Variable 1: What types of powers does the power of attorney convey?
Powers of attorney typically allow someone else to make one of two types of decisions: either financial or health-care related. Financial powers of attorney are used to give someone else the ability to manage your bank accounts, bills, as well as your ability to enter into new agreements. Healthcare powers of attorney, on the other hand, allow another person or organization to make health care decisions, such as what kind of medical treatment you receive if you are incapacitated.
Variable 2: When do the powers of attorney take effect?
When you make the power of attorney, you can choose when the document gives your agent the ability to make decisions on your behalf. Most powers of attorney will take effect immediately, meaning your agent or attorney-in-fact will have the legal authority to act on your behalf as soon as you sign the document. Other powers of attorney, known as springing powers, can take effect at a later date. These are often used, for example, to “spring” into action when you become sick or incapacitated.
Variable 3: When do the powers of attorney terminate?
Anyone who makes a power of attorney can terminate those powers at any time. Other than that, the power of attorney will automatically end up on one of two conditions. Powers of attorney terminate when the person who creates them, called a principal, becomes incapacitated. However, you can also make a durable power of attorney which will not terminate upon the principal’s incapacitation, known as a durable power. These powers continue to have effect even after the principle is incapacitated. They terminate when the principal dies, or upon regaining capacity, chooses to terminate the power.
Latest posts by Michael Robinson, Estate Planning Attorney (see all)
- ABLE Accounts - April 24, 2019
- What Are 529 Plans and What Are Their Advantages? - April 17, 2019
- Beneficiary Designations, etc., Aren’t a True Substitute for a Trust - April 17, 2019