New York rewrote its statutory short form power of attorney in a reform that took effect on June 13, 2021. Below we go through the changes to signing, wording, gifting and bank acceptance, quoting the General Obligations Law (GOL), Article 5, Title 15.
When did the New York power of attorney reform take effect?
The reform took effect on June 13, 2021. The law was Assembly Bill A5630-A (Senate companion S3923-A), signed by the Governor on December 15, 2020 as Chapter 323 of the Laws of 2020.
The bill's effective-date clause set the start date at "the one hundred eightieth day after it shall have become a law," which lands on June 13, 2021.
Forms signed under the old law did not become void. GOL § 5-1501B(5)(a) provides that a statutory short form power of attorney and any statutory gift rider executed "in the manner conforming with the law in effect at the time" remain valid and enforceable, even if an agent signs on or after June 13, 2021.
How must a New York statutory power of attorney be signed now?
The principal must sign before a notary and two witnesses. Under GOL § 5-1501B(1)(b), the principal's signature must be acknowledged in the manner used for a deed and witnessed by two persons who are not named in the document as agents or as permissible recipients of gifts.
Before the reform, the sponsor's memo for S3923 explains, the power of attorney itself needed only a notarized signature, while the separate Statutory Gifts Rider had to be both acknowledged and witnessed by two witnesses. Now the witness requirement applies to the power of attorney itself, signed in the manner described in EPTL § 3-2.1(a)(2), in the presence of the principal.
The notary can double as a witness. The statute says: "The person who takes the acknowledgement under this paragraph may also serve as one of the witnesses."
Other execution rules in § 5-1501B(1):
- Type size: the document must be typed or printed in clear type "no less than twelve point in size, or, if in writing, a reasonable equivalent thereof."
- Initials and date: the principal must sign, initial and date the form.
- Signing for the principal: another person may sign in the principal's name, in the principal's presence and at the principal's direction, but that person cannot be the agent or a successor agent. The signer writes or prints the principal's name and prints and signs his or her own name.
- Agent's signature: each agent must sign and date the form, with the agent's signature acknowledged before a notary.
The power of attorney becomes effective as to each agent on the date that agent's signature is acknowledged. If two or more agents must act together, it takes effect only when all of them have signed with acknowledged signatures, under § 5-1501B(3)(a).
What does it mean that a New York power of attorney "substantially conforms"?
A power of attorney no longer has to match the statutory form word for word. The 2021 reform rewrote the definition in GOL § 5-1501(2)(n) so that a form "substantially conforms" to § 5-1513 despite minor errors.
"A given power of attorney substantially conforms to the form required pursuant to section 5-1513 of this title notwithstanding that the form contains (i) an insignificant mistake in wording, spelling, punctuation or formatting, or the use of bold or italic type; or (ii) uses language that is essentially the same as, but is not identical to, the statutory form, including utilizing language from a previous statute."
— New York General Obligations Law § 5-1501(2)(n)The same definition adds that substantial conformity "shall not depend on the presence or absence of a particular clause", and any section marked "Optional" that is not used may be replaced with the words "Intentionally Omitted".
Two notices still matter. Under § 5-1501B(1)(d), the document must substantially conform to the "Caution to the Principal" and the "Important Information for the Agent", and § 5-1501B(2) states that an insubstantial variation in their wording does not disqualify the form.
What happened to the Statutory Gifts Rider?
The Statutory Gifts Rider was abolished. Section 18 of the 2020 bill states: "Section 5-1514 of the general obligations law is REPEALED." The current table of contents for GOL Article 5, Title 15 ends at § 5-1513.
Gifting authority now goes into the Modifications section of the power of attorney itself. Paragraph (g) of the statutory form, "CERTAIN GIFT TRANSACTIONS", says that to authorize gifts above an annual total of $5,000 (the figure in the statute as of October 2026), or changes to interests in your property, "you must expressly grant that authorization in the Modifications section below."
Gifts to the agent require the same express grant in the Modifications section, under the same paragraph (g).
Without that language, gifting is limited. Under GOL § 5-1502I(14), the "personal and family maintenance" power lets the agent continue gifts the principal customarily made to individuals and charities, provided that in any one calendar year "all such gifts shall not exceed five thousand dollars in the aggregate".
This matters most for Medicaid planning; see our article on the Medicaid five-year lookback in New York.
What can you add in the Modifications section?
The Modifications section can narrow, expand or add to the agent's authority without turning the document into a non-statutory power of attorney. GOL § 5-1503 lists three categories of permitted additional language:
- Language that eliminates one or more of the powers in the constructional sections (§§ 5-1502A through 5-1502N) for a subject the principal chose.
- Language that supplements those powers "by specifically listing additional powers of the agent".
- Any additional provision "which is not inconsistent with the other provisions of the statutory short form power of attorney, including a provision revoking one or more powers of attorney previously executed by the principal."
Agent compensation is also handled there. Under paragraph (j) of the form, the agent is reimbursed for reasonable expenses; payment for services must be added under Modifications.
Prior powers of attorney survive unless you say otherwise. Paragraph (e) of the form provides that the document "DOES NOT REVOKE any Powers of Attorney previously executed by me unless I have stated otherwise below, under 'Modifications.'"
Is a New York power of attorney durable by default?
Yes. A New York power of attorney stays in force if the principal loses capacity, unless the document itself says otherwise.
"A power of attorney is durable unless it expressly provides that it is terminated by the incapacity of the principal."
— New York General Obligations Law § 5-1501A(1)The statutory form repeats the rule in paragraph (d): the power of attorney "shall not be affected by my subsequent incapacity unless I have stated otherwise below, under 'Modifications'." If a guardian is later appointed, § 5-1501A(2) requires the agent to account to the guardian rather than to the principal.
