Attorney Power Of Attorney 2

Question 1

A durable power of attorney differs from a standard power of attorney primarily because it:

Accepted Answer

Remains effective if the principal becomes incapacitated

Answer

A durable POA contains language specifying that it survives the principal's incapacity, unlike a standard POA which terminates upon incapacity.

Question 2

Which of the following events automatically terminates a power of attorney in most U.S. jurisdictions?

Accepted Answer

The death of the principal

Answer

Death of the principal automatically terminates any power of attorney because the agent's authority derives solely from the living principal.

Question 3

A 'springing' power of attorney becomes effective only when:

Accepted Answer

A specified triggering event occurs, such as the principal's incapacity

Answer

A springing POA lies dormant and activates only upon occurrence of a defined condition, most commonly the principal's mental or physical incapacity.

Question 4

Under the Uniform Power of Attorney Act (UPOAA), an agent's authority to make gifts on behalf of the principal requires:

Accepted Answer

Express authorization in the POA document

Answer

Under the UPOAA, gifting authority is not implied and must be expressly granted in the POA document to prevent potential abuse.

Question 5

An agent acting under a power of attorney owes the principal which standard of care?

Accepted Answer

A fiduciary duty

Answer

Agents acting under a POA owe a fiduciary duty to the principal, requiring loyalty, good faith, and acting in the principal's best interest.

Attorney Practice Test