A “springing” Power of Attorney becomes effective only upon the occurrence of a specified event — usually a physician’s determination that the principal is incapacitated — while an immediately effective Power of Attorney grants authority to the agent as soon as the document is signed. The advantage of a springing Power of Attorney is psychological comfort and added protection against misuse, since the agent has no authority unless incapacity is established; however, the downside is delay and practical difficulty, as banks and financial institutions may hesitate to rely on it or require burdensome proof of incapacity at the very moment quick action is needed. An immediately effective Power of Attorney, on the other hand, allows seamless assistance with financial, legal, or property matters, which is helpful for convenience, travel, or gradual cognitive decline, but it requires a high level of trust because the agent’s authority exists right away. Choosing between the two involves balancing control and protection against efficiency and ease of use, and careful drafting can add safeguards — such as accounting requirements or limits on gifting — to either approach.
If you have questions about Powers of Attorney or any other aspect of estate planning, give us a call at 253.858.5434 to make an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.