A springing power of attorney (POA) can seem appropriate and appealing—it only becomes effective when a specific event occurs, usually incapacity. That structure feels like a safeguard.
However, in practice, springing POAs often create significant complications exactly when simplicity and speed matter most. Before choosing this approach, it’s important to understand several key risks.
Capacity Issues: Can It Be “Triggered”?
A springing POA typically requires proof that the individual is no longer capable of managing their affairs. But if dementia or cognitive decline occurs, the situation becomes unclear. The person may be in a gray area—clearly struggling yet not easily classified as legally incapacitated. This ambiguity can delay or even prevent the POA from “springing” into effect at the time it’s actually needed. Families often find themselves stuck, unable to act while watching a loved one decline.
Delays at the Worst Possible Time
Even when incapacity is evident, a springing POA usually requires formal steps before it becomes effective—often written certification by one or more physicians. These steps take time and coordination. During this delay, critical decisions may go unmade: bills go unpaid, investments aren’t managed, or healthcare decisions may be postponed. The irony is that a tool intended to provide control can instead create delays when urgency is needed.
Doctors May Refuse to Certify Incapacity
Another common challenge is that physicians are often reluctant to formally declare a patient incapacitated. This determination can carry legal and ethical implications, and many providers are understandably cautious about making definitive statements about cognitive capacity. As a result, families or friends may struggle to obtain the required certification—or face inconsistent opinions—leading to further delays and frustration. In some cases, this can even force a court proceeding, defeating the purpose of having a POA in place.
It May Signal a Trust Issue
Finally, the decision to create a springing POA often raises a deeper question: why limit the decision-making authority? If you trust the person you’ve named as your agent, a durable (immediately effective) POA may be more practical and flexible. If you feel the need to restrict authority until incapacity is proven, it may be worth reconsidering your choice of agent. A POA relies heavily on trust—without it, the structure becomes more complicated and less effective.
If you would like to learn more about springing POAs—or alternate options that may better serve your needs—reach out to us at Apella Wealth. We’d love to help you navigate all your financial challenges.
Apella Capital, LLC (“Apella”), DBA Apella Wealth, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered or excluded or exempt from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Apella Wealth provides this communication as a matter of general information. Any data or statistics quoted are from sources believed to be reliable but cannot be guaranteed or warranted.