Your Durable Power of Attorney May Not Be Valid for Long
On May 23, 2012, the Governor of Michigan signed a new law pertaining to Durable Power of Attorney agreements. The new law, Public Act 141 of 2012, lists new requirements and will go into effect for all agreements signed after September 30, 2012.
A DPOA is a legal document that designates an agent who can act on your behalf for all of your financial transactions. Most of the time, this document is only effective upon someone’s disability.
The new law requires that two witnesses sign the document, that it is notarized, or both. Further, the agreement is 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 DPOAs signed before October 1, 2012, it is highly probable that the banks will begin to refuse to honor any Durable Power of Attorney that does 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 on the Michigan Legislature website. If you are interested in learning more about durable of attorney, estate planning, probate, family law or divorce, or have a question about these issues, please call Fausone Bohn, LLP at (248) 380-0000.