Writing a power of attorney is an important part of your estate plan. This ensures that you have appointed a chosen and trusted agent to step in and manage your affairs on your behalf if you’re unable to do so.
There are many different terms that can be used in relation to a power of attorney and one of these is known as springing agency. When someone’s agency and ability to act under a power of attorney is conditioned on the incapacity of the principal or another triggering event, this may be known as springing agency, because it only allows this agent to start acting when that triggering event occurs. Make sure that your state recognizes springing agencies since not every location in the United States does. Springing powers of attorney do have some benefits, but they can also have some potential downsides.
For example, they can create uncertainty and confusion among your family members as well as unnecessary delays. It is likely that you do not want your agent to have to go through any additional obstacles or jump through hoops at a critical time of need. There are also some issues with financial institutions accepting springing powers of attorney because they may ask for additional proof about whether or not the triggering event has indeed occurred.
Make sure you work with a qualified estate planning professional to discuss the basics of your estate plan and to determine whether or not a springing agency is best suited to your POA.