A power of attorney can be very useful in a variety of situations. However, there may come a time when there is no longer a need for it.
Various circumstances can prompt the termination of a power of attorney. Each situation has its own nuances and implications.
Death of the principal
The most definitive termination is when the principal, the individual granting the power of attorney, passes away. The authority given to the agent ceases as soon as they become aware of the death. Until the agent learns of this event, any actions taken in good faith remain legally binding.
In cases where the principal faces incapacitation, the power of attorney ends. There is an exception in the case of a durable power of attorney, which grants the agent continued authority.
The principal has the right to revoke the power of attorney at any time. This act of revocation is a direct and explicit way for the principal to bring the arrangement to an end whenever and for whatever reason.
Another avenue leading to the conclusion of a power of attorney is when it includes a provision for termination. This foresight in drafting allows for a predetermined endpoint.
A power of attorney reaches its conclusion upon achieving its designated purpose. Once the agent fulfills the specific objectives outlined in the document, it naturally comes to an end.
If the agent experiences death, incapacity or resigns from the role, the arrangement concludes.
Ending a power of attorney in Maryland involves navigating a series of potential scenarios. Looking ahead to the potential situations that may arise can allow the principal to properly determine the correct end to the agreement and plan contingencies in the event he or she wishes it to continue with another agent.