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Transcript:
A power of attorney becomes effective depending on the type of power of attorney it is. Okay. So there’s two types. The first one is a durable power of attorney and that is typically what we would create. A durable power of attorney is really effective at the time of the signature. So whenever it’s executed, it’s already effective and the person who is appointed as the agent can act at any time for that person. The second type of power of attorney is called a springing power of attorney.
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What that means is we have to have a triggering event to make sure that this person is actually disabled in order for the agent to start acting essentially. So what does that look like? A person has dementia and now this person really is unable to make, you know, good decisions. So now we got to go to the doctor, get a doctor’s note, say mom is unable to make decisions. Once we have that doctor’s note, now this power of attorney is effective. So sometimes people prefer that because they don’t want their kids to start
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handling their finances immediately. They want it to be only if they were disabled. Advantage of having a durable power of attorney is sometimes it’s not easy to get that doctor’s note. So that’s why a lot of people prefer that durable power of attorney. But either way, you definitely want to have one. If you ever have a incapacity situation, you want somebody appointed that you appointed to act on your behalf for your finances and for your healthcare decisions.
