On October 1, 2011, Florida enacted a change in the laws regarding durable powers of attorney (DPOA). In a nutshell, prior to the change it was possible to prepare a DPOA which became effective only upon your incapacity. The new law no longer allows the "upon incapacity" language, thus making DPOAs effective immediately upon execution. Although the law was designed to allow those with DPOAs executed prior to that date to be "grandfathered" into the new law, unexpected controversy has developed. Unfortunately, as a result of the recent economic recession and the unusually high number of financial frauds that surfaced during these times, many banks and other financial institutions are demanding that DPOAs presented to them be in the new DPOA format thereby ignoring the law that allows the acceptance of DPOAs prepared prior to the effective date of the new law.
Why is this happening?
The new DPOA statute gives banks the authority and time to review DPOAs in order to determine acceptance according to the bank's own policies. Having the old DPOA can impose hardships on loved ones already incapacitated or incompetent, those relocating here from another state, or snowbirds having permanent residency in Florida.
Don't wait for a crisis only to find you are subjected to meeting the extraneous challenges by your bank or other financial institutions that may reject an existing DPOA prepared prior to October 1, 2011.
If you do not already have the new durable power of attorney you should consider having our office prepare a new one for you and your loved ones right away. Contact Jackson Law today! Our Orlando estate planning attorneys are ready to help!