Ohio Estate Planning and Farm Attorneys

The State of Ohio adopted a statutory financial power of attorney form on March 29, 2006. This new form gives the named person, the attorney-in fact, authority to act as an agent for certain tasks on behalf of another person (the principal), except for health care decisions. The reason for the adoption of a new form was so financial institutions would accept the documents more quickly and easily.

The new state law specifies what certain categories of words mean. Now, a person, the principal, will be able to place his/her initials by categories such as the following:

• real property
• tangible personal property
• stocks and bonds

By doing so, the document will not have to define what an agent is allowed to do with respect to real property, stocks and bonds, etc. By initialing on the line before the category, a person will be giving the agent all authority with respect to that category as provided for in state law. Ohio law, for example, has approximately one page explaining the agent's powers with respect to real property, including the power to sell, exchange, convey, mortgage, subdivide, etc. When going through this form with your attorney, you will want to discuss the meaning under Ohio law of some of the powers being granted.

Easier to review

Less hassle and better timeliness will become reasons why the new forms are the best forms to use. For example, if you are named as the attorney-in-fact for a close friend, you might need to liquidate one of their stocks. The brokerage house where you submit the power of attorney document will likely have the document reviewed by their legal department to determine if you, as agent, have the authority to sell. If you have the statutory power of attorney that looks similar to all others and complies with state law, it will get reviewed and be approved much more quickly than if you have one where the department must review it line by line, looking for the specific authority.

It is possible that one could be under a time-sensitive issue with the principal's health and a long review of the power of attorney could cause undesired delay.

Even though the vast majority of organizations and entities will accept the new statutory form, there are still organizations for which the form will not work. For the organizations with specialized power of attorney forms, like the Farm Service Agency and the Bureau of Motor Vehicles, you will still need to use their individual forms.

If you are concerned that the new general power of attorney powers are broad, you must limit them if you do not wish for your agent to have as much power. In this case, an understanding of the statutory language will be required and the proper limitations will need to be inserted in the form. If you are naming someone and you wish to limit that person's power, you may want to consider giving them a special power of attorney for only one specific transaction. For example, if you are selling a parcel of land and cannot be at the closing, there are special powers of attorney that can be prepared giving the agent authority to act in that closing only. The new statutory form would not work for this limited power.

All current general powers of attorney are valid, but there is a possibility that the powers of attorney that look different from the new form will be reviewed more carefully.