It is the policy of Providence Wills and Trusts and the Law Office of Zachary B. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Before you decide, please view the 'Our Story' page or ask me to provide you with information about our qualifications and experience. The hiring of a lawyer is an important decision that should not be based solely upon advertisements. For specific legal advice that applies to your individual situation, you must be a client of our law firm. The Power of Attorney must also be recorded if the agent engages in a real estate transaction on behalf of the principal.ĭisclaimer: The information contained within this web site is for educational purposes only. One important thing to remember about using a Durable Power of Attorney is this: if the principal is incapacitated, the Power of Attorney must be recorded at the Register of Deeds office in the principal’s county of residence before it is used. If you don’t trust your agent to have that power immediately, you probably shouldn’t be appointing that person as your agent at all. Most clients are better off using a Durable Power of Attorney that goes into effect immediately upon signing it. The principal’s family will have to go through the court guardianship process instead, a much costlier and more burdensome process. So what happens if for some reason the doctor won’t sign the paperwork? The Power of Attorney is useless and nobody will have authority to manage the principal’s property. In order for the Power to become effective, the principal’s doctors must verify in writing that the principal is incapacitated. However, there is a major potential drawback to the Springing Power of Attorney. They would prefer those powers to become effective only when needed. At first glance, most people would rather not grant immediate access to such sweeping powers as are found in a Durable Power of Attorney. The appeal of a Springing Power of Attorney is obvious in the estate planning context. A Springing Power of Attorney can not be used by the agent until the principal actually becomes incapacitated.

A Springing Power of Attorney is one that is not only durable, but actually “springs” into effectiveness when the principal becomes incapacitated. Some Durable Powers of Attorney are called “Springing” Powers of Attorney. A Durable Power of Attorney is one that specifically states that it does not become void when the principal becomes incapacitated. Obviously, a void Power of Attorney would be useless for estate planning. By default, a Power of Attorney becomes void at the moment the principal becomes incapacitated. The agent will be able to collect debts, pay bills, and otherwise preserve and manage the principal’s assets while the principal is unable to do so.īecause planning for incapacity is the main purpose of a Power of Attorney in estate planning, the Power of Attorney must be “Durable”. This is because the main purpose of the Power of Attorney is to name an agent who can manage the principal’s property in the event the principal himself becomes incapacitated. The Powers of Attorney used in estate planning are usually of the second type. Or they can be broad and sweeping, allowing the agent to do virtually anything the principal himself could do. The powers that can be listed in the Power of Attorney can be limited to a specific act, for example, appearing for the principal at a real estate closing. The laws governing this relationship can be nuanced and complex, but in general the agent is only authorized to act in the principal’s best interest and may only perform actions that are specifically listed in the Power of Attorney document. In general, a Power of Attorney is a legal document that allows a person (called the “principal”) to appoint another person (called the “attorney-in-fact” or “agent”) to act on behalf of the principal. Please see our Health Care Powers of Attorney page for additional information. This section deals with Financial/Property Powers of Attorney.

Powers of attorney may deal with property and financial matters or with health care decision-making, but these two types of Powers of Attorney are typically found in two separate legal documents.

Power of attorney for finances