♠ Posted by Marc J. Soss in Connecticut Estate Planning,Connecticut Power of Attoney,elder abuse,estate plan,estate planning,Sarasota attorney,Sarasota Tax Attorney at Friday, June 24, 2016
Effective October 1, 2016, the new Connecticut law governing “Powers of Attorney” (written designations of authority) will go into effect (a major update to the 1965 law. The new law, known as the Connecticut Uniform Power of Attorney Act imposes new obligations on banks to whom POA’s are presented by requiring them to either accept a notarized POA or request additional documentation within seven (7) business days. Once the documentation is presented, if the bank requests it from the agent, it will have five (5) days to either accept the POA or reject it (based upon suspected abuse or the bank’s knowledge that the POA has been revoked). In those cases, the bank continues to be free to refuse to accept the POA, without sanction or liability. Alternatively, if the bank refuses to accept the POA without sufficient cause, the attorney-in-fact can obtain a court order mandating acceptance of the POA and potentially recover reasonable attorney’s fees and costs from the bank.
The new law also provides that (i)
the commencement of a divorce or separation proceeding will automatically
revoke the POA designation of a spouse; (ii) the POA remains effective during
incapacity without any additional language; (iii) existing POA’s remain valid;
and (iv) the new law’s presumptions, such as revocation of a former spouse’s
designation as attorney-in-fact and durability, will apply to prior POA’s. In
addition, the new law creates a second, long statutory form that includes estate
planning powers, allowing gift giving and other powers.
