Mark Glendon

Benefits of Having a Statutory Gift Rider

When you're unable to manage your own legal or financial affairs, it pays to give an individual you trust the power to do so for you. Taking care of this small detail now can save you massive headaches later. Documents for Durable Power of Attorney New York City lets you decide in advance who this person will be. You can also choose how much control the agent has over your care or assets.

While having power of attorney is crucial, there's another document that expands their capabilities. It's called the Statutory Gift Rider (SGR).

What is the Statutory Gift Rider?

This separate document ties into the initial Durable Power of Attorney. But, it focuses on gifting power.

In 2010, New York established a new law that separates gifting power. Before that, the only requirement to grant gifting power was to check off a box when filing Durable Power of Attorney New York City documents. But the new law changed all that. The Statutory Gift Rider became a requirement to prevent agents from misusing their powers.

The definition of "gifting" is broader than most realize. It's not just small handouts. It also includes transferring assets and moving the name from the principal to someone else.

The Statutory Gift Rider is about transparency and clarity. Without the SGR, agents with Durable Power of Attorney can only give gifts totaling $500 for personal use or family maintenance. With the SGR, there is no limit.

Why Have a Statutory Gift Rider?

Ultimately, the reason to have a Statutory Gift Rider is to ensure that the agent you grant Durable Power of Attorney has more flexibility and control over your assets. They can make significant decisions on your behalf and handle pressing financial matters.

Without that SGR, an agent's capabilities are limited. This document expands on what they can do with your assets. As long as you trust that individual and provide clear instructions, it's a great way to cover your bases.

Help from a Professional

It's never too early to start estate planning. Seek help from an experienced attorney. Estate planning is complex, and these documents are just the beginning. A good attorney will guide you in the right direction and help you make confident decisions.

Author Resource:-

Mark writes often about estate planning. His articles may include topics like real estate closing attorney and business succession laws to help the people in needs. You can find his thoughts at real estate law blog.