July 1st saw a quiet, but sweeping change in Massachusetts law.  It was the day the Uniform Probate Code began to take effect.  I say “began” because July 1st marked the first phase of implementation.  Phase two takes effect in 2011.

The Durable Power of Attorney statute used by so many for so long to make it possible for loved ones or friends to handle financial decisions in the event of disability was repealed.  While the biggest impact this year is on guardianship and conservatorship proceedings, this one tiny piece of the puzzle is having really big implications.

Usually when laws change they are amended.  This has the effect of “grandfathering” prior written documents that reference the specific statute.  For example, if you say, “I incorporate the powers listed in Chapter 201B” you’re covered no matter how many times that chapter is amended.  It’s still Chapter 201B.  In this instance though, rather than amend the statute it was repealed and replaced with something with a completely different reference.  Essentially, Chapter 201B no longer exists.  So, if your Durable Power of Attorney references it, well, put bluntly, it’s probably now useless.

The new Durable Power of Attorney statute is located at Chapter 190B, Section 5-501 through 5-507.  Despite this change possibly invalidating a lot of existing Durable Powers of Attorney documents, it does do some really good things.  The most important is that it prohibits people and businesses from refusing to honor them unless they have a darn good reason. It has always been good customer service for banks and financial institutions to honor Durable Powers of Attorney.  That doesn’t mean that they always did though.  Some institutions that will remain nameless had internal policies of not honoring them—EVER!