When does an Immediate Power of Attorney terminate?

An Immediate Power of Attorney, which grants authority to an appointed individual to make decisions on behalf of the donor, has specific conditions under which it terminates. One of the most critical events that leads to the termination of this authority is the loss of mental capacity or the death of the donor.

When a donor loses mental capacity, they are no longer able to make informed decisions for themselves, rendering the power of attorney ineffective since its purpose is to act on the donor's behalf. Similarly, upon the death of the donor, the power of attorney ceases to have any authority, as the legal relationship established by the power of attorney is fundamentally tied to the existence of the donor. This underscores the need for a clear and definitive end to the powers granted, ensuring that decisions cannot be made by someone who is no longer able to provide consent.

While a financial decision made by the donor does not terminate the power of attorney, choices made by the attorney or the duration set by the donor may influence the relationship, but they do not inherently cause the immediate termination of the authority unless specified as conditional in a unique arrangement.