North Carolina has a new Power of Attorney Act that went into effect on January 1, 2018. Here are three questions and answers about the new act and your existing power of attorney.
1. Is my existing durable power of attorney still valid after January 1, 2018?
Yes, if your power of attorney was validly executed in North Carolina pursuant to the North Carolina law in effect prior to January 1, 2018, it is still valid.
2. Is my existing power of attorney sufficient?
There is no way to know this without asking an attorney to review the document. In addition to questions about the creation and execution of your older, existing, durable power of attorney, an attorney review of your power of attorney is critical because many older powers of attorney do not contain provisions for gifting, long-term care planning, the creation of revocable living trusts, or real estate transactions by your agent. These provisions can be vital in protecting assets as you age. Therefore, although your existing older power of attorney, if it was validly created and executed under the prior North Carolina law, is still valid, now that North Carolina has enacted a new Act, it is a good time to review your existing power of attorney and, if necessary, execute a new power of attorney that contains all the provisions your agent needs as you age and references and complies with the new law; thereby maximizing the chances it will be accepted by a financial institution when you need it most.
3. Should I update my existing North Carolina power of attorney?
Yes, it is a good idea to update your power of attorney for the following reasons. Your power of attorney is only useful when: 1) it is accepted by a financial institution for your agent’s use; and 2) it includes all the powers your agent needs to act on your behalf. The new North Carolina Power of Attorney Act provides specific rules for financial institutions. Because of the Act’s increased clarity and safe harbor provisions, financial institutions may be more willing to accept a power of attorney that was drafted and executed in compliance with the new Act. Updating your power of attorney to reference the new law may therefore improve the chances that it will be accepted by a financial institution when your agent needs it most.
Contact Nancy at 704-887-5242 to schedule a review of your existing power of attorney or to execute a new power of attorney.
DISCLAIMER: The contents of this post are for educational purposes only. The information offered in this post does not constitute legal advice and reading the information does not create an attorney client relationship with Nancy Roberts or the Law Office of Nancy L Roberts PLLC Firm. Before taking any action, you should always seek legal advice from an attorney you hire, who advises you based on your specific facts, circumstances, situation, and the appropriate governing law.