect to any particular matter. The perspectives herein
constitute educational material on general legal topics and are not legal advice applicable to any particular situation. To establish an attorney-client relation or to obtain legal
advice on your particular situation, contact a Sharp lawyer at the phone number or one of the addresses provided on page 2 of this newsletter.