Section 5-1514. Major gifts and other transfers; formal requirements; statutory form

1. If the principal intends to authorize  the  agent  to  make  gifts  and  transfers  other  than gifts authorized by subdivision
  fourteen of section 5-1502I of this title, the principal must  expressly
  grant  such  authority  either  in  a  statutory  major gifts rider to a
  statutory short form power of attorney or in a  non-statutory  power  of
  attorney  executed  pursuant  to  the  requirements  of paragraph (b) of
  subdivision nine of this section.
    2. The principal  may  authorize  the  agent  to  make  gifts  to  the
  principal's  spouse,  children and more remote descendents, and parents,
  not to exceed, for each donee, the annual  federal  gift  tax  exclusion
  amount  pursuant  to  the  Internal  Revenue  Code.  For  gifts  to  the
  principal's children and  more  remote  descendants,  and  parents,  the
  maximum amount of the gift to each donee shall not exceed twice the gift
  tax  exclusion  amount,  if  the principal's spouse agrees to split gift
  treatment pursuant to the Internal Revenue Code.
    3. The principal may also authorize the agent to:
    (a) make gifts up to  a  specified  dollar  amount,  or  unlimited  in
  amount;
    (b) make gifts to any person or persons;
    (c) make the following specified transactions:
    (1)  open,  modify  or  terminate a deposit account in the name of the
  principal and other joint tenants;
    (2) open, modify or terminate any other joint account in the  name  of
  the principal and other joint tenants;
    (3)  open,  modify  or  terminate  a  bank  account  in  trust form as
  described in section 7-5.1 of the estates, powers and  trusts  law,  and
  designate or change the beneficiary or beneficiaries of such account;
    (4) open, modify or terminate a transfer on death account as described
  in  part four of article thirteen of the estates, powers and trusts law,
  and designate  or  change  the  beneficiary  or  beneficiaries  of  such
  account;
    (5)  change  the  beneficiary  or  beneficiaries  of  any  contract of
  insurance on the life of the  principal  or  annuity  contract  for  the
  benefit of the principal;
    (6) procure new, different or additional contracts of insurance on the
  life  of  the  principal  or  annuity  contracts  for the benefit of the
  principal and designate the beneficiary or  beneficiaries  of  any  such
  contract;
    (7)  designate  or change the beneficiary or beneficiaries of any type
  of retirement benefit or plan;
    (8) create, amend, revoke, or terminate an inter vivos trust; and
    (9) create, change or terminate other property interests or rights  of
  survivorship,  and  designate or change the beneficiary or beneficiaries
  therein.
    A  gift  or  other  transfer  to  an  individual  authorized  by  this
  subdivision  may be made outright, to a trust established or created for
  such individual, to a Uniform Transfers to Minors Act account  for  such
  individual (regardless of who is the custodian), or to a tuition savings
  account  or  prepaid  tuition  plan  as defined under section 529 of the
  Internal Revenue Code for the benefit of such individual (without regard
  to who is the account owner or responsible individual for such account).
    4. An agent may not:
    (a) exercise any authority described in subdivision two  or  three  of
  this  section  unless such authority is expressly granted in a statutory
  major gifts rider to a statutory short form power of attorney  or  in  a
  non-statutory power of attorney executed pursuant to the requirements of
  paragraph (b) of subdivision nine of this section;

    (b)  make a gift to himself or herself or create in himself or herself
  an interest in  the  principal's  property  pursuant  to  any  grant  of
  authority  described  in subdivision two or three of this section unless
  such authority is expressly granted in a statutory major gifts rider  to
  a  statutory short form power of attorney or in a non-statutory power of
  attorney executed pursuant to  the  requirements  of  paragraph  (b)  of
  subdivision nine of this section.
