An advance power of attorney is a legal agreement that grants someone power of attorney only in the event of a specific event. The agent has a fiduciary obligation to act in the best interests of the principal. The power of attorney only becomes active upon the occurrence of a specific event, which must be indicated in writing. The agent must provide proof that the event occurred before the power of attorney becomes active.
Advance power of attorney is a formal legal agreement that gives someone power of attorney only in the event of a prompt event. Primary powers of attorney are valid in the United States, England, and most other countries that recognize a power of attorney designation. An instant power of attorney can be an important estate planning tool and an important way to ensure that a person’s assets are protected in the event of injury or incapacity.
A power of attorney gives another individual ownership and control of a person’s affairs. The person granting the power of attorney is referred to as the principal or licensor. The person who is vested with power of attorney is referred to as the de facto agent or attorney.
A principal can grant a limited power of attorney or an absolute power of attorney. The granting of authority entitles the agent to act on behalf of the principal to the extent of the authority. For example, power of attorney may be granted over a bank account, entire estate, or the right to make health care decisions.
The agent acting on behalf of the principal has a fiduciary obligation to act in the best interests of the principal. This means that the agent who is vested with the authority to act on behalf of the principal must actually act for the principal. He or she must not take any action that could endanger the principal’s well-being.
When a triggered power of attorney is granted, the power of attorney does not become active immediately. In other words, the principal gives the agent the authority to act on behalf of the principal, but the agent does not have this right or authority right away. The resulting power of attorney ensures that authority only acquires or becomes active upon the occurrence of a specific event.
Written documents that create a triggered power of attorney must indicate the specific event that triggers the power of attorney. For example, the principal creating the nascent power of attorney may specify that the agent’s authority matures or becomes active if the principal becomes disabled, or if the principal suffers from a specific illness. If and when the event occurs, the agent is invested with authority. Typically, you must demonstrate that you have power of attorney by producing power of attorney documents and some evidence that the event that triggered the power of attorney occurred. This proof can be, for example, in the form of a medical certificate.
Protect your devices with Threat Protection by NordVPN
