Durable Power Of Attorney Florida Explained

It’s never too early to create an estate plan. While you may assume it’s useful only for dividing your assets after death, a solid estate plan can help you in circumstances where you are unable to handle your affairs on your own. 

One of the most important documents used for such a purpose is a power of attorney. It allows you (the principal) to grant legal authority to another individual (the agent) to act on your behalf when the conditions outlined in the agreement are met. 

There are various types of power of attorney, but today we’ll focus on clarifying what is durable power of attorney Florida.

What Is A Durable Power Of Attorney?

A durable power of attorney is a legal document that goes into effect when the principal is incapacitated and can no longer make their own decisions. The agent for a durable power of attorney Florida has the authority to handle the principal’s personal or financial affairs until the principal cancels the document or passes away. 

This legal arrangement typically applies to the current assets owned by the principal and any assets acquired after the effective date. 

Who Can Create A Durable Power Of Attorney?

According to Florida laws, any individual over 18 years of age can create a durable power of attorney as long as they have the mental capacity to do so. Legally, this refers to understanding how the document works and how much authority it provides to the agent. 

So if a person doesn’t have the requisite mental capacity, even if they create a durable power of attorney, they won’t be able to execute it. 

Legal Scope Of Durable Power Of Attorney

If properly executed, durable power of attorney can be used to grant an agent with a broad scope of legal authority, which may include:

• Signing legal documents on behalf of the principal
• Selling, purchasing, or investing property 
• Handling bank accounts
• Borrowing assets against the estate
• Designating beneficiaries 
• Handling annuity and retirement plan benefits
• Applying for governmental benefits
• Making choices regarding long-term care
• Arranging end-of-life care

It’s worth noting you have the legal right to limit the agent’s power in your durable power of attorney Florida documents.

Statutory Limitations On Durable Power Of Attorney

Per Florida Statutes, an agent of durable power of attorney is prohibited from:

• Performing contractual obligations that require the principal to execute the services
• Making affidavits to contracts without the principal’s knowledge
• Voting in public elections on the principal’s behalf
• Executing and revoking wills on the principal’s behalf
• Exercising powers granted to the principal as a court-appointed fiduciary or a trustee

Moreover, an agent is prohibited from using their legal authority to mishandle, mismanage, or misappropriate the property in the principal’s name. Depending on the circumstances, this can be considered a criminal offense. 

Benefits Of Durable Power Of Attorney 

So, why leverage durable power of attorney Florida for your estate plan?

Here are some of the key reasons:

• Affordability

Establishing a durable power of attorney is inexpensive and relatively straightforward. It also helps you save money in the future as your family can avoid the complicated and expensive process of establishing a conservatorship if you end up incapacitated. 

• Provides You Peace Of Mind

By creating a power of attorney, you can decide beforehand who will make decisions for you in the event of incapacitation without transferring any exclusive right. Equally important is the ability to decide on how much control you’re giving to an agent. In other words, you get to decide how specific the power of attorney is. 

• Ability To Hold The Agent Accountable

While a basic power of attorney document doesn’t require the agent to be held accountable, you can implement terms that require the agent to account for all their transactions and keep a record of receipts. 

Main Power Of Attorney Concerns

Although overall useful, there are a few noteworthy disadvantages of this legal instrument, including:

• No Court Involvement

Since there is no court oversight over a power of attorney agent, you have limited options in safeguarding yourself from abuse. 

• Terminated When You Pass Away

Power of attorney automatically expires after you die, which means you’ll also have to create a last will or a trust to protect your assets post-mortem.

• Not Always Enforceable

Some financial institutions may not honor a durable power of attorney. They may require additional forms before cooperating with the agent, while others may only do so if the document was created in the last six months. 

Who Should You Appoint As Your Agent?

Due to minimal court oversight, it’s critical you choose an agent you trust enough to fairly carry out your wishes if you’re incapacitated. While many people will gracefully accept this duty, some may take advantage of you for their own gain. 

This is especially true for people dealing with serious financial issues or addictions. They may see your assets as their way out of a particular situation. Close family members aren’t exempt from this either.

Fortunately, you always have the right to revoke the power of attorney in writing. In addition, you can structure the documentation in such a way as to ensure the agent is kept liable. Thus, it’s recommended that you hire an experienced estate planning attorney to set up an effective power of attorney. 

Appoint A Power Of Attorney At The Law Offices Of Mary E. King

A power of attorney Florida is only as safe as you make it. No court oversight means an agent can abuse their legal power for personal gain. Even though you’re planning on appointing a trusted family member, it’s still beneficial to implement “fail safes” and terms that limit their power and hold them accountable. 

By reaching out to Law Offices of Mary E. King, you can get affordable, yet outstanding legal services and create an estate plan that accurately reflects your future needs. Along with appointing a power of attorney, we can also set up other legal documents that protect your and your family’s interests in life and death.

Schedule an appointment by calling 941-906-7585 or filling out our contact form.

FAQs

1. Can a Durable Power of Attorney be used after the principal's death?

No, a Durable Power of Attorney ceases upon the principal's death. At that point, the executor or personal representative named in the will takes over.

2. Can I create my own Durable Power of Attorney without legal help?

While it's possible to create a Durable Power of Attorney without an attorney, consulting with a legal professional ensures compliance with Florida law and addresses specific concerns.

3. Can I appoint more than one agent in a Durable Power of Attorney?

Yes, you can appoint multiple agents, but it's important to specify whether they can act jointly or independently.

4. How long does a Durable Power of Attorney remain valid?

A Durable Power of Attorney remains valid until revoked by the principal, or until a specified termination date, if any.

5. What happens if there is a disagreement between family members regarding the Durable Power of Attorney?

Disagreements can be resolved through legal mediation or, if necessary, through court intervention.