What is a “Springing” Power of Attorney?

In Georgia, powers of attorney (POAs) are an important part of estate planning. A power of attorney is a particular kind of legal document through which the person making the document can name another person (known as the “agent” or “attorney-in-fact”) who can make decisions on their behalf. As Georgia.gov explains, there are two primary types of POAs in the state — financial powers of attorney and medical powers of attorney. Powers of attorney can be used in various circumstances, from limited representation in real estate deals to broad powers that allow an agent to make any type of financial decision.

Within the two overarching categories of powers of attorney that exist in Georgia, there are other terms that are used to refer to the nature of the power of attorney document. One term that you might come across is “springing,” in relation to a springing power of attorney. What does this mean, and is this the type of POA you should create? Our Gwinnett County estate planning lawyer can provide you with more information.

Springing POAs 

A power of attorney that is “springing” means that it is a conditional power of attorney that only “springs” into effect upon the incapacity of the party who originally created it. For example, if you know that you want to manage your own finances but you want to ensure that your bills are paid in the event of your unexpected incapacity, you might want to name an agent or attorney-in-fact who can act on your behalf in the event that you do become incapacitated. You want to make sure that person cannot make financial decisions for you beforehand, and you only want that person to have such authority if you lose capacity and cannot handle financial decisions yourself. In such a case, you would want to create a “springing” POA.

A springing POA will only take effect on the condition of your incapacity. It will be completely inactive until the condition — your incapacity — occurs. When a POA is not “springing,” it takes effect immediately, which means the person you have named as an agent or attorney-in-fact will already have the authority to make financial decisions on your behalf. Financial POAs can take effect immediately or be springing, but POAs concerning health care will only take effect upon incapacity.

Springing Versus Durable POAs 

Many people who create financial POAs will also decide to make these POAs “durable.”

While the word durable has a range of definitions in varied contexts, in the legal context as far as estate planning goes, a POA that is durable means that it lasts through your incapacity and until your death (unless you decide to revoke it while you have the capacity to do so). When a POA is not durable, it ceases to be in effect upon the creator’s incapacity.

Contact a Norcross Estate Planning Attorney 

Most residents of Gwinnett County will want to consider the creation of powers of attorney as part of their estate plan. If you have any questions about powers of attorney in general, or about the ways in which powers of attorney take effect, you should seek advice from an attorney who can help. A Norcross estate planning lawyer at Bowman Law Firm can provide you with more information about POAs and various other aspects of estate planning. Contact us today for assistance with drafting a power of attorney and creating other important estate planning documents.

Sources:

law.justia.com/codes/georgia/title-53/

georgia.gov/establish-power-attorney#:~:text=There%20are%20two%20main%20types,of%20attorney%3A%20financial%20and%20medical