What is a Power of Attorney?
A power of attorney grants a trusted individual (an agent or attorney-in-fact) the authority to act on your behalf. While a power of attorney may be used for various purposes, it is commonly used to appoint an agent to manage your financial affairs if you become incapacitated.
Does a Power of Attorney Take away the Grantor’s Authority?
No. The grantor maintains his authority so long as he has the legal capacity to make decisions.
When does a Power of Attorney Become Effective?
Generally, a power of attorney becomes effective immediately upon execution. However, the grantor may execute a “springing power of attorney” which does not become effective until a specified date or the occurrence of a future event.
Can a Power of Attorney be terminated?
A power of attorney terminates immediately upon the grantor’s death and may be terminated:
-
If the grantor revokes it.
-
Upon the occurrence of a termination event as stated in the power of attorney.
-
Once the purpose of the power of attorney has been fulfilled.
-
Unless stated otherwise, if married to the agent at the time of executing the power of attorney, the power of attorney is terminated when a legal action is filed with the court for divorce or legal separation.