Trigger

  • By 7016324482
  • 22 Aug, 2017

No…not Roy Roger’s horse. A trigger is a mechanism or an event that initiates another event or series of events, generally more significant. A specific event can initiate or trigger the powers in a certain type of Power of Attorney (“POA”).

 A POA is a document wherein a person, or “Principal,” designates specific authority to an agent to perform responsibilities on behalf of the Principal. The powers granted can be general or very specific. The better drafted POA specifies in detail the duties of the agent. An agent must use the powers granted in the POA and the Principal’s assets for and on behalf of the Principal and not for the benefit of the agent. The Agent has a fiduciary duty, a legal obligation, to protect the Principal.

 There are two ways for a POA to give powers to an agent. In one, the POA becomes effective immediately upon the Principal signing the document. The other is sometimes called a “Springing Power of Attorney” and empowers the agent to act only after the Principal becomes incompetent as defined by the document. To establish incompetency of the Principal, the POA usually requires an examination and certificate of one or two physicians. This certificate triggers, or springs, the powers of the agent.

 The decision to empower the agent upon execution of the document or to delay the trigger until the Principal is declared incompetent depends upon the condition of the Principal at the time the POA is signed. A person in poor health should allow the powers to be effective immediately. Those who are healthy should sign a POA for protection, if needed, to start at a later date and triggered by incompetence.

 A Durable Power of Attorney is one that continues the power of the agent on behalf of the Principal during the period of incapacity and/or disappearance. A POA terminates upon the death of the Principal.


 “Happy trails to you till we meet again.”

 

Richard Young


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