![]() ![]() Under the new law, durable and non-durable powers of attorney must be signed by the principal in the presence of two witnesses and acknowledged before a notary.Ĩ. those that terminate upon a person’s incapacity-did not require such formalities unless being used to convey real property. All new powers of attorney will require two witnesses and a notary. Under the prior law, only durable powers of attorney had to be signed before two witnesses and a notary. However, as noted above, “springing” powers of attorney signed before Octoremain valid and can be deployed after Octoif the principal becomes incapacitated.ħ. Under the new law, the latter, so-called “springing” power of attorney is no longer available. All new powers of attorney will be immediately effective. Under the prior law, powers of attorney came in two varieties: one that took immediate effect, and one that did not become effective until the principal became incapacitated. Compensation may be paid to the principal’s spouse and “heirs” financial institutions with Florida trust powers Florida attorneys and certified public accountants and natural persons who are Florida residents and have never been an agent for more than three principals at the same time.Ħ. ![]() However, the new law limits who may receive compensation for their services. ![]() The new law continues to allow all agents to be reimbursed for expenses reasonably incurred on behalf of the principal. If a document grants the agent authority to conduct “banking” or “investment” transactions, the new law lists certain banking or investment functions that an agent may perform without specific enumeration in the document.ĥ. The new law allows an agent to perform only those acts expressly granted in the document. Powers granted under the document must be specific. Under the new law, broad grants of authority, allowing an agent “to do everything the grantor could do,” are invalid. Third parties who violate this new law will be subject to a court order mandating acceptance and liability for damages (including attorney’s fees and costs) incurred in compelling acceptance of a valid power of attorney.Ĥ. in-house form-for acts authorized under the power of attorney presented. Third parties may require an agent to sign an affidavit reciting that to the best of the agent’s knowledge, the principal is not deceased and the power of attorney remains in full force and effect however, third parties may not require an additional-i.e. For other third parties, reasonableness will depend on the circumstances and the terms of the power of attorney. For financial institutions, four business days is presumed to be a reasonable time. Third parties who refuse to honor a power of attorney must give a written explanation. Third parties must accept or reject a power of attorney within a reasonable time. two witnesses and a notarized acknowledgement-even if not required in the state of execution.ģ. Note: if a power of attorney is used to convey real property, it must be executed in the same manner as a deed-i.e. Military powers of attorney also remain valid in Florida if executed in accordance with relevant federal law. A third party who is called upon to accept an out-of-state power of attorney may request an opinion of counsel concerning the power’s validity, at the principal’s expense. Valid, out-of-state powers of attorney are acceptable in Florida. If an out-of-state power of attorney and its execution were valid in another state, it is also valid in Florida. Further, “springing” powers of attorney (discussed further in paragraph 6) signed before October 1, 2011, may still be deployed if the principal becomes incapacitated after October 1, 2011.Ģ. Although Florida’s legislature completely re-wrote the power of attorney statute, the new law does not affect powers of attorney validly executed before October 1, 2011. Your existing power of attorney is still valid. This newsletter highlights some of the most critical features of the new law.ġ. Florida law gives the option to create a “durable” power of attorney, which remains effective even if the principal becomes incapacitated-reducing the potential need for a court-appointed guardian. As an introduction, a power of attorney is a document in which a person (the “principal”) designates another person to act on the principal’s behalf (the “agent”). The new law, which has an effective date of October 1, 2011, imposes many new requirements on this important estate planning tool. Forrest practices in the areas of wills, estate planning, probate and trust administration.Įarlier this year, Florida’s legislature passed an overhaul of Florida’s power of attorney law. ![]()
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