The Statutory Gift Rider is a document that goes hand-in-hand with New York State’s Durable Power of Attorney that was revised in 2009.  Prior to that, a broad gifting provision could have been placed in the body of the Power of Attorney, allowing the agent the ability to gift all of the Principal’s (person creating the Power of Attorney) assets to him/herself.  This gifting provision could have been overlooked by the Principal when signing the document, and therefore, not realized that he/she gave someone that gifting power.

To remedy that issue, the New York State legislature decided to revise the Durable Power of Attorney statute, by incorporating the following execution requirements and terms within the Power of Attorney itself:

  1. Only allowing your agent to gift a total of $500 per year, unless the Principal signs the Statutory Gift Rider that details the permissible amount that the agent can gift above $500 per year and to whom those gifts can be made.
  2. Insuring that the Principal knows that he/she is signing the Statutory Gift Rider by requiring the Principal to initial a section in the body of the Power of Attorney indicating that the Principal will be signing the Statutory Gift Rider.
  3. Requiring that the Principal sign the Statutory Gift Rider in the presence of a notary public and two witnesses.