Legislative Changes: Durable Power of Attorney

Estate planning clients are strongly encouraged to review their planning documents at least every five years or so, or as major life changes occur (think divorce, death, kids aging up to majority, etc.).  In addition, every few years the Texas legislature sees fit to make changes to planning documents.  This year, legislative changes will impact both the Statutory Durable Power of Attorney (“DPOA”) and Healthcare Power of Attorney (“HCPOA”).  These are the changes to the DPOA, which will become effective as of September 1, 2017.

  1. Though stopping short of mandatory acceptance by third parties, institutions have certain, specific limitations on their reasons for not accepting a DPOA presented. The rejection must be provided in writing.
  2. The form of the DPOA has changed.
  3. The DPOA allows the principal to let the agent name successor agents.
  4. Changes allow the principal to provide compensation to the agent.
  5. The DPOA now imposes a duty upon the agent to preserve the principal’s estate plan.
  6. The new DPOA itemizes so-called “hot powers,” that is the principal may opt to give powers to create, amend, or revoke a trust, make gifts, create or change beneficiary designations.

The lawyers at Wyatt & Mirabella, PC are happy to help you review your current documents to see what changes might  be necessary to update or tailor your plan to meet your needs.

This article is written by an attorney at Wyatt & Mirabella, PC. Always consult an attorney before making any legal decisions. To make an appointment today for a free consultation, please click here to contact us.

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