Make the New Michigan Power of Attorney Part of Your Core Estate Plan
A core estate plan will protect your financial interests and family’s well-being, and includes four important documents. One important document that should be part of every core estate plan is a Durable Power of Attorney (DPA). A DPA allows you to designate a trusted person to handle your financial and property matters. It can become effective when you become incapacitated and unable to make decisions or become effective immediately when you sign the document and have it notarized. A POA is a necessary document for everyone to have, even if you have a spouse, because there are many times when a spouse will have no legal authority to act on behalf of a disabled spouse.
Uniform Power of Attorney Act
On July 1, 2024 Michigan adopted the new Uniform Power of Attorney Act (UPOAA) which brings important changes to the Durable Power of Attorney document. The new UPOAA ensures that banks, financial institutions as well as other third parties cannot reject a properly notarized POA. In addition, the UPOAA provides protection for third parties who in good faith rely on a valid POA and gives examples of circumstances where an acceptance of a POA should be denied. It also provides sanctions for refusing to accept a properly notarized POA which will help to eliminate the time and expense of having to prove the validity of the POA to third parties.
It should be noted that if you have signed a valid POA notarized prior to July 1, 2024, it remains valid, however the purpose of the new law is to standardize the POA and make it more effective and easier to use.
What Else Should My Core Estate Plan Include?
In addition to the new Durable Power of Attorney, a core estate plan should include the following documents:
Patient Advocate Designation which allows you to designate a trusted person to make medical decisions on your behalf if you are incapacitated by an accident or illness. The Patient Advocate Designation typically contains a general grant of authority to make health care decisions but can also include specific instructions about the type of care desired or not desired. For example, instructions can be included about life sustaining treatment if you are in a coma.
Will or Last Will and Testament allows you to determine who will receive your assets after death and who will be in charge of administrating your estate as a Personal Representative. Note that an estate that requires probate administration will usually include those assets that do not have beneficiary designations and real estate that is not held in a Trust or as an enhanced life estate deed, sometimes referred to as a “lady bird deed”.
Revocable Living Trust is more flexible than a Will and avoids probate administration if your assets, including real estate, are funded to the trust either when you are alive or after death. You should also consider a trust if you have minor children (or even young adults) and would like distributions from the trust assets to be distributed over time for specific purposes.
Talk About Your Core Estate Plan With an Experienced Estate Planning Attorney
If you are considering a Core Estate Plan, schedule a Free Consultation with Ann Arbor Estate Planning Attorney Bill Ager.
In my practice at Ager Law Office, I help individuals and families throughout Washtenaw County with all aspects of estate planning, including Wills, Trusts, Durable Powers of Attorneys, and Patient Advocate Designations. To talk with me about scheduling a free consultation for a new core estate plan or for updating your existing plan, call (734) 649-0784, send an email to bill@agerlawoffice.com, or use the online contact form on this website.