Legal Definitions - springing power of attorney

A springing power of attorney is a legal document that grants one person (the "agent" or "attorney-in-fact") the authority to act on behalf of another person (the "principal"), but this authority only becomes effective upon the occurrence of a specific future event or condition. Unlike a standard power of attorney that is effective immediately upon signing, a springing power of attorney "springs" into action only when the predefined trigger event takes place.

This type of power of attorney is often used to ensure that an agent only gains authority if the principal becomes incapacitated or is otherwise unable to manage their own affairs, providing a safeguard against immediate loss of control while ensuring a plan is in place for future needs.

• Example 1: Financial Management During Incapacity

  A retired individual, Sarah, creates a springing power of attorney for financial matters, naming her daughter, Emily, as her agent. The document specifies that Emily's authority to manage Sarah's bank accounts, pay bills, and make investment decisions will only become effective if two licensed physicians certify in writing that Sarah is no longer capable of making her own financial decisions due to cognitive impairment. If Sarah remains healthy and competent, Emily has no authority. However, if Sarah were to develop advanced dementia and the physicians provide the required certification, the power of attorney would then "spring" into effect, allowing Emily to manage Sarah's finances.

  This example illustrates a springing power of attorney because Emily's authority is not immediate but is contingent upon a specific future event: Sarah's certified incapacity, as determined by medical professionals.

• Example 2: Healthcare Decisions After an Accident

  John, an adventurous traveler, executes a springing power of attorney for healthcare decisions, designating his brother, Mark, as his agent. The document states that Mark can only make medical decisions for John if John is deemed unconscious or otherwise unable to communicate his wishes by his attending physician. If John is conscious and able to express his preferences, Mark has no say in his medical care. However, if John were to suffer a severe accident that leaves him in a coma, the power of attorney would "spring" into effect, empowering Mark to make critical healthcare choices on John's behalf.

  This demonstrates a springing power of attorney because Mark's ability to act as John's healthcare agent is activated only by the specific condition of John's inability to communicate his medical wishes, as certified by a doctor.

• Example 3: Business Operations During Extended Absence

  Maria, the sole proprietor of a small consulting firm, prepares a springing power of attorney appointing her trusted office manager, David, as her agent. The document stipulates that David can access business accounts, sign contracts, and manage payroll only if Maria is out of the country for more than 30 consecutive days or is hospitalized for an extended period. If Maria is present and healthy, David has no such authority. Should Maria embark on an unexpected, prolonged international project or require a lengthy hospital stay, the power of attorney would "spring" into effect, allowing David to keep the business running smoothly in her absence.

  This example highlights a springing power of attorney because David's authority over Maria's business is conditional, becoming active only upon Maria's prolonged absence or hospitalization, which are the specified trigger events.