Durability also means an agent's misuse can go unchecked; see how to protect an inheritance from an abusive power of attorney.
Can a bank refuse to accept a New York power of attorney?
A bank can refuse only with reasonable cause. GOL § 5-1504(2) states that no third party located or doing business in New York "shall refuse, without reasonable cause, to honor a statutory short form power of attorney properly executed" under § 5-1501B or under the law in effect when it was signed.
Statutory examples of reasonable cause include actual knowledge of the principal's death, a good-faith referral to adult protective services, and a reasonable basis to believe the document was procured through fraud, duress or undue influence.
Some reasons are deemed unreasonable when they are the only reason for refusal. Under § 5-1504(2)(b), a third party may not refuse solely because the document "is not on a form prescribed by the third party", because time has passed since it was signed, or because of a gap between the principal's and the agent's acknowledgment dates.
What is the deadline for a bank to respond?
The bank has ten business days. Under § 5-1504(3)(a), "[n]ot later than the tenth business day after presentation" of an original or attorney-certified copy, the third party must do one of three things:
- honor the power of attorney;
- reject it in a writing that states the reasons, sent to the principal and the agent; or
- ask the agent to sign an acknowledged affidavit that the power of attorney is in full force and effect, if one was not already submitted.
After a written rejection, the clock restarts at seven business days. If the agent responds in writing, the third party must honor the document or finally reject it in writing "within seven business days after receipt of a writing in response to the reasons for such rejection". If the bank requested an affidavit, it must honor the document within seven business days after receiving a compliant one, unless reasonable cause exists.
These time limits do not apply to the department of audit and control, a state public retirement system, or the department of health, including social services districts, in administering Medicaid.
The bank may also ask for an opinion of counsel on a legal question about the document. Under § 5-1504(1)(e), that opinion is "provided at the principal's expense unless the request is made more than ten business days after the power of attorney is presented for acceptance."
What happens if the bank still refuses?
The agent can bring a special proceeding under GOL § 5-1510 to compel acceptance, and the court can award damages and attorney's fees.
"If a special proceeding as authorized by section 5-1510 of this title is brought to compel the third party to honor the statutory short form power of attorney, the court may award damages, including reasonable attorney's fees and costs, if the court finds that the third party acted unreasonably in refusing to honor the agent's authority under the statutory short form power of attorney. Such special proceeding shall be the exclusive remedy for a violation of this section."
— New York General Obligations Law § 5-1504(4)(b)A third party that reasonably accepts a properly executed form is protected. Section 5-1504(4)(a) provides that it "shall be held harmless from liability for the transaction."
Should I sign a new power of attorney after the 2021 changes?
Not necessarily: a pre-reform form signed correctly under the old law remains valid under § 5-1501B(5)(a). We recommend a review when:
- You want to change gifting terms that sat in an old Statutory Gifts Rider.
- You want the agent to gift above the $5,000 annual total stated in the statute as of October 2026.
- An agent named in the old form can no longer serve.
- You plan to use the document for a real estate transaction. Under § 5-1501(2)(m), an instrument recordable under the real property law "shall not be executed with an electronic signature."
For how a power of attorney fits a broader plan, see elder law and Medicaid asset protection in New York.
If you want us to review an existing power of attorney or prepare a new one under the current GOL § 5-1513 form, schedule a free consultation with Alan Vaitzman, Esq. at our office on the 17th Floor, 299 Broadway, New York, NY 10007, through our contact page.
Frequently Asked Questions
Does a New York power of attorney need witnesses?
Yes. Since June 13, 2021, GOL § 5-1501B(1)(b) requires the principal's signature to be notarized and witnessed by two people who are not named as agents or permissible gift recipients. The notary may serve as one of the two witnesses.
Is my New York power of attorney signed before 2021 still valid?
Yes, if it was executed in conformity with the law in effect when it was signed. GOL § 5-1501B(5)(a) keeps pre-reform statutory short forms and statutory gift riders valid and enforceable, even if an agent signs after June 13, 2021.
Does New York still use the Statutory Gifts Rider?
No. The 2020 legislation repealed GOL § 5-1514, which contained the rider. Gifting authority beyond the $5,000 annual total stated in the statute as of October 2026, and any gifts to the agent, must now be granted expressly in the Modifications section of the power of attorney.
How long does a bank have to accept a power of attorney in New York?
Under GOL § 5-1504(3)(a), the bank must honor the power of attorney, reject it in writing with reasons, or request an agent's affidavit no later than the tenth business day after presentation. After a written rejection and a response, or after receiving the affidavit, it generally has seven business days to act.
Can a bank make me use its own power of attorney form?
Not as the only reason for refusal. GOL § 5-1504(2)(b) deems it unreasonable for a third party to refuse a properly executed statutory short form solely because it is not on the third party's own form.
Does a New York power of attorney end if I lose capacity?
No. Under GOL § 5-1501A(1), a power of attorney is durable unless it expressly provides that it terminates on the principal's incapacity.
Does a power of attorney have to use the exact statutory wording?
No. Under GOL § 5-1501(2)(n), it must substantially conform to the § 5-1513 form, and insignificant mistakes in wording, spelling, punctuation or formatting do not defeat it.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. No attorney-client relationship is formed by reading this publication. Prior results do not guarantee a similar outcome. Reviewed by Alan Vaitzman, Esq. — Managing Attorney at Estate Law New York. Working in estate law since 2017. J.D., New York Law School (2021); B.A. in Psychology, Brooklyn College (2016). Admitted to practice in New York (Reg. No. 5989199), New Jersey, and Florida (Bar No. 1040681). Office: 299 Broadway, 17th Floor, New York, NY 10007.