Definitions:
The Principal - the person who executes the Power of Attorney and authorizes someone to act on their behalf.
The Agent - the person nominated to act on behalf of the Principal and make decisions for them.
Durable Power of Attorney - Durable power of attorney documents are in effect as soon as they are signed. They remain in force until the death of the principal or until the document is revoked. This means that the Agent can make decisions and act even when the Principal is competent and able to act for themself. Our Financial POA documents are General Durable Power of Attorney documents.
Our Financial Power of Attorney documents authorize the agent named therein to manage or act on financial assets not titled in the name of the client's Revocable Trust. Any assets that are funded into a revocable trust are managed by the trustee of the trust, not the financial power of attorney agent.
Springing Power of Attorney - A springing power of attorney document is only in effect once the Principal is legally incompetent or physically incapacitated and unable to make decisions for themself. Healthcare power of attorney documents are always springing power of attorney documents. In order for a named Heathcare Agent to begin to make decisions for someone, the Principal's incapacity has to be verified by a healthcare professional. Typically, that verification is done in the form of a letter written by a doctor, stating that the person cannot make decisions for themself. Some Healthcare Power of Attorney documents require two doctors' letters.