What happens if I don't comply with Loretta's Law?

If you do not comply, your power of attorney may be deemed invalid.

Can a notary be a witness under Loretta's Law?

Yes, a notary public can serve as one of the two required witnesses.

Loretta's Law: A Comprehensive Guide to Maryland's Power of Attorney Protections

Q: What is Loretta&#039;s Law?

Loretta&#039;s Law is the Maryland law that sets requirements for creating a valid power of attorney to protect against abuse.

Q: Do I need witnesses for a power of attorney in Maryland?

Yes, Loretta&#039;s Law requires two witnesses for the principal&#039;s signature.

Q: Where can I find forms to create a power of attorney?

You can find templates for creating a power of attorney on US Legal Forms.

Definition & Meaning

Loretta's Law refers to the Maryland General and Limited Power of Attorney Act, which was enacted in 2010. This law was established in response to the exploitation of an elderly woman, Loretta Soustek, who was financially abused by her niece through misuse of a power of attorney. The law aims to protect individuals from similar abuses by implementing stricter requirements for creating a valid power of attorney in Maryland.

Table of content

Legal Use & context

Loretta's Law is primarily used in the context of estate planning and elder law. It governs how powers of attorney are created and enforced in Maryland. The law is relevant for individuals setting up a power of attorney, as well as for agents who are designated to act on behalf of another person. Users can manage their legal needs effectively with tools like US Legal Forms, which provide templates for creating valid powers of attorney that comply with Loretta's Law.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: An elderly individual in Maryland creates a power of attorney designating their child as the agent. Under Loretta's Law, the document must be signed in the presence of two witnesses, ensuring that the principal's wishes are protected.

Example 2: A financial institution refuses to accept a power of attorney that does not meet the new witness requirements established by Loretta's Law, prompting the principal to ensure compliance before re-submitting the document. (hypothetical example)

Relevant laws & statutes

The primary statute relevant to Loretta's Law is the Maryland General and Limited Power of Attorney Act, codified at Annotated Code of Maryland, Estate and Trust Article, §§ 17-101 to 17-204. This law outlines the requirements and standards for powers of attorney in Maryland.

Comparison with related terms

Term	Definition	Key Differences
Power of Attorney	A legal document allowing one person to act on behalf of another.	Loretta's Law specifies additional requirements for validity in Maryland.
Durable Power of Attorney	A type of power of attorney that remains effective even if the principal becomes incapacitated.	Loretta's Law applies to both general and durable powers of attorney, with specific witness requirements.

Common misunderstandings

What to do if this term applies to you

If you are considering creating a power of attorney in Maryland, ensure that you understand the requirements set forth by Loretta's Law. It's advisable to use a reliable legal form template from US Legal Forms to ensure compliance. If you have complex needs or concerns about potential abuse, consulting a legal professional may be necessary.

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Quick facts

Effective Date: October 1, 2010
Key Requirement: Two witnesses for the principal's signature
Applicable Jurisdiction: Maryland
Potential Penalties: Invalidity of power of attorney if not compliant with the law

Key takeaways

Frequently asked questions

What is Loretta's Law?

Loretta's Law is the Maryland law that sets requirements for creating a valid power of attorney to protect against abuse.