Michigan Power of Attorney: What Changed in 2023 (UPOAA Guide)

If you signed a Michigan Power of Attorney before 2024, you may need to update it. In 2023, Michigan enacted Public Act 187, adopting the Uniform Power of Attorney Act (UPOAA) and replacing the prior statutory framework. The changes are significant — particularly for agents trying to use older POA documents with financial institutions and third parties.

This guide explains what changed, what your POA must include, and how to make sure the document you create will actually work when your family needs it.

What Is a Power of Attorney and Why It Matters

A Power of Attorney (POA) is a legal document in which you — the "principal" — grant another person — the "agent" or "attorney-in-fact" — the authority to act on your behalf in financial or legal matters.

It's not a document for after you die. That's what a will or trust is for. A POA protects you during your lifetime — specifically, if you become incapacitated due to illness, injury, or cognitive decline and can no longer manage your own affairs.

Consider what happens without one: if you're in a serious accident and cannot manage your finances, your spouse may need to go to court to be appointed your legal guardian or conservator. That process takes months, costs thousands of dollars, and requires ongoing annual reporting to the court. A properly drafted POA avoids all of that by designating your chosen agent in advance.

Even if you have a living trust, a financial POA remains important for assets outside the trust, tax matters, and situations not covered by the trust document.

Michigan's Adoption of the UPOAA — What Changed in 2023

Michigan's 2023 PA 187, effective February 13, 2024, adopted the Uniform Power of Attorney Act. Here are the most important changes:

Third-Party Acceptance — Now Mandatory

Under the old law, banks and financial institutions frequently refused to honor valid POAs — a deeply frustrating experience for families in crisis. The UPOAA addresses this directly: third parties (banks, financial institutions, government agencies) are generally required to accept a UPOAA-compliant POA. They may request a certification or opinion of counsel, but they cannot simply refuse without a specific legal justification. Refusal without reasonable cause now exposes third parties to liability.

Agent Duties Are Now Codified

The UPOAA explicitly codifies an agent's duties: to act in good faith, within the scope of authority granted, loyally for the principal's benefit, and to keep the agent's funds separate from the principal's. This protects principals from financial exploitation and clarifies what agents are and are not permitted to do.

Durability Presumption Changed

Under prior Michigan law, a POA was durable only if it contained specific language stating it survived incapacity. Under the UPOAA, the presumption flips: a POA is presumed durable unless it expressly states otherwise. This is an important structural change.

Durable vs. Non-Durable POA

A "durable" POA remains effective even if you become incapacitated. This is the type most Michigan families need — its entire purpose is to authorize an agent to act when you can't.

A "non-durable" POA terminates automatically if the principal becomes incapacitated. This is useful for a specific limited transaction — authorizing someone to sign at a real estate closing when you'll be out of the country, for example — but it provides no incapacity protection.

Signing Requirements Under MCL 700.5501

Michigan's UPOAA provides two valid signing options for a financial POA — you need only one, not both:

In plain terms: you can have your POA notarized, OR you can sign it in front of two qualifying witnesses. You don't need both — though using both (notary plus witnesses) provides the strongest document and is the approach in our POA template.

Witness restrictions: witnesses cannot be your designated agent, and they should not be individuals who benefit from your estate (heirs or devisees). Choose neutral parties — a neighbor, a colleague, a friend who isn't named in your estate plan.

The Agent's Acknowledgment Form — Now Required

This is one of the most significant practical changes under Michigan's UPOAA:

Before your agent can use the POA to act on your behalf, they must sign this acknowledgment form — essentially a statement that they understand their legal duties as your agent. Banks and financial institutions may require this document before honoring the POA.

Our POA Bundle ($67) includes both the UPOAA-compliant durable POA template and a completed, ready-to-sign Agent's Acknowledgment form. Using an older or generic form that doesn't include the acknowledgment may result in your agent being refused by financial institutions.

Gifting Powers Must Be Explicitly Authorized

One of the most important limitations in the UPOAA is that certain "hot powers" — authority that carries significant risk of financial exploitation — are only valid if explicitly granted in the POA document.

Gifting authority must be specifically named in the POA. This prevents agents from transferring assets to themselves or others as "gifts" without explicit authorization from the principal. If your estate plan contemplates gifting for tax planning purposes (annual exclusion gifts, for example), your POA must specifically authorize this.

Other "hot powers" requiring explicit authorization include: creating or modifying trusts, changing beneficiary designations, waiving the principal's right to be a beneficiary of a joint and survivor annuity, and exercising fiduciary powers the principal holds.

Springing vs. Immediate POA

A "springing" POA takes effect only upon the occurrence of a specific event — typically a physician's certification of incapacity. An "immediate" POA takes effect as soon as it's signed.

Both approaches have their place:

Immediate POA

• Simpler to use — the agent can act without first obtaining medical certifications
• Faster in an emergency — no waiting for doctors to certify incapacity
• More practical for older adults who want a family member to handle routine matters now
• Requires strong trust in your designated agent, since they can act immediately

Springing POA

• Doesn't give your agent any authority until you're actually incapacitated
• Protects against premature use or exploitation by an agent
• Can cause delays: banks may require a specific form of incapacity certification, and getting it in a time-sensitive situation can be frustrating
• More commonly used when there is less certainty about the agent's trustworthiness

For most Michigan families with a trusted spouse or adult child as their agent, an immediate durable POA is the more practical choice. If you have concerns about your agent using the authority prematurely, a springing POA provides additional protection — just ensure the incapacity standard is clearly defined in the document.

Common POA Mistakes — and How to Avoid Them

No Backup Agent Named

If your designated agent is unwilling or unable to serve when you need them, and you haven't named a successor agent, your family is back in probate court seeking a conservatorship. Always name at least one backup. Your POA template should have a clear successor agent provision.

Not Giving Copies to Relevant Institutions

A POA sitting in a drawer doesn't help anyone in an emergency. Once signed, provide certified copies to your bank, brokerage, and any institution your agent may need to interact with. Pre-register it if the institution offers that option.

Using an Outdated Form

Michigan's UPOAA changes mean that older POA forms — particularly those created before February 2024 — may not comply with the current agent acknowledgment requirements, the updated signing rules, or the explicit gifting authority provisions. If your POA was created under the old law, consider updating it.

Forgetting the Agent's Acknowledgment

Even with a valid UPOAA-compliant POA, if your agent hasn't signed the acknowledgment form, financial institutions may refuse to honor the document. Complete the acknowledgment at the same time you execute the POA — don't wait until it's needed.

Insufficient or Overly Broad Authority

Granting authority that is too narrow means your agent can't handle everything that needs handling. Granting authority that is too broad — especially gifting powers — without appropriate safeguards creates exploitation risk. Our POA Bundle is drafted to strike the right balance for a typical Michigan family's needs.