Upon review of the new financial power of attorney statutory language for both the short and long form, there are many good aspects with the new provisions.  There are enforcement provisions in this new law.  Before, a bank could refuse to honor your power of attorney and there would be virtually no way to force the bank to honor your power of attorney other than jump through their unique requirements.  The agent must keep a record of all receipts, disbursements and transactions.  There are other requirements as well.  The execution requirements will change.  While there is bound to be much confusion when this is enacted on October 1, 2010, overall, this was a good move by the Maryland General Assembly and this a positive development for our seniors.  There are more safeguards into its use.  There more defined routes to attack misuse.  There is language that can be used to make this enforceable.

If you would like to know the background of why the new power of attorney laws are called “Loretta’s Law” please follow this link:

http://www.hometownannapolis.com/news/top/2008/02/21-38/Making-it-harder-to-steal-from-family.html?ne=1

The Maryland General Assembly just passed and the governor signed into law sweeping new changes regarding Maryland financial powers of attorney (Maryland Uniform Power of Attorney Act – Loretta’s Law).  There are a whole host of changes including new execution requirements, new statutory language, enforcement provisions, financial agent disclosure and non-disclosure requirements, and agent record keeping responsibilities.  The new law goes into effect October 1, 2010.