CEA CEA Powers of Attorney & Advance Directives 1

Question 1

A 'durable' power of attorney differs from a standard power of attorney in that it:

Accepted Answer

Remains effective if the principal becomes incapacitated

Answer

A durable power of attorney includes specific language stating that it survives or becomes effective upon the principal's incapacity, unlike a standard POA which terminates at incapacity.

Question 2

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

Accepted Answer

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

Answer

A springing POA 'springs' into effect upon a defined condition, most commonly when a physician certifies the principal's incapacity.

Question 3

Which document allows a person to name someone to make healthcare decisions on their behalf if they are unable to do so?

Accepted Answer

Healthcare proxy / healthcare power of attorney

Answer

A healthcare proxy (or healthcare power of attorney) designates an agent to make medical decisions for the principal when the principal lacks capacity.

Question 4

What is the primary purpose of a living will (advance directive)?

Accepted Answer

To document the principal's wishes regarding life-sustaining treatment

Answer

A living will records the individual's instructions about medical treatments, particularly life-sustaining measures, in the event they cannot communicate their wishes.

Question 5

Which type of power of attorney is typically used for a specific transaction and terminates once that transaction is complete?

Accepted Answer

Limited (special) power of attorney

Answer

A limited or special POA grants authority only for a specific act or transaction, such as closing a real estate sale, and automatically expires when that act is completed.

(CEA) Certified Estate Advisor Practice Test

(CEA) Certified Estate Advisor Practice Test

CEA CEA Powers of Attorney & Advance Directives 1