Question 1

What is a power of attorney (POA)?

Accepted Answer

A power of attorney is a legal document that authorizes one person (the agent or attorney-in-fact) to act on behalf of another person (the principal) in legal, financial, or medical matters. It allows the agent to make decisions and sign documents when the principal is unable or unavailable to do so.

Question 2

What are the different types of power of attorney?

Accepted Answer

The main types include general POA (broad authority over finances and legal matters), limited or special POA (authority for specific transactions only), durable POA (remains effective if the principal becomes incapacitated), springing POA (takes effect only upon a triggering event), and healthcare POA (medical decisions only).

Question 3

When does a power of attorney take effect?

Accepted Answer

A standard POA takes effect immediately upon signing, while a springing POA only becomes effective when a specified event occurs, such as the principal becoming mentally incapacitated. The document should clearly state when the agent's authority begins and what conditions, if any, must be met.

Question 4

Can a power of attorney be revoked?

Accepted Answer

Yes, the principal can revoke a power of attorney at any time as long as they are mentally competent. Revocation should be done in writing, and all parties who relied on the POA — including banks, healthcare providers, and the agent — should be notified of the revocation to prevent unauthorized actions.

Question 5

What actions can an agent perform under a power of attorney?

Accepted Answer

The agent's authority depends on the type and scope of the POA. A general POA may allow managing bank accounts, paying bills, selling property, filing taxes, and making investments. A limited POA restricts the agent to specific actions like signing a single real estate transaction or managing one account.

Question 6

What is the difference between a durable and non-durable power of attorney?

Accepted Answer

A durable POA remains in effect even if the principal becomes mentally incapacitated, which is essential for long-term planning. A non-durable POA automatically terminates when the principal becomes incapacitated, making it suitable only for specific, time-limited transactions while the principal is fully competent.

Question 7

How does a healthcare POA differ from a financial one?

Accepted Answer

A healthcare POA grants the agent authority to make medical decisions on the principal's behalf, such as choosing treatments, selecting doctors, and making end-of-life care decisions. A financial POA covers monetary and property matters like managing bank accounts, paying bills, and handling real estate transactions.

Question 8

Who can serve as an agent under a power of attorney?

Accepted Answer

Any competent adult can serve as an agent under a power of attorney. Most people choose a trusted family member, close friend, or professional fiduciary such as an attorney or accountant. The agent should be someone who is reliable, honest, and capable of managing the types of decisions they will be responsible for.

Question 9

Does a power of attorney expire?

Accepted Answer

A POA can be set to expire on a specific date or upon completion of a particular task, as stated in the document. If no expiration is specified, it generally remains valid until the principal revokes it, becomes incapacitated (for non-durable POAs), or dies. The principal's death automatically terminates all powers of attorney.

Question 10

What happens to a power of attorney after the principal's death?

Accepted Answer

All powers of attorney automatically terminate upon the principal's death. After death, the agent no longer has any legal authority to act on behalf of the deceased. Estate management then passes to the executor named in the will or an administrator appointed by the probate court.

Related Documents

Last Will and Testament

Living Will / Advance Directive

Frequently Asked Questions