Springing power of attorney

How it works

A springing power of attorney takes effect after its specified condition is met. In Michigan, practitioners describe a springing financial durable power as taking effect after a determination of legal incapacity. A non-springing power takes effect upon execution.

An agent may need to provide proof of incapacity before acting. Practitioner experience describes written certification from one or more physicians as common evidence. One example requires certification by two licensed physicians, and a family member cannot simply declare incapacity to a bank teller under that example.

Obtaining a physician's certification can take time. Estate planning practitioners describe an immediate power of attorney as allowing an agent to act without that delay.

Where it shows up for owners of businesses, real estate and private investments

A springing power of attorney sets when an agent may act on an owner's financial matters. Practitioners point to the springing feature as part of a durable power of attorney, not a separate legal instrument.

For an owner with business interests, real estate or private investments, the document's condition determines when the agent's authority begins. In Michigan, practitioners describe legal incapacity as the condition for a springing financial durable power of attorney to take effect.

Points that are easy to confuse

Trust and estate practitioners note that third parties sometimes treat springing powers as categorically different or more suspect, while the springing variant is not a separate instrument.

Incapacity and proof of incapacity are related but distinct. Practitioner experience describes evidence, often written physician certification, as something an agent may need to provide before acting.

Common questions