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Springing Durable Power of Attorney(click here for information)
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$45.00- Durable Power for husband and wife
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(1.) Durable Power of Attorney.A power of attorney is an agency agreement. The donee of
the power(the person to whom the power is given) acts as an agent for the donor (the giver of
the power), to be able to do things which the donor has permitted in the power. Under the
common law, a power of attorney became void if the donor was declared an incompetant, legally a
non-person. It is only over the last ten years in New Jersey that it is now permissable to create a
power of attorney which permits the donee to retain his powers even if the donor becomes
physically disabled or a mental incompetant. This is called a durable power of attorney, in effect a
super power. A durable power of attorney is important in the event that a spouse becomes mentally
or physically disabled. Notwithstanding the disability, the donee can continue to do banking,
leasing, buying and selling real estate even if the donor never recovers. Prior to this change in NJ
law, it was necessary for the spouse to obtain a court order, which was time consuming and
expensive, to carry out these acts.
(2.)Limited and Genral Powers of Attorney. There are two types of powers of attorney: (1) a limited power where the donee is limited to one or more specific acts(e.g. a limited power to sign a deed and all documents necessary to sell a house) and (2) a general power where the donee has power to do all legal acts which the donor could do. In New Jersey since 1994, specific reference to the NJ Statute enumerating "banking powers" should be made since some banks in NJ will not honor the power without this clause. The power of attorney provided to you contains such a "banking clause". The power of attorney prepared as part of your document package is a general power of attorney. Since its powers are all encompassing, itshould only be given to a donee whom you can trust such as your spouse or other family member.
(3.) Revocation of Power of Attorney. Again, a power of attorney can be a dangerous document if the donee decides to breach the trust conveyed. A power of attorney can only be revoked by sending notice to all who might rely on the power. If such revocation is not delivered, the donor can be bound by the donee's actions even if contrary to the donor's wishes and best interests. For this reason, it is also advisable to put a termination date in a power of attorney so that it self-destructs after the desired period of time.
(4.) Springing Power of Attorney. A general power of attorney can either be a "full power" or a "springing power". The full power remains in full force and effect whether the donor is competant or incomptetant. The "springing power" only comes to life or springs forth when the donor becomes mentally or physically disabled. The "springing power" seems to defeat the purpose of the law in requiring some determination that the donor is now mentally or physically disabled. Rather than face a judicial determination on this issue, the springing power used here provides that a letter from the donor's power of attorney will satisfy the proof requirements as to the donor's physical or mental disability.
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