When does "contingent authority" in a Power of Attorney typically begin?

When does "contingent authority" in a Power of Attorney typically begin?

• A. Signing of document
• B. Agreement of joint attorneys
• C. Declaration of incapacity of grantor
• D. Declaration of the court

Answer: (C)

The concept of "contingent authority" in a Power of Attorney refers to circumstances under which the authority granted to an agent becomes effective. Typically, this authority is designed to be activated only when certain conditions are met, with the most common condition being the declaration of incapacity of the grantor. In this context, contingent authority ensures that the designated agent can only act on behalf of the grantor when the grantor is unable to make decisions due to a lack of mental capacity or other incapacitating conditions. This arrangement protects the grantor’s interests, ensuring that the agent cannot make decisions until it is absolutely necessary. The other choices refer to different aspects of the Power of Attorney. The signing of the document signifies the initiation of the authority but does not activate contingent authority until the specified condition occurs. Agreement of joint attorneys relates to situations where multiple agents are designated but does not define when their authority kicks in. Finally, a declaration of the court might be necessary in some cases, but it does not specifically address the standard operational beginning of contingent authority in most general practices.

The concept of "contingent authority" in a Power of Attorney refers to circumstances under which the authority granted to an agent becomes effective. Typically, this authority is designed to be activated only when certain conditions are met, with the most common condition being the declaration of incapacity of the grantor.

In this context, contingent authority ensures that the designated agent can only act on behalf of the grantor when the grantor is unable to make decisions due to a lack of mental capacity or other incapacitating conditions. This arrangement protects the grantor’s interests, ensuring that the agent cannot make decisions until it is absolutely necessary.

The other choices refer to different aspects of the Power of Attorney. The signing of the document signifies the initiation of the authority but does not activate contingent authority until the specified condition occurs. Agreement of joint attorneys relates to situations where multiple agents are designated but does not define when their authority kicks in. Finally, a declaration of the court might be necessary in some cases, but it does not specifically address the standard operational beginning of contingent authority in most general practices.