Individuals concerned about experiencing a personal emergency can plan for the unpredictable. Powers of attorney and other advance directives help ensure that people have appropriate support when they are vulnerable due to medical challenges.
Powers of attorney designate trustworthy individuals to act as agents or attorneys-in-fact. Depending on the terms included in the documents, powers of attorney can extend financial or medical authority to specific people when an individual becomes incapacitated.
Those drafting powers of attorney often have an interest in limiting the documents to prevent the misuse of authority. If they understand when powers of attorney naturally lose their legal power, they may feel more confident about appointing someone to handle their needs in an emergency. The three scenarios below can all render powers of attorney ineffective.
The death of the principal
The principal or person drafting the powers of attorney designates someone to act on their behalf while they are alive. The agent or attorney-in-fact they select might be the same person they appoint as their personal representative in their will. However, they might have appointed two different people to these positions. Powers of attorney lose their authority after the death of the person who drafted the documents. Their assets become the responsibility of their estate at that point, and the personal representative they selected then has the power to manage those assets.
When incapacity becomes permanent
Frequently, people experiencing medical emergencies eventually recover. In some cases, people’s incapacitating medical issues become permanent. The courts may declare them permanently incapacitated. At that point, standard powers of attorney lose their authority. Only durable powers of attorney continue to protect an individual if they become permanently incapacitated.
After the principal recovers
The best-case scenario after a medical emergency is that the injured or sickened person makes a full recovery. They undergo treatment or naturally heal. They eventually regain the ability to communicate and assess their circumstances. At that point, they can start making their own health care decisions or managing their own finances.
Principals establishing power of attorney paperwork may want to plan carefully to limit the authority granted and ensure they have protection when they are at risk. Learning the basics about powers of attorney can help people create effective estate planning documents.