by Senior Associate Dana Walsh Sivak
New York State recently passed legislation simplifying the Power of Attorney (POA) document and its execution. Every Power of Attorney executed on or after June 13, 2021 must comply with the new rules. The new laws leave health care facilities facing potential exposure when handling resident funds through the use of a POA.
Among the changes to the law governing New York’s Powers of Attorney are:
Health care facilities may be considered “institutions,” particularly when managing residents’ or patients’ funds (such as personal incidental allowance or “PIA” accounts), and are required to comply with these provisions, namely, indicating in writing, within 10 days of presentation of a POA for use at the facility that the facility is rejecting the POA and will be required to provide a valid reason for its rejection. It is also important to note that a facility cannot “frivolously reject” a Power of Attorney – or else it may cause the facility to incur steep penalties. If a facility has any doubt as to whether a Power of Attorney is valid, the facility should have it reviewed by its attorneys at Cona Elder Law immediately, so that you can ensure the POA complies fully with these laws and your facility is protected.
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