New Power of Attorney Rules – “A Rose by Any Other Name…”

 Recent changes to the Florida’s Power of Attorney Act go into effect October 1, 2011 and to understand the scope of those changes, we should start with the basics - - the definitions.

We will now refer to the grantor of authority under the Power of Attorney as