What Actually Is A Power Of Attorney?
In simple terms, a power of attorney is a document that gives someone the ability to legally act on behalf of another person. It is a legal instrument executed by a principal (also known as the creator) that gives legal authority to someone else, who is referred to as the agent or attorney in fact. The agent or attorney, in fact, will act on the principal’s behalf for all items specified in the durable power of attorney. In Florida, the term ‘durable’ in connection with the power of attorney means that if the principal becomes mentally incapacitated, then the durable power of attorney continues to work. A power of attorney can be written in such a way that it affords the agent a broad laundry list of powers or a limited and specific number of powers.
What Is The Principal In A Power Of Attorney?
The principal in a power of attorney is the person who gives someone the ability to sign documents or conduct business transactions on the principal’s behalf.
How Is Incapacity Defined In Florida?
Under most durable powers of attorney, incapacity is defined as the inability to understand the nature or legal effect of the documents being signed, and in most cases, a judge or other fact-finder will determine whether someone should be deemed incapacitated. Incapacity is defined in a durable power of attorney instrument itself and does not require a formal legal finding of incapacity. Generally speaking, a person would have a durable power of attorney so that upon their incapacity, they would have someone remain in their stead. In Florida, since 2011, attorneys have not had legal authority to create a springing durable power of attorneys, which would take effect only upon incapacity of the principal. This means that if someone signed a durable power of attorney after 2011, it became effective on the date of signing.
Why Should I Have A Power Of Attorney?
Everyone—regardless of their age—should have a power of attorney document in place for the main reason of avoiding a court-supervised guardianship of their financial affairs upon their incapacity. A power of attorney can end up saving tens of thousands of dollars in legal court proceedings.
Many people avoid getting a durable power of attorney because they don’t want to spend the money or because they have misconceptions about what it means. However, business, as usual, can continue once someone has signed a durable power of attorney; it will typically only be used once that person becomes unable to conduct their own financial affairs due to an event which renders them incapacitated.
What Are The Types Of Power Of Attorney Forms?
There are different categories of power of attorney forms. A specific power of attorney gives another person (an agent) the ability to conduct a specific action on behalf of the principal of the power of attorney. This is the most commonly used specific power of attorney. For example, someone may give their spouse specific power of attorney to complete a real estate sale and appear at closing on their behalf. Under such circumstances, this power of attorney would relate to one parcel of property and give authority to the spouse to sign off on that property, and it would end after a specific period of time.
A general power of attorney gives an agent or attorney in fact a wide range of powers relating to almost any type of transaction, such as insurance planning, signing contracts, dealing with mail, and dealing with medical bill providers. Under the old historical common law, a power of attorney document stopped working if the person who signed it became incapacitated. Thus, the concept of a durable power of attorney defeats the old common law problem and allows the person named in the document to continue carrying on a business even though the owner of the business may not be able to themselves.
For more information on Durable Power Of Attorney In Florida, an initial consultation is your next best step. Get the information and legal answers you’re seeking by calling (904) 398-6100 today.
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