Some powers of attorney can be terminated and some cannot. Some terminate on their own. The answer depends on what type of power of attorney you executed. A power of attorney in Fayetteville Arkansas is a legal document that authorizes someone, known as the agent, to act on your behalf. You can authorize your agent to do many different things on your behalf, including signing checks, entering into contracts, buying or selling property and making business decisions. A power of attorney is usually executed for a specific purpose and, therefore, limits your agent to acting within that stated purpose. A regular power of attorney ends at your death.
A durable power of attorney remains in effect even after you have become incapacitated. In Arkansas, a power of attorney created after the passage of the Uniform Power of Attorney Act, is durable unless it expressly provides that it be terminated by incapacity. With a durable power of attorney, the agent’s authority will continue until your death unless you decide otherwise. A durable power of attorney must end when you die because it does not authorize your agent to handle your affairs after your death. Instead, those needs are usually addressed by a will or living trust.
Certain events will terminate a durable power of attorney by law.
If the agent or principal dies, or the sole agent resigns, then the durable power of attorney will terminate. A court can find a power of attorney to be invalid and revoke the instrument if there is evidence that you were not actually competent when it was signed or that you were under undue influence or defrauded into signing the document. In some states, including Arkansas, the authority of an agent under a durable power of attorney automatically terminates upon the filing of an action for divorce or annulment if the ex-spouse was the attorney-in-fact.
What are some reasons I would you want to revoke a Power of Attorney?
There may come a time when you feel you may need to revoke your power of attorney. For instance, if the circumstances have changed and it is no longer necessary for someone to act on your behalf, you may decide a power of attorney is not required. If for some reason you no longer trust the person you named as your attorney in fact or there is someone more suitable for the task, you may decide to terminate the existing power of attorney and execute a new one. Another common reason is that the specific purpose of the power of attorney has been fulfilled.
What do I need to do to revoke my Power of Attorney?
Any revocation of a legal document should be in writing and notarized so there will be no dispute as to its validity. No magic language is required. The revocation needs to include your name, the statement that you are of “sound mind,” and that you wish to revoke the existing power of attorney. The revocation can include the date of execution of the original power of attorney and identify the agent that was chosen.
Under Arkansas law, the revocation does not become effective until the attorney-in-fact receives notice. So, you cannot “secretly” revoke a power of attorney. It is also a good practice to notify all financial institutions and other businesses with which your attorney-in-fact dealt on your behalf that the power of attorney has been revoked.
- Estate Planning is Essential Whether You Are Married or Not - April 25, 2018
- Income Tax Basis in Estate Planning – Part 2 - April 23, 2018
- The Downsizing Generation: How to Handle a Surplus of Stuff When a Loved One Ages - April 18, 2018