When does a power of attorney officially become effective?

A power of attorney (POA) typically becomes effective immediately upon being signed by the grantor, unless the document specifies a different effective date or conditions for activation. This means that as soon as the grantor signs the document, the named agent (the person granted the authority) has the legal ability to make decisions and act on behalf of the grantor regarding financial or medical matters, depending on the type of power of attorney established.

While many people may associate powers of attorney with situations involving incapacity, they are not exclusively limited to that context. A durable power of attorney can remain effective even if the grantor becomes incapacitated. In contrast, a non-durable power of attorney typically becomes invalid upon the grantor’s incapacity. However, in this scenario, since the question pertains to when a power of attorney becomes effective in a general sense, the immediate effectiveness upon signing is the most accurate and common understanding, barring specific terms stated in the document itself.

Other scenarios, such as waiting periods or necessitating incapacity due to illness or accidents, do not align with the standard procedure in which a power of attorney becomes active right after signing.