If you’ve created a Power of Attorney (POA) or are considering one, there’s a significant change in Michigan law that could impact your document. As of July 1, 2024, Michigan adopted the Uniform Power of Attorney Act (UPOAA), introducing greater accessibility, reliability, and consistency for POAs. This law ensures that POAs are more effective tools for managing financial decisions, safeguarding your assets, and supporting loved ones during critical times.
At Estate Planning Pros, we understand how essential it is to have a solid plan in place for your future. With the UPOAA’s new guidelines, it’s the perfect time to revisit your POA and confirm it aligns with these changes. If you’re unsure where to start, a power of attorney lawyer can provide guidance tailored to your needs.
Why The New Law Matters
A POA gives an appointed individual, called an “Agent,” the authority to act on your behalf, often in financial or legal matters. The UPOAA introduces measures to make POAs more widely accepted while protecting individuals from potential misuse.
One key improvement is the standardized acceptance of notarized POAs. Under the new law, third parties, like banks, are no longer allowed to reject a valid POA simply because it doesn’t meet their internal requirements. This change can save significant time and reduce frustration when someone needs to act on your behalf.
Additionally, the UPOAA imposes penalties for entities that refuse to honor a properly notarized POA. This provision ensures your appointed Agent can carry out their duties without unnecessary roadblocks.
For example, imagine appointing a trusted family member to manage your finances during a medical crisis. Without a clear, enforceable POA, they could face unnecessary challenges in accessing your accounts or signing critical documents. The UPOAA minimizes these hurdles, making it easier for your Agent to act when it matters most.
Protecting Your Wishes With Default Rules
The UPOAA also introduces helpful default rules for POAs. One notable update is the automatic durability of all POAs executed under the new guidelines. Durability means that your Agent’s authority continues even if you become incapacitated—a crucial feature that wasn’t always guaranteed under previous Michigan law.
These default rules also address issues like co-agents, successor agents, and the determination of incapacity. By clarifying these scenarios, the UPOAA reduces the risk of disputes or misunderstandings. However, it’s essential to review your existing POA to confirm it complies with the new standards. A power of attorney lawyer can help you evaluate your document and make any necessary updates.
Increased Accessibility And Peace Of Mind
Another significant change under the UPOAA is the introduction of a statutory form for POAs. This form makes it easier for individuals to create a legally valid POA without starting from scratch. However, while the form is helpful, it’s essential to approach it with care. A POA grants significant authority to your Agent, and any mistakes in drafting could have serious consequences.
For instance, during the pandemic, many people created legal documents without access to a notary. If your POA isn’t notarized, you may miss out on the additional protections provided under the UPOAA. Now is the perfect time to review your POA and re-execute it before a notary if needed.
Preparing For The Future
The UPOAA’s updates are a step forward in protecting individuals and their families. Whether you’re drafting a new POA or reviewing an existing one, these changes underscore the importance of proper planning. At Estate Planning Pros, we’re committed to helping you take control of your future.
If you’re unsure whether your POA complies with Michigan’s new law or you need help drafting a document that reflects your wishes, we encourage you to act now. Contact a power of attorney lawyer through our trusted directory to find the right professional for your needs. Taking this step today can give you and your loved ones peace of mind for years to come.