Written by Benjamin Kingsley
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.
A financial power of attorney typically becomes effective at one of two points, depending on how the document is drafted and the specific wishes of the principal (the person granting the power of attorney):
1. Immediate Effect: In many cases, a financial power of attorney becomes effective as soon as it is properly executed, meaning signed by the principal and, if required by state law, witnessed and/or notarized. This type of power of attorney is often referred to as a “durable” power of attorney, as it remains in effect even if the principal becomes incapacitated.
2. Upon Incapacity: Alternatively, a financial power of attorney may be drafted as a “springing” power of attorney. This means that it only takes effect when a specified event occurs, typically when the principal becomes incapacitated. The document should clearly define how incapacity is to be determined, often requiring one or more physicians to certify that the principal is unable to manage their financial affairs.
It is important to note that the specific rules governing when a financial power of attorney becomes effective can vary by jurisdiction. Some states may have additional requirements or restrictions. Furthermore, the exact timing of effectiveness can be customized within the document itself, provided it complies with applicable state laws.
Regardless of when it becomes effective, a financial power of attorney terminates upon the principal’s death, unless revoked earlier by the principal or invalidated by a court. It is advisable for individuals to consult with a qualified attorney in their jurisdiction to ensure their financial power of attorney is properly drafted and aligns with their specific needs and intentions.
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.