    5.  Any  authority  granted to an agent pursuant to subdivision two or
  three or paragraph (b) of subdivision  four  of  this  section  must  be
  exercised  according  to  any  instructions provided by the principal or
  otherwise for purposes which the agent reasonably deems  to  be  in  the
  best  interest  of  the  principal,  specifically  including  financial,
  estate, or tax  planning,  including  minimization  of  income,  estate,
  inheritance, generation-skipping transfer or gift taxes.
    6.  Construction of the provisions of the statutory major gifts rider.
  (a) In a statutory major gifts rider to a statutory short form power  of
  attorney,  the  language "I grant authority to my agent to make gifts to
  my spouse, children and more remote descendants,  and  parents,  not  to
  exceed,  for  each  donee,  the annual federal gift tax exclusion amount
  pursuant to the Internal Revenue Code. For gifts to my children and more
  remote descendants, and parents, the maximum amount of the gift to  each
  donee shall not exceed twice the gift tax exclusion amount, if my spouse
  agrees  to  split  gift treatment pursuant to the Internal Revenue Code"
  must be construed to mean that the principal authorizes the agent:
    (1) To make gifts on  behalf  of  the  principal  to  the  principal's
  spouse,  children  and  other descendants, and parents. Gifts to a donee
  shall not exceed in any calendar year the amount of the federal gift tax
  exclusion available to  the  principal  under  section  2503(b)  of  the
  Internal  Revenue  Code.  Gifts  may  be made outright or by exercise or
  release of a presently exercisable general power of appointment held  by
  the  principal,  to  a  trust established or created for such individual
  (provided that gifts to such trust qualify  for  the  federal  gift  tax
  exclusion under section 2503(b) or (c) of the Internal Revenue Code), to
  a   Uniform   Transfers  to  Minors  Act  account  for  such  individual
  (regardless of who is the custodian), to a tuition  savings  account  or
  prepaid  tuition  plan  as  defined  under  section  529 of the Internal
  Revenue Code for the benefit of such individual (without regard  to  who
  is the account owner of or responsible person for such account);
    (2)  To  make  gifts up to twice the annual federal gift tax exclusion
  amount on behalf of both the principal and the  principal's  spouse,  to
  the  principal's  children  and  other  descendants, and parents, if the
  principal's spouse consents to the splitting of such gifts  pursuant  to
  section 2513 of the Internal Revenue Code;
    (3)  To  consent,  pursuant to Section 2513(a) of the Internal Revenue
  Code, to the splitting of gifts made by the principal's  spouse  to  the
  principal's  children  and  other  descendants in any amount, and to the
  splitting of gifts made by the principal's spouse to any  other  persons
  in  amounts  not  exceeding the aggregate annual gift tax exclusions for
  both spouses under Section 2503(b) of said Code (or  cognate  provisions
  of any successor statute); and
    (4)  To  satisfy  pledges made to organizations, whether charitable or
  otherwise, by the principal; and
    (b) Any authority granted to an agent under a  statutory  major  gifts
  rider  to  a statutory short form power of attorney must be construed to
  mean that the principal authorizes the agent:
    (1) To prepare, execute, consent to on behalf of  the  principal,  and
  file  any  return, report, declaration or other document required by the
  laws of the United States, or by  any  state  or  political  subdivision

  thereof,  or  by  any  foreign country or political subdivision thereof,
  which the agent deems to be desirable or necessary with respect  to  any
  gift made under the authority of this section;
    (2)  To  execute,  acknowledge, seal and deliver any deed, assignment,
  agreement, trust agreement, authorization, check,  or  other  instrument
  which  the  agent  deems  useful  for  the  accomplishment of any of the
  purposes enumerated in this section;
    (3) To prosecute, defend, submit to  alternative  dispute  resolution,
  settle  and  propose  or  accept  a compromise with respect to any claim
  existing in favor of or against the principal based on or involving  any
  gift transaction or to intervene in any related action or proceeding;
    (4) To hire, discharge and compensate any attorney, accountant, expert
  witness,  or  other  assistant  or  assistants when the agent deems that
  action to be desirable for the proper execution by the agent of  any  of
  the authorities described in this section, and for the keeping of needed
  records thereof; and
    (5) In general, and in addition to but not in contravention of all the
  specific  acts listed in this section, to do any other act or acts which
  the agent deems desirable or necessary to  complete  any  such  gift  on
  behalf of the principal.
