On May 23, 2012, the Governor of Michigan signed a new law pertaining to Durable Powers of Attorney. The new law, Public Act 141 of 2012, lists new requirements for Durable Powers of Attorney, which become effective for all Durable Powers of Attorney signed after September 30, 2012.
A Durable Power of Attorney is a legal document that designates an agent who can act on your behalf for all of your financial transactions. Most of the time, Durable Powers of Attorney are effective only upon someone’s disability.
The new law requires that two witnesses sign the Durable Power of Attorney, or that it is notarized, or both. Further,the Durable Power of Attorney is now not effective unless the designated agent signs an acceptance of designation that sets forth all of their duties. This is the most significant change in the law.
While the law is only prospective and has no legal effect on Durable Powers of Attorney signed before October 1, 2012, it is highly probable that the banks will begin to refuse to honor any Durable Powers of Attorney that do not comply with the new requirements. It is a good idea to have an attorney look at your Durable Power of Attorney or revise it to comply with the new law, thus eliminating any potential problem in the future.