Powers of Attorney- Part 3

Today or Tomorrow?

One question to decide in preparing your power of attorney is to determine whether you want it effective immediately (sprung) or effective only in the event of incapacity (springing). As with most legal questions, there is no right or wrong answer, but rather pros and cons.

Your agent can use your sprung power of attorney the moment they need it (without taking any additional steps). This type of document is very efficient. It may also be used if the grantor of the power is simply out of town or unavailable.

Some individuals can not sleep at night knowing that there is an effective power of attorney out there. In that case, a springing power may be the best option. The downside of a springing power is that the grantor must be declared incapacitated (by a doctor or court). A grantor's doctor may be reluctant to declare his or her patient incapacitated, especially in a close case. Another variation of the springing power of attorney is to utilize a committee of friends and/or family members that must vote to determine that the power of attorney is effective.

If you have any questions about whether your power of attorney is springing or sprung, please consult your legal advisor.