A legal document granting authority to another individual to act on one’s behalf generally remains valid until a specific event or date. The circumstances dictating the termination of this authority vary based on the type of document and jurisdiction. For instance, if the principal becomes incapacitated and the document is not durable, the authority may immediately cease. An example of such a scenario involves a principal diagnosed with advanced Alzheimer’s disease; in the absence of durability provisions, the agent’s ability to manage the principal’s finances would be compromised.
Understanding the conditions that lead to the cessation of granted authority is critical for effective estate planning and ensuring that one’s affairs are managed according to their wishes, even during periods of incapacity. Historically, these documents were often limited in scope and duration. Modern legislation has evolved to accommodate various needs, including the ability to create durable documents that remain effective despite the principal’s incapacity. This evolution helps protect vulnerable individuals and allows for smoother transitions in managing personal and financial affairs.