Types of Powers of Attorney in Florida

Depending on individual requirements, the type of power of attorney created in Florida may vary. A general power of attorney grants broad authority to the agent for financial matters such as banking, real estate transactions, and government interactions. On the other hand, a limited or special power of attorney is used when specific authority is needed for a defined purpose and limited duration. A durable power of attorney ensures the agent's authority remains effective even after the principal's incapacity.

Capacity to Create a Power of Attorney in Florida

Before executing a power of attorney in Florida, it is essential to assess whether the principal or someone else has the capacity to do so. Capacity refers to understanding the document being executed and its implications. As long as the principal comprehends the effects of the power of attorney, they possess the capacity to execute it, even if they have sporadic lucidity due to conditions like dementia.

Execution Requirements of a Florida Power of Attorney

According to Section 709.2105 of the Florida Statutes, a Florida power of attorney must be signed by the principal in the physical presence of two witnesses and acknowledged by a notary. All parties involved in executing the power of attorney must sign in each other's presence, a requirement often overlooked.

Qualification of Agent for the Florida Power of Attorney

The agent appointed in a Florida power of attorney must be a natural person aged 18 or older, or a financial institution with trust powers, a place of business in the state, and authorization to conduct trust business there. It is crucial to designate a trustworthy agent since they will have full authority to act in the principal's best interests. While agents can be held liable for breaching their fiduciary duties, choosing an agent who understands the principal's intentions and communicates general goals and preferences regarding property administration is advisable.

Agent's Duties under the Florida Power of Attorney

The relationship between the principal and the agent is fiduciary in nature, meaning the agent must act within the scope of the authority granted in the power of attorney. The agent has a duty to act in good faith, avoiding actions contrary to the principal's best interests and communicated expectations. If the agent acts outside the power of attorney's scope or against the principal's best interests, they may be held liable for financial restitution and legal fees incurred.

Authority of the Agent under the Florida Power of Attorney

As stated in Section 709.2201 of the Florida Statutes, the agent possesses only the authority explicitly granted in the power of attorney. However, the agent cannot vote in public elections, execute or revoke a will, perform personal services on behalf of the principal, make personal knowledge affidavits, or exercise powers as a trustee or court-appointed fiduciary. Additional authority, such as creating trusts, amending or terminating trusts, making gifts, changing beneficiary designations, or disclaiming property and powers of appointment, must be separately initialed by the principal to grant the agent such powers.

Termination and Revocation of the Florida Power of Attorney

A Florida power of attorney terminates under various circumstances, including the principal's death, incapacity (if not durable), court-declared incapacitation, revocation by the principal, accomplishment of the document's purpose, or expiration of the agent's authority without a provision for another agent. Revoking a power of attorney requires creating a new written document expressly revoking the prior one. It is crucial to avoid creating a new power of attorney without explicitly revoking the previous one, as multiple agents may be authorized to act on the principal's behalf simultaneously.

Reasons to Use a Florida Power of Attorney

A Florida power of attorney offers several advantages, including:

1. Avoiding Guardianship Court Upon Incapacity: With a durable power of attorney and a designation of health care surrogate, the need for costly and complex guardianship proceedings can be avoided if the principal becomes incapacitated. Guardianship proceedings involve significant expenses and limit the principal's rights while requiring ongoing court oversight.

2. Assisting with Day-to-Day Activities: A power of attorney allows the agent to support the principal with various tasks, such as bill payments, government agency interactions, tax preparation, and business management. This assistance becomes particularly important as individuals age and require additional support.

3. Enabling Specific Transactions: A power of attorney is beneficial when granting an agent the authority to perform a specific transaction on behalf of the principal. For example, in real estate transactions, an agent can be designated to complete property closings or facilitate property sales when the principal is unavailable.

Contact Victoria Law Today

Understanding the intricacies of a Florida power of attorney is crucial for individuals looking to delegate authority to trusted agents. By comprehending the different types of powers of attorney, the qualifications for creating one, the agent's duties and authority, and the termination and revocation procedures, individuals can make informed decisions to protect their interests and ensure their wishes are respected. When it comes to your power of attorney needs, Victoria Law is here to offer her expertise and guidance. Contact Victoria Law to benefit from our comprehensive assistance with power of attorney matters.