The Washington State Legislature passed Senate Bill 5635, which repeals the Washington State Power of Attorney Act and replaces it with a slightly modified Uniform Power of Attorney Act.

The Act is effective January 1, 2017.

Credit unions should:

• Review the new allowances and requirements for POAs created after January 1, 2017
• Plan on using the new Certification form beginning January 1, 2017

Highlights of the WA UPOAA include:

The credit union must allow the POA to be used within five business days after receiving the POA and Certification.  This allows time for the credit union to review and determine the allowances of the POA.  The Certification form is located on our Resources page.  The password for the form is NWCG2012.

POAs executed before the effective date will still be valid if they follow the current Washington State Power of Attorney Act.

POAs are not to be considered durable unless specific language within the POA provides that it survives the incapacity of the principal.

If the POA grants an agent the authority to do all acts that a principle could do, unless otherwise instructed in the POA, the principal authorizes the agent to (with regard to banking – Section 207):

• Continue, modify, and terminate an account or other banking arrangement made by or on behalf of the principal;
• Establish, modify, and terminate an account or other banking arrangement with a bank, trust company, savings and loan association, credit union, thrift company, brokerage firm, or other financial institution selected by the agent;
• Contract for services available from a financial institution, including renting a safe deposit box or space in a vault;
• Withdraw, by check, order, electronic funds transfer, or otherwise, money or property of the principal deposited with or left in the custody of a financial institution;
• Receive statements of account, vouchers, notices, and similar documents from a financial institution and act with respect to them;
• Enter a safe deposit box or vault and withdraw or add to the contents;
• Borrow money and pledge as security personal property of the principal necessary to borrow money or pay, renew, or extend the time of payment of a debt of the principal or a debt guaranteed by the principal;
• Make, assign, draw, endorse, discount, guarantee, and negotiate promissory notes, checks, drafts, and other negotiable or nonnegotiable paper of the principal or payable to the principal or the principal’s order, transfer money, receive the cash or other proceeds of those transactions, and accept a draft drawn by a person upon the principal and pay it when due;
• Receive for the principal and act upon a sight draft, warehouse receipt, or other document of title whether tangible or electronic, or other negotiable or nonnegotiable instrument;
• Apply for, receive, and use letters of credit, credit and debit cards, electronic transaction authorizations, and traveler’s checks from a financial institution and give an indemnity or other agreement in connection with letters of credit; and
• Consent to an extension of the time of payment with respect to commercial paper or a financial transaction with a financial institution.
• And for retirement plans (Including IRAs – Section 214):
  • Select the form and timing of payments under a retirement plan and withdraw benefits from a plan;
  • Make a rollover, including a direct trustee-to-trustee rollover, of benefits from one retirement plan to another;
  • Establish a retirement plan in the principal’s name;
  • Make contributions to a retirement plan;
  • Exercise investment powers available under a retirement plan; and
  • Borrow from, sell assets to, or purchase assets from a retirement plan.

The following powers must be specified in the POA in order for the agent to act upon them (Section 201):

• Create, amend, revoke, or terminate an inter vivos trust;
• Make a gift;
• Create or change rights of survivorship;
• Create or change a beneficiary designation;
• Delegate some but not all of the authority granted under the power of attorney, except as otherwise provided in section 111(1) of this act;
• Waive the principal’s right to be a beneficiary of a joint and survivor annuity, including a survivor benefit under a retirement plan;
• Exercise fiduciary powers that the principal has authority to delegate;
• Exercise any power of appointment in favor of anyone other than the principal;
• Create, amend, or revoke a community property agreement;
• Cause a trustee to make distributions of property held in trust under the same conditions that the principal could;
• Make any other provisions for nonprobate transfer at death contained in nontestamentary instruments described in RCW 11.02.091;
• Make health care decisions for the principal, or give informed consent to health care decisions on the principal’s behalf.

These are just a small section of the 60 pages that encompass the new Act.  Text of Washington’s Uniform Power of Attorney Act can be found here.