POWER OF ATTORNEY - Springing Power of Attorney - A Springing Power of Attorney is a legal document that grants someone the authority to act on your behalf, but only after a specific condition is met, typically your incapacity or inability to manage your affairs.
How it differs from a regular (durable) power of attorney:
A regular power of attorney is effective immediately upon signing, whereas a springing power of attorney remains inactive until the specified condition is met.
When it's used:
People often use Springing Powers of Attorney to ensure that someone they trust can manage their affairs if they become unable to do so themselves, but they want to retain control as long as possible.
Common condition:
The most common condition for a Springing Power of Attorney to become effective is the principal (the person granting the power) becoming incapacitated or unable to manage their affairs.
Advantages:
- Control: The principal retains control over their affairs until they become incapacitated.
- Peace of mind: Knowing that someone trustworthy will step in if needed.
Disadvantages:
- Delay: The agent may need to obtain a medical determination of incapacity before they can act, which can cause delays.
- Complexity: The conditions under which the power of attorney becomes effective must be clearly defined in the document.
POWER OF ATTORNEY - Springing Power of Attorney (Nationwide)
POWER OF ATTORNEY - Springing Power of Attorney - A Springing Power of Attorney is a legal document that grants someone the authority to act on your behalf, but only after a specific condition is met, typically your incapacity or inability to manage your affairs.
How it differs from a regular (durable) power of attorney:
A regular power of attorney is effective immediately upon signing, whereas a springing power of attorney remains inactive until the specified condition is met.When it's used:
People often use Springing Powers of Attorney to ensure that someone they trust can manage their affairs if they become unable to do so themselves, but they want to retain control as long as possible.Common condition:
The most common condition for a Springing Power of Attorney to become effective is the principal (the person granting the power) becoming incapacitated or unable to manage their affairs.Advantages:
- Control: The principal retains control over their affairs until they become incapacitated.
- Peace of mind: Knowing that someone trustworthy will step in if needed.
Disadvantages:
- Delay: The agent may need to obtain a medical determination of incapacity before they can act, which can cause delays.
- Complexity: The conditions under which the power of attorney becomes effective must be clearly defined in the document.