Why Has Florida Banned “Springing” Powers of Attorney?

If you have been researching estate planning options in Boca Raton, you may be interested in a power of attorney (POA). In Florida, only certain types of POAs are allowed, and “springing” variants are prohibited. What exactly is a springing power of attorney, and why has Florida banned this option? This may be a conversation worth having with an experienced estate planning attorney.

What Are Springing Powers of Attorney?

In order to understand some of the concerns around springing powers of attorney, you first need to gain a clear idea of how this estate planning tool works. A springing power of attorney only goes into effect after you become incapacitated. Suppose you create a springing power of attorney two years before falling into a coma.

The moment a doctor decides that you are mentally incapacitated, the POA would “spring” into action and give your designated agent the power to make legal or financial decisions on your behalf. This might involve selling your family home or liquidating stocks to pay for your treatment.

In contrast, general and “durable” POAs go into effect from the moment you sign them. A general power of attorney ceases to be enforceable when you become incapacitated. On the other hand, a durable power of attorney remains in effect even after your incapacitation.

Why Did Florida Ban Springing Powers of Attorney?

Springing powers of attorney have the potential to cause issues during emergency situations. In theory, a springing POA could cause problematic delays as doctors attempt to confirm or agree that you are, in fact, incapacitated. These delays can cause problems not only with medical treatment, but also with financial decisions. In both situations, fast action is often critical.

Situations like these are particularly challenging when incapacitation occurs gradually. Instead of falling into a coma after a car accident, you might slowly develop dementia. In this situation, your incapacitation could be somewhat subjective, and different healthcare professionals might come to different conclusions about your mental state.

This “gray area” may prevent a designated agent from paying bills and carrying out other important financial tasks. These delays and mixed medical opinions may eventually lead to serious financial issues as bills go unpaid, for example.

Do Other States Allow Springing Powers of Attorney?

Most states allow springing powers of attorney, and Florida is part of a relatively small group of jurisdictions that have banned this estate planning tool. Only two other states have similar prohibitions. All other jurisdictions allow springing POAs.

Are There Any Exceptions?

You may be able to create a valid springing POA if you utilize an escrow arrangement. However, this strategy is relatively complex, and you may want to discuss it with an experienced attorney.

Can an Estate Planning Lawyer in Boca Raton Help Me?

Although springing powers of attorney may be out of the question in Florida, many other similar options can help achieve the same basic goals. If you would like to learn more about these options, consider contacting an experienced Boca Raton estate planning attorney. Reach out to 411 Probate at 954-888-1747 today.

Source:

floridabar.org/public/consumer/pamphlet13/