Know the Protections Offered by Connecticut's Power of Attorney

After remaining relatively unchanged since 1965, Connecticut replaced its power of attorney (POA) statute in 2016 with more powerful laws and a comprehensive form to ensure your wishes are honored.

Known as the Connecticut Uniform Power of Attorney Act (UPPOA), this law was intended to make powers of attorney easier to use. Additionally, the UPOAA clarified and modernized Connecticut’s principal-agent laws and offered greater protection under the law from exploitation.

Interestingly, when the new law was first introduced, it was considered so significant that although the Connecticut legislature passed the law in 2015, it didn’t go into effect until October 1, 2016, in order to allow people time to adequately prepare.

Some of the pertinent POA changes and updates included:

1. Powers of attorney becoming automatically durable – meaning even if you become incapacitated, the POA remains valid.

2. A third party, such as a financial institution, having to honor a POA unless they believe that the POA was revoked, the agent has been removed, or the action the agent is attempting to take is outside the scope of authority granted by the POA.

3. The ability to appoint whomever you want to serve as your conservator within your POA.

4. Potential liability for agents who misuse or abuse their position. Some ways the UPOAA ensures this is by:

• Giving more people access to the probate courts to seek an accounting of the agent’s actions while acting under a POA;
• Giving courts the ability to order an agent who has misappropriated funds to repay the money, and to reimburse you for attorney’s fees, costs, and interest; and
• Granting the probate court with jurisdiction to determine the duties of and limitations on an agent and allowing an interested party to petition the probate court to determine:
  • whether you had capacity to execute the POA,
  • whether you were unduly influenced to execute the POA, or
  • determine whether the POA was executed with adequate formalities.

Essentially, the law requires that the agent must act in a certain manner unless the POA provided otherwise. Furthermore, the UPOAA created an opportunity for those who are close to you to go to court to protect you from misuse and exploitation and ensure that your agent is not abusing his or her power.

5. Inclusion of what are commonly referred to as “hot powers,” which are extremely powerful and useful powers that can be conferred upon your agent. As such, agents can make gifts, change beneficiary designations, and create or change rights of survivorship. These provisions, powerful as they are, must be exercised in a manner consistent with the agent’s authority granted in the POA.

6. The inclusion of an appointment of a successor on the POA form, which meant that a springing POA would no longer be needed (unless you didn’t want the POA to be effective right away.)

7. Legal remedies were made available if a third party rejects your POA without a reason listed on the statute.

So, does this mean that you should revise your existing POA?

Most likely you should consider doing so – especially if:

• You signed your POA prior to October 1, 2016. While the POA is still valid, you won’t have all the powers and protections provided under the 2016 law referenced above. Also, in general it is recommended that your POA be updated every five years.
• Your life circumstances or wishes have changed since your power of attorney was signed. If you no longer wish to have the person originally appointed as your agent, your agent is no longer capable of acting in that role or your agent has passed away, then it is probably time to have your POA reviewed and revised. (Remember that you should only assign someone as your POA if you trust them completely—it is a very powerful document!)

And, of course, if you don’t have a POA, now is the time to get one! We strongly recommend that anyone without a power of attorney should have one as part of their basic estate plan.

Raymond James is not affiliated with Czepiga Daly Pope & Perri