Michigan’s New Power of Attorney Law Is Now in Effect: What You Need to Know

As of July 1, 2024, Michigan’s Uniform Power of Attorney Act (UPOAA) is officially in place, bringing clearer guidelines to how powers of attorney work. Whether you already have one or need to create one, this is an important time to review your estate plan.

What’s Changed?

• Powers of Attorney Are Now Automatically Durable – A power of attorney remains valid if you become incapacitated, as long as it is notarized or signed by two witnesses.
• Clearer Agent Authority – Agents cannot modify trusts, give gifts, or change beneficiaries unless expressly allowed.
• Stronger Oversight – Agents who misuse authority may face financial penalties, including repayment and, in some cases, triple damages.
• Legal Protections for Responsible Agents – Those acting in good faith won’t be penalized simply for benefiting from decisions made in the principal’s best interest.

Why These Updates Matter

A power of attorney is one of the most important legal tools in an estate plan. It ensures someone you trust can step in to handle financial or legal matters if you’re unable to do so. Without it, your family could face court delays and unnecessary expenses to gain authority over your affairs.

This change also brings Michigan in line with other states, making it easier for individuals who relocate or manage assets across state lines. The added clarity in agent responsibilities helps reduce the risk of disputes and financial mismanagement.

Does This Affect Your Estate Plan?

If your power of attorney was created under Michigan’s old law, it remains valid, but this is a good time to confirm that it still reflects your wishes. If you don’t have one, putting one in place now ensures your affairs are handled without court delays.

A well-prepared power of attorney can prevent unnecessary complications for your loved ones and give you peace of mind. With Michigan’s updated laws, having the right documents in place has never been more important.

At Bassett Murray Law Group, we can help you review or update your estate plan.

Contact us today for personalized guidance by calling 734-930-9200 or 231-427-2292, you can also visit us online.