What is a Durable Power of Attorney?
A durable power of Attorney allows an individual, known as the principal, to designate another person, the agent, to make legal decisions on their behalf. The agent's power, clearly outlined in the power of attorney document, includes any legal action the principal could take within the bounds of the specified powers. A durable power of attorney is a critical component of a comprehensive estate plan.
Terminating a Power of Attorney: Key Factors to Know
Section 709.2109 of the Florida Statutes clearly outlines the termination of a power of attorney. A power of attorney terminates when:
- (a) The principal dies;
- (b) The principal becomes incapacitated, if the power of attorney is not durable;
- (c) The principal is adjudicated totally or partially incapacitated by a court, unless the court determines that certain authority granted by the power of attorney is to be exercisable by the agent;
- (d) The principal revokes the power of attorney;
- (e) The power of attorney provides that it terminates;
- (f) The purpose of the power of attorney is accomplished; or
- (g) The agent's authority terminates and the power of attorney does not provide for another agent to act under the power of attorney.
A power of attorney cannot extend beyond the principal's death, making it impossible to draft a power of attorney for use after the principal's passing. Financial institutions and legal entities will not recognize an agent's authority once the principal dies.
Managing the Principal's Assets Post-Death
After the death of the Principal, the Estate enters a new form of management. What happens next depends on whether a revocable living trust, will is in place, or if someone dies without an estate plan (intestate). In the event of a will, the property must be probated, and the appointed personal representative, also known as the executor, steps in to take care of the deceased's belongings and assets. It's a pivotal point to remember, though, that not everything the principal owns comes under the watchful eye of the personal representative as certain assets, like those with named beneficiaries or those that pass on automatically at the time of death – think retirement accounts or certain bank accounts – aren't part of the principal's Estate and stay outside the realm of the personal representative's duties.
