Which statement concerning a power of attorney is correct?

Which statement concerning a power of attorney is correct?

• A. A power of attorney that becomes effective the moment the document is signed by the principal is called a springing power of attorney.
• B. If the attorney-in-fact is a lawyer, they may be granted the power under the document to write a will for a principal who becomes incompetent.
• C. Once a principal becomes incompetent, the actions of an attorney-in-fact on behalf of the principal become a matter of public record.
• D. A durable power of attorney ceases to be effective at the time of the principal's death.

Answer: (D)

A durable power of attorney is designed to stay in effect if the principal becomes incapacitated and it ends at the principal’s death. The idea that a springing power becomes effective immediately upon signing is incorrect because a springing power only activates when a specified condition occurs, not just at signing. Having a lawyer act as attorney-in-fact to write a will for an incompetent principal isn’t permitted; drafting or altering a will isn’t within the typical scope of a power of attorney. The notion that the actions of an attorney-in-fact become public record once incapacity arises isn’t generally true, as many POA activities remain private unless specific filings or court actions require disclosure. Therefore, the statement that a durable power of attorney ceases to be effective at the principal’s death is correct.

A durable power of attorney is designed to stay in effect if the principal becomes incapacitated and it ends at the principal’s death. The idea that a springing power becomes effective immediately upon signing is incorrect because a springing power only activates when a specified condition occurs, not just at signing. Having a lawyer act as attorney-in-fact to write a will for an incompetent principal isn’t permitted; drafting or altering a will isn’t within the typical scope of a power of attorney. The notion that the actions of an attorney-in-fact become public record once incapacity arises isn’t generally true, as many POA activities remain private unless specific filings or court actions require disclosure. Therefore, the statement that a durable power of attorney ceases to be effective at the principal’s death is correct.