Nevada has become the latest state to adopt the Uniform Power of Attorney Act (UPOAA), which aims to prevent, detect, and redress power of attorney abuse. The AARP issued a report on POA abuse and recommended that states enact the UPOAA.
According to the AARP, Nevada's current POA statute is too vague, often causing Nevada banks to refuse to accept POAs. Nevada's new POA statute, which adopts consumer protections from the UPOAA, becomes effective October 1, 2009.
In 2006, the Uniform Law Commissioners approved the UPOAA to offer states a set of provisions that will help protect people who execute POAs and discourage POA abuse. Some key UPOAA provisions include:
- A clear statement of an agent's duties
- Stringent requirements for agents to exercise certain powers--i.e., powers that allow an agent to dissipate property or alter an estate plan
- Imposition of liability on malfeasant agents for damages, attorney's fees, and costs.
Colorado, Idaho, and New Mexico have also enacted the UPOAA and several other states are considering it.
To read the full text of Nevada's law, click here.
Subscribe to the Knowledge Bank.
