When creating a Power of Attorney, users often conflate when a document starts working with how long it lasts. In the Wealth.com platform, these are two distinct legal concepts.
What is "Durability"?
The term Durable refers exclusively to the lifespan of the document.
A Durable POA: Stays in effect even if the principal (the person who signed it) becomes mentally incapacitated.
A Non-Durable POA: Automatically terminates the moment the principal loses capacity.
[!IMPORTANT]: All Financial Powers of Attorney generated on our platform are Durable. This ensures that your chosen agent can continue to manage your finances at the exact moment you are unable to do so yourself.
What is "Effectiveness"?
Effectiveness refers to the start date of the agent's power. This is independent of durability.
Immediate: The agent has the authority to act as soon as the document is signed and notarized.
Springing (Upon Incapacity): The agent has no authority until a specific event occurs—typically a written certification from a physician stating the principal is incapacitated.
Key Distinctions
It is a common misconception that a "Durable" Power of Attorney is one that "springs" into action only upon disability. This is incorrect.
Feature | Durable | Immediate | Springing |
What it governs | Does it survive incapacity? | When does it start? | When does it start? |
The Trigger | Signature (but persists through illness) | Signing/Notarization | Physician Certification |
Our Default | Yes | Varies by State | Varies by State |
State-Specific Nuances
While our platform defaults to making these documents durable, the Effectiveness (Immediate vs. Springing) is often dictated by state law.
[!TIP]
The Bottom Line: If a client asks for a "Durable" power of attorney because they only want it to work when they are sick, clarify that "Durable" means it survives the sickness, while "Springing" means it waits for the sickness to begin.