A power of attorney (POA) is a legally binding document that someone designates to someone else, called the agent. The purpose is for the agent to act on the persons’ behalf to make decisions on certain important matters.
Different Types of Power of Attorney
There are a few different types of power of attorney, and each one dictates different degrees of responsibility that may be delegated, and also when to implement the POA.
A Medical Power of Attorney
This POA also goes by the name of a health care proxy or durable power of attorney for healthcare decisions. The POA may be implemented only if certain conditions take place. If the person is conscious and of sound mind, a medical power of attorney cannot be implemented. There are also medical POAs that are written to cease once the person recovers from an incapacitating condition.
A Conventional Power of Attorney
This POA begins and remains in force until such times that the person becomes mentally unable to make sound decisions. For this reason, it’s important to clearly state what authority you give to the agent. It may be something specific, such as giving the agent the power to sign a deed of sale for a home while the person is overseas. This is called a limited power of attorney, and it’s fairly common. It’s the type of power that gives financial managers the authority to sell and buy investments on their client’s behalf.
A Springing Power of Attorney
This type of power of attorney comes into play when a certain event happens, for example, the person becomes incapacitated. The springing power of attorney needs to be carefully crafted so as to avoid any issues identifying exactly when the event happened.
A Durable Power of Attorney
A durable power of attorney comes into effect as soon as it is signed and remains that way unless the person cancels it. The wording should clearly specify the agent’s power will stay in effect even in the event of incapacitation.
The Law In Florida
When it comes to the requirements for financial power of attorney in the state of Florida, these are governed by the Florida Power of Attorney Act. Unlike other states, Florida doesn’t recognize the springing power of attorney and will not provide authorization for a financial power of attorney. This is why it’s more difficult to obtain a power of attorney in Florida compared to many other U.S. states.
Choosing An Agent
Under Florida law, an agent must either be at least 18 years old or a financial institution that holds trusted powers and is a place of business in the state. It should also be authorized to conduct a trust business in our state.
Your agent should always be someone that you trust to act in your best interest and who can make sound financial decisions on your behalf.
Power of Attorney and Divorce in Florida
Should you file for a petition for divorce, it will automatically terminate the authority of your spouse to act as your agent under your power of attorney. It’s immediate, so the divorce doesn’t have to be final as yet.
Consider Legal Assistance with Your POA
Florida has seen some significant changes to powers of attorney in recent times. If you’ve previously granted someone power of attorney or you wish to do so, it’s a good idea to consult with an experienced estate planning attorney to make sure you get it right under the latest laws.
It’s important to note that state laws can and do change often, so you should try to keep up to date with the power of attorney laws in Florida. An attorney will be able to give you up-to-date advice and help lay out your POA for your best interests.
Discuss your POA today. Book a consultation at Principal Law Firm for knowledgeable and friendly guidance.
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