    (c)  The  authority  explicitly  authorized  in  this section shall be
  construed to include any like authority authorized in any other  section
  of  this  title. Accordingly, such like authorities as are authorized in
  any other section of this title may not be exercised by the agent unless
  they are expressly granted to the agent in  the  statutory  major  gifts
  rider  or  in a non-statutory power of attorney executed pursuant to the
  requirements of paragraph (b) of subdivision nine of this section.
    (d) The statutory major  gifts  rider  may  be  modified  pursuant  to
  section   5-1503   of   this  title  to  contain  additional  provisions
  authorizing the agent to make any or all of the  transactions  specified
  in subdivision three of this section.
    7.  All  authority  described  in  this  section  shall be exercisable
  equally with respect to a gift of any property in which the principal is
  interested at the time the power of attorney is given or  in  which  the
  principal  becomes  interested  after  that time, and whether located in
  this state or elsewhere.
    8. If, after naming the spouse as a permissible recipient  of  gifting
  or  other  transfers,  the principal is divorced, his or her marriage is
  annulled or its nullity declared, the divorce, annulment, declaration of
  nullity or dissolution revokes the  authority  to  gift  to  the  former
  spouse,  unless  the  statutory  major  gifts rider or the non-statutory
  power of attorney executed pursuant to the requirements of paragraph (b)
  of subdivision nine of this section expressly provides otherwise. If the
  authority to gift to  the  former  spouse  is  revoked  solely  by  this
  subdivision,  it  shall  be revived by the principal's remarriage to the
  former spouse.
    9. To be valid, a statutory major gifts rider  to  a  statutory  short
  form power of attorney must:
    (a)  Be  typed  or printed using letters which are legible or of clear
  type no less than twelve point in size, or, if in writing, a  reasonable
  equivalent thereof.
    (b)  Be  signed  and  dated  by  a  principal  with capacity, with the
  signature of the principal duly acknowledged in  the  manner  prescribed
  for  the  acknowledgment of a conveyance of real property, and witnessed
  by two persons who are  not  named  in  the  instrument  as  permissible
  recipients  of  gifts  or  other  transfers,  in the manner described at
  paragraph two of subdivision (a) of section 3-2.1 of the estates, powers
  and trusts law.

    (c) Be accompanied by a statutory short  form  power  of  attorney  in
  which the authority (SMGR) is initialed by the principal.
    (d)  Be executed simultaneously with the statutory short form power of
  attorney and in the manner provided in this section.
    10. The use of the following shall  be  construed  as  the  "Statutory
  Major Gifts Rider" for a statutory short form power of attorney:
                             "POWER OF ATTORNEY
                    NEW YORK STATUTORY MAJOR GIFTS RIDER
  AUTHORIZATION TO MAKE MAJOR GIFTS OR OTHER TRANSFERS
    CAUTION  TO THE PRINCIPAL: This OPTIONAL rider allows you to authorize
  your agent to make major gifts or other transfers of your money or other
  property during your lifetime. Granting any of the  following  authority
  to your agent gives your agent the authority to take actions which could
  significantly  reduce  your  property  or  change  how  your property is
  distributed  at  your  death.  "Major  gifts  or  other  transfers"  are
  described  in  section 5-1514 of the General Obligations Law. This Major
  Gifts Rider does not require your agent to exercise  granted  authority,
  but  when  he  or  she  exercises  this  authority,  he  or she must act
  according to any instructions you provide, or  otherwise  in  your  best
  interest.
    This  Major  Gifts Rider and the Power of Attorney it supplements must
  be read together as a single instrument.
