CEA Powers of Attorney & Advance Directives Flashcards

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

Answer: Remains effective if the principal becomes incapacitated

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.

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

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

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

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

Answer: Healthcare proxy / healthcare power of attorney

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

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

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

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

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

Answer: Limited (special) power of attorney

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.

An agent under a financial power of attorney has which primary fiduciary duty?

Answer: To act in the best interest of the principal

An agent under a POA is a fiduciary who must act solely in the principal's best interest and cannot benefit personally from their position unless the POA explicitly permits it.