When Does My Agent's Authority Stop?

When Does My Agent's Authority Stop?

Your agent’s authority under your power of attorney stops when your power of attorney is terminated.  Your power of attorney should specify when it or your agent’s authority is terminated.  Even then, you can terminate your agent’s authority by revoking your power of attorney at any time for any or no reason.  This is usually done by you writing your agent.

Your agent’s authority also stops if your agent resigns.  Your agent can resign at any time for any or no reason.  Unless your power of attorney requires a different way of resigning, this is done by your agent notifying you, preferably in writing, that (s)he has resigned.  If you are incapacitated, the notice may be given to your conservator, guardian, co-agent or successor agent.  If none of those exist, the notice may be given to your care giver or another person your agent believes has sufficient interest in your welfare or a government agency with authority to protect your welfare.

Your power of attorney and your agent’s authority automatically terminates when you die.

The former law in most States was that unless your power of attorney specifically provided otherwise, your power of attorney and your agent’s authority terminated if you became incapacitated.  Under the Uniform Power of Attorney Act, it is just the opposite.  Now, unless your power of attorney specifically provides otherwise, your agent’s authority does not terminate when you become incapacitated.  If your power of attorney does not terminate when you become incapacitated, is called a durable power of attorney.  It is important for you to give a durable power of attorney, and a durable health care power of attorney, to someone so that person can handle your affairs if you are no longer able to do so because of an accident, illness or disability.

If your power of attorney specifically provides that it terminates and your agent’s authority ends when you become incapacitated, the termination is not effective unless your agent, or the person dealing with your agent in good faith, has actual knowledge of your incapacity.

Your power of attorney can provide that it your agent’s authority stops when a specific event happens.  For example, your power of attorney could provide that your agent’s authority ends when you return to the United States.

If your power of attorney is given for a specific purpose, unless it provides otherwise, your agent’s authority ends when that purpose is accomplished.  For example, if you give a power of attorney to sell a specific car, your agent’s authority ends when the car is sold.

Your power of attorney also terminates if all your agents named in the power of attorney die, resign or become incapacitated.  That is the reason your power of attorney should name one or more successor agents.

Unless your power of attorney provides otherwise, it terminates and your agent’s authority ends if you and your agent divorce, have your marriage annulled or legally separate.

Signing a power of attorney does not automatically terminate revoke your prior powers of attorney or end your other agent’s authority unless the new power of attorney provides that all or specific powers of attorney you have given are revoked.

Unless a judge limits, suspends or terminates your agent's authority, your power of attorney and your agent’s authority remain in effect even after the judge appoints a guardian or conservator for you.  Your agent owes your guardian and conservator the same duties that your agent owes to you.

Your agent must immediately stop acting for you when (s)he learns that your power of attorney has been terminated.

It is important for you to let anyone dealing with your agent, like your bank, know that your agent has resigned, his or her authority has ended, or your power of attorney has been terminated.  Otherwise, you remain bound by your agent's dealings with persons or entities that do not know that your agent has resigned, his or her authority has ended, or your power of attorney has been terminated.

Thomas T. Tornow has 33 years of experience helping people with their powers of attorney.  Contact his office at www.tornowlaw.com to schedule your free consultation.

Thomas T. Tornow, P.C.

By: Thomas T. Tornow

This post is exclusively for informational purposes. It is not legal advice. Viewing this post, using information from it, or communicating through this blog does not create an attorney-client relationship. Thomas T. Tornow, P.C. is not liable for the use or interpretation of information on this blog and expressly disclaims all liability for any actions you may or may not take based on the content of this blog.