    Before signing this document authorizing  your  agent  to  make  major
  gifts  and  other transfers, you should seek legal advice to ensure that
  your intentions are clearly and properly expressed.
    (a) GRANT OF LIMITED AUTHORITY TO MAKE GIFTS
    Granting  gifting  authority  to  your  agent  gives  your  agent  the
  authority   to  take  actions  which  could  significantly  reduce  your
  property.
    If you wish to allow your agent to make gifts to himself  or  herself,
  you must separately grant that authority in subdivision (c) below.
    To  grant your agent the gifting authority provided below, initial the
  bracket to the left of the authority.
    ( ) I grant authority to my agent to make gifts to my spouse, children
  and more remote descendants, and parents, not to exceed, for each donee,
  the annual federal gift tax exclusion amount pursuant  to  the  Internal
  Revenue  Code. For gifts to my children and more remote descendants, and
  parents, the maximum amount of the gift to each donee shall  not  exceed
  twice  the  gift tax exclusion amount, if my spouse agrees to split gift
  treatment pursuant to the Internal Revenue Code.
  This authority  must  be  exercised  pursuant  to  my  instructions,  or
  otherwise for purposes which the agent reasonably deems to be in my best
  interest.
    (b) MODIFICATIONS:
    Use this section if you wish to authorize gifts in excess of the above
  amount, gifts to other beneficiaries or other types of transfers.
  Granting  such authority to your agent gives your agent the authority to
  take actions which  could  significantly  reduce  your  property  and/or
  change  how  your  property is distributed at your death. If you wish to
  authorize your agent to make gifts or transfers to himself  or  herself,
  you must separately grant that authority in subdivision (c) below.
  (  )  I  grant  the  following  authority  to  my agent to make gifts or
  transfers pursuant to my instructions, or otherwise for  purposes  which
  the agent reasonably deems to be in my best interest.
  (c)  GRANT  OF  SPECIFIC  AUTHORITY  FOR AN AGENT TO MAKE MAJOR GIFTS OR
  OTHER TRANSFERS TO HIMSELF OR HERSELF: (OPTIONAL)
  If you wish to authorize your  agent  to  make  gifts  or  transfers  to
  himself  or  herself,  you  must  grant  that authority in this section,

  indicating to which agent(s)  the  authorization  is  granted,  and  any
  limitations and guidelines.
  (  )  I  grant specific authority for the following agent(s) to make the
  following major gifts or other transfers to himself or herself:
  This authority  must  be  exercised  pursuant  to  my  instructions,  or
  otherwise for purposes which the agent reasonably deems to be in my best
  interest.
  (d)  ACCEPTANCE  BY  THIRD PARTIES: I agree to indemnify the third party
  for any claims that  may  arise  against  the  third  party  because  of
  reliance on this Major Gifts Rider.
  (e) SIGNATURE OF PRINCIPAL AND ACKNOWLEDGMENT:
  In  Witness Whereof I have hereunto signed my name on _________________,
  20____.
  PRINCIPAL signs here:
  ________________________________
  (acknowledgement)
    (f) SIGNATURES OF WITNESSES:
  By signing as a witness, I acknowledge that  the  principal  signed  the
  Major  Gifts Rider in my presence and the presence of the other witness,
  or that the principal acknowledged to me that the principal's  signature
  was affixed by him or her or at his or her direction. I also acknowledge
  that  the  principal has stated that this Major Gifts Rider reflects his
  or her wishes and that he or she has signed it  voluntarily.  I  am  not
  named herein as a permissible recipient of major gifts.
  ___________________________        _________________________
  Signature of witness 1             Signature of witness 2
  ___________________________        _________________________
  Date                               Date
  ___________________________        _________________________
  Print name                         Print name
  ___________________________        _________________________
  Address                            Address
  ___________________________        _________________________
  City, State, Zip code              City, State, Zip code
  (g) This document prepared by: ____________________________"