When Does Power of Attorney End?
A Power of Attorney (POA) is a powerful legal tool that grants a trusted individual, known as an agent or attorney-in-fact, the authority to make decisions and act on your behalf. However, the authority granted by a POA is not indefinite and can end under specific circumstances. Understanding when a POA ends is crucial for both the principal (the person who grants the power) and the agent to ensure proper management of affairs and compliance with legal requirements.
General Termination of Power of Attorney
A POA generally ends under the following conditions:
Revocation by the Principal: The principal can revoke a POA at any time, as long as they are mentally competent. This revocation must be in writing and communicated to the agent and any relevant institutions or parties involved.
Specified Expiration Date or Event: If the POA document specifies a particular date or event that terminates the authority, the POA ends at that time. For example, a POA granted for the duration of a specific business transaction will end once the transaction is completed.
Death of the Principal: A POA automatically ends upon the death of the principal. After the principal’s death, the agent no longer has the authority to manage the principal’s affairs. Instead, the estate will be handled according to the terms of the principal’s will or, if there is no will, through the intestacy process.
Incapacity of the Principal (Non-Durable POA): For a non-durable POA, the authority ends if the principal becomes incapacitated. A non-durable POA is typically used for specific tasks or short-term situations where the principal is still fully capable of making their own decisions.
Completion of the Task or Purpose: If the POA was created for a specific purpose, it ends once that purpose is fulfilled. For example, a POA created to manage a real estate sale will terminate once the sale is finalized.
Termination of Durable Power of Attorney
A durable POA is designed to remain in effect even if the principal becomes incapacitated. However, it can still end under several conditions:
Revocation by the Principal: As with any POA, a durable POA can be revoked by the principal if they are mentally competent.
Death of the Principal: A durable POA ends upon the principal’s death, shifting the responsibility of managing the principal’s affairs to the executor of the estate.
Court Order: In some cases, a court can terminate a durable POA if it finds that the agent is not acting in the best interests of the principal or if the principal’s capacity has changed in a way that necessitates the termination.
Special Considerations
Springing Power of Attorney: A springing POA becomes effective upon the occurrence of a specific event, usually the incapacitation of the principal. It ends under the same conditions as other POAs, such as revocation, death of the principal, or court order.
Medical Power of Attorney: This type of POA grants the agent authority to make healthcare decisions. It ends when the principal regains the capacity to make their own healthcare decisions, upon revocation, or at the principal’s death.
Limited Power of Attorney: Limited POAs grant the agent authority for specific tasks and automatically terminate once those tasks are completed or after a specified period.
Revoking a Power of Attorney
To revoke a POA, the principal must:
Draft a Revocation Document: Clearly state the intention to revoke the POA in a written document. Include the date and the specific POA being revoked.
Notify the Agent: Inform the agent in writing that their authority is terminated.
Inform Relevant Parties: Notify any institutions, such as banks or healthcare providers, that the POA has been revoked to ensure they no longer recognize the agent’s authority.
Consult an Attorney: For complex situations or to ensure legal compliance, it is advisable to consult with an attorney when revoking a POA.
Conclusion
Understanding when a Power of Attorney ends is essential for both the principal and the agent. Whether through revocation, completion of the specified task, or the principal’s death, knowing these conditions helps ensure that the authority granted is properly managed and legally compliant. Properly handling the termination of a POA protects the principal’s interests and provides clarity for all parties involved. If you are considering setting up or revoking a POA, consult with an attorney to navigate the legal requirements and implications.
