A Power of Attorney, or POA, is a legal document that lets you choose someone to act on your behalf if you’re unable to do so. It’s an important part of estate planning and helps you manage your affairs if something happens.
But just how long does a POA last? Many people assume a POA is valid indefinitely, but that’s not always true. So, does a POA expire?
This article will cover the different types of POAs, the circumstances that cause a POA to expire, and how you can revoke a POA if needed.
Types of Power of Attorney and Their Durations
A power of attorney (POA) is a legal document that gives someone else the power to act on your behalf. There are different types of POAs, and each has its own rules about when it expires.
General Power of Attorney
A general power of attorney gives your agent very broad powers to act for you. It usually lasts until you cancel it, or until you die or become incapacitated.
Limited Power of Attorney
A limited power of attorney only gives your agent the power to act for you in specific situations or for a certain period of time. It often expires when the task is done or when a certain date arrives.
Durable Power of Attorney
A durable power of attorney stays in effect even if you become incapacitated. The “durable” designation is important, because without it, the POA usually ends if you become incapacitated and can no longer make decisions for yourself.
How long does a power of attorney last?
A power of attorney (POA) typically stays in effect until either the principal revokes it or the principal dies. However, there are exceptions.
- Expiration dates: A POA can include a specific expiration date. This is more common in limited POAs, which are created for a specific purpose and length of time.
- Triggering events: Some events can automatically end a POA. For example, a POA created to sell a specific property will likely end when the sale is complete.
Keep in mind that POA laws vary by state. If you have questions about the POAs in your state, you should speak with a qualified legal professional.
When does a power of attorney become invalid?
A power of attorney doesn’t last forever. Here are some of the events that can render a POA null and void:
- Revocation by the principal. As long as they’re of sound mind, the principal can revoke the POA at any time. To do so, they’ll need to provide written notification to the agent and any third parties involved in the agreement.
- Incapacity of the principal. If the POA is a nondurable one, it automatically ends if the principal becomes incapacitated and can no longer make their own decisions.
- Death of the principal. A POA always ends when the principal dies.
- Incapacity or death of the agent. If the agent becomes incapacitated or dies, the POA is no longer valid.
- Legal ineligibility of the agent. If the agent experiences bankruptcy, is convicted of a crime, or loses a professional license that’s needed to fulfill the duties of the POA, the agreement becomes invalid.
How to make sure your power of attorney works
The most important element is clear and specific language. Ambiguity can lead to challenges to the POA’s validity, so make sure the document is precise.
You also need to select a trustworthy and competent agent. This person should be reliable, responsible, and capable of managing your affairs. Think carefully about who you select.
Name an alternate agent, too. If your primary agent can’t or won’t act, the alternate can step in.
Finally, POAs aren’t a “set it and forget it” situation. Review it regularly. Circumstances change, relationships shift, and assets evolve. Your POA should reflect all of that.
Closing Thoughts
Whether a power of attorney expires depends on a number of factors, including the type of POA it is, whether it has a specified expiration date, and whether it’s been revoked. It also ends automatically upon the death or incapacitation of the principal.
To make sure your POA meets your needs and complies with the laws in your state, talk with a qualified attorney. A lawyer can help you create a durable power of attorney and incorporate it into a comprehensive estate plan that protects your future and anticipates your needs.