Question for the Money Doctors
Question submitted on Jan 6, 2014.
Questionwhat is the difference between a Durable Unlimited Power of Attorney and a Power of Attorney=NYS Statutory short form.
The quick answer is that the NY Statutory Form provides easy implementation of the individual's wishes in a time of need. Further streamlining access to accounts in a time of need are the completion of a bank's POA (Power of Attorney).
Most states have adopted the uniform power of attorney act (states typically modify these uniform acts in one way or another, but that are all pretty much the same, generally).
As part of these acts, the statutes themselves have SUGGESTED forms for a power of attorney. By giving a SUGGESTED form, other forms (like those drafted by a private attorney) are NOT forbidden and are still valid and permitted.
That said there is a practical consideration. Though other forms of power of attorney are still valid and legal, an institution need not accept those forms if they don't want to unless it is accompanied by a court order. So, as a practical matter of experience, Some practicing attorneys use the statutory forms because in a time of need the attorney does not want to be fighting about the legality of a form and have to run of court. That takes time and money. Further, it prevents the form itself from being useful in a practical sense.
Therefore, Attorneys may use either, the statutory form or, if The attorney is thinking ahead and/or knows a particular institution is difficult to deal with, The attorney will get that institution's internally published POA and use that.
For instance, If there was a guy in a foreign country who is trying to give power of attorney for his US Bank account to his son, Instead of using a statutory power of attorney for a particular state, The attorney can call the Bank and get their internal form.
That way, removed are all issues about whether The bank will accept what the client is going to give.
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