What must be done for gifts beyond $500 in a statutory short-form power of attorney to be valid?

• A. Initial a statement in the statutory short-form POA and execute a separate Statutory Gifts Rider
• B. Obtain court approval for the gifts
• C. Have the principal's signature notarized only
• D. No additional action is required beyond the standard POA form

Answer: (A)

In New York, gifts by someone acting under a statutory short-form power of attorney are allowed only if there is explicit, separate authorization beyond the standard form. For gifts exceeding the $500 threshold, the principal must clearly consent by initialing a statement in the POA and by executing a separate Statutory Gifts Rider. This rider specifies the gifts the agent may make and is attached to the POA. The combination of the principal’s initials in the POA and the signed, attached gifts rider provides the necessary consent for the agent to proceed with gifts above $500. Without this rider and the initial acknowledgment, gifts beyond the limit aren’t valid. Court approval isn’t required, notarization of the principal alone isn’t enough, and no extra action isn’t correct.