Which statement about a durable power of attorney is true?

Which statement about a durable power of attorney is true?

• A. It remains in effect during the principal's disability
• B. It only becomes effective upon incapacity
• C. It appoints a health-care agent
• D. It sets flat fees for services

Answer: (A)

The key idea is that a durable power of attorney is designed to stay in force if the principal becomes incapacitated. The “durable” feature means the agent can continue to handle the principal’s financial affairs even when the principal can’t. This continuity is what makes the instrument effective during disability, which is why the correct statement is that it remains in effect during the principal’s disability. That said, a durable power of attorney can be drafted to take effect immediately or only upon incapacity (a springing provision), depending on the terms, but the essential point is its ability to operate through disability. It does not appoint a health-care agent—that’s the job of a health-care proxy or advance directive—nor does it set fees for services; compensation is a separate matter.

The key idea is that a durable power of attorney is designed to stay in force if the principal becomes incapacitated. The “durable” feature means the agent can continue to handle the principal’s financial affairs even when the principal can’t. This continuity is what makes the instrument effective during disability, which is why the correct statement is that it remains in effect during the principal’s disability.

That said, a durable power of attorney can be drafted to take effect immediately or only upon incapacity (a springing provision), depending on the terms, but the essential point is its ability to operate through disability. It does not appoint a health-care agent—that’s the job of a health-care proxy or advance directive—nor does it set fees for services; compensation is a separate matter.