THE MICHIGAN UNIFORM POWER OF ATTORNEY ACT
Effective on July 1, 2024
On July 1, 2024, the new Michigan Uniform Power of Attorney Act (UPOAA) will come into effect, repealing and replacing the durable power of attorney provisions in the current Estate and Protected Individuals Code (EPIC). This change sees Michigan joining 30 states and the District of Columbia in adopting some variant of the UPOAA.
WHAT IS A DURABLE POWER OF ATTORNEY?
A power of attorney is a document whereby a principal grants to an agent specified powers to deal with the principal’s property. This is sometimes more specifically called a power of attorney for property, as distinguished from a patient advocate designation (aka a power of attorney for heath care decisions).
Under current Michigan law there is a distinction between a regular or non-durable power of attorney and a durable power of attorney. Under a regular or non-durable power of attorney, when the principal becomes incapacitated (whether physically or mentally), the powers of attorney automatically cease to be effective.
Only where the power of attorney is a durable power of attorney do the powers granted to the agent continue to be effective after the principal’s incapacity. Currently, the document itself must specify it is a durable power of attorney for the agent’s power to continue.