How Long is a Power of Attorney Valid?

A power of attorney is a document in which a person (the "principal") states that another person (the "attorney-in-fact" or "agent") has the legal authority to make decisions or act on the principal's behalf with respect to certain financial matters or health care decisions. There are four types of power of attorneys, and the validity of each one can endure for different lengths of time.

General Power of Attorney

A general power of attorney is an agreement in which the principal gives the agent the legal right to conduct a broad range of the principal's financial affairs. In this case, the agent may be authorized to cash checks, withdraw money from a bank account to pay the principal's bills, sell stocks or property or pursue legal actions. A person may want to put in place this kind of document if he or she is going to be hospitalized for a long period of time, undergoing medical treatment, traveling in a foreign country or simply no longer wants to handle his or her financial affairs. A general power of attorney is valid as long as the principal is alive, mentally competent and has not revoked the power of attorney.

Limited Power of Attorney

A limited power of attorney is similar to a general power of attorney, except that the agent is authorized to act on behalf of the principal only with respect to specific transactions for a clearly defined length of time. For example, a principal could draft a limited power of attorney such that an agent would be authorized write checks to pay bills on the principal's behalf while the principal was abroad or in the hospital. Once the specified period ended or the principal returned home, the agent's power would end. The agreement would also be invalidated if the principal became mentally incapacitated or died, even if it occurred before the specified period came to an end.

Durable Power of Attorney

A durable power of attorney can be either limited or general, but it remains in place even if the principal becomes mentally incapacitated. It is no longer valid, however, when the principal dies. It can also be revoked by court order or by the principal, if the principal is considered to have regained his or her mental competence.

Springing Power of Attorney

Most power of attorneys become valid upon executing the agreement. However, a springing power of attorney activates only upon the occurrence of a certain event. For example, a principal may want an agent to conduct his or her financial affairs only in the event that the principal becomes physically or mentally disabled. The principal can set up a springing power of attorney to ensure that the agent will be able to act if and only if such a disability comes to pass. The agreement is thus valid from the springing event until the principal's death.

Medical Power of Attorney

A medical power of attorney is a subset of a springing power of attorney. It grants an agent the power to make medical decisions on behalf of the principal in the event he or she becomes mentally incompetent. It is valid until the principal's death, a time specified in the agreement or until the principal regains mental competence.