Do you have a Power of Attorney (POA)? Do you need one? Recent updates to the Maryland Statutory POA make the process more streamlined and enhance the estate planning toolkit for our clients. Below, our attorneys provide insight into what the POA changes could mean for you.
A new version of the Maryland Statutory Power of Attorney (“POA”), featuring distinct improvements, went into effect on October 1, 2023. The new POA does not invalidate any previously executed Powers of Attorney. The new POA is notable for its comprehensive scope and the inclusion of numerous powers that previously required separate supplemental documents, simplifying the estate planning process.
By having a Maryland Statutory POA, if your POA is rejected by a financial institution, and your agent has to take legal action to enforce it, the financial institution may have to pay the cost of enforcement, including attorney’s fees. This makes banks less likely to reject a POA, resulting in a smoother process for your agent and enhanced protection of your affairs.
Do I Need a Maryland Statutory POA?
The value of having a POA is that this document serves as a legally binding record of your wishes and allows you to protect your loved ones, your legacy, and ensure that your wishes are recognized and followed, in the event that you become incapable of making decisions about your finances, health, or person. POA’s may help you avoid potential guardianship, disability planning, and estate planning issues.
The Maryland Statutory POA is an ever-evolving document, so we recommend checking in with your attorney every 3-5 years to discuss updating your documents.
If you would like to discuss updates to your estate plan or have questions about how the new Maryland Statutory POA may impact your estate plan, please contact an attorney in our Estate Planning Practice Group.
