6 Powers of Attorney

Question 1

Terms for Giver & Receiver of powers in a Powers of Attorney

Answer 1

Principal & Agent

Question 2

General POA

Answer 2

Grant the agent authority to make a broad array of decisions (financial, legal, business). Lapses at incapacitation/disability.

Question 3

Springing POA

Answer 3

“Springs” into operation when the principal becomes legally incapacitated (which must be confirmed, which may delay decisions)

Question 4

Non-Durable POA

Answer 4

Lapses at incapacitation

Question 5

Durable POA

Answer 5

Immediately in operation, continues through incapitation/disablement, and probably lapses at death

Question 6

Limited POA

Answer 6

For a specific purpose (eg, a portoflio manager on behalf of an account holder) and probably lapses at incapacitation

Question 7

Special POA

Answer 7

Agent acts on behalf of principal for a specific power; once completed or period has passed, the authority expires

Question 8

How often to review/update POA?

Answer 8

• Review every 3-5 years
• Draft every 3 years or whenever a substantive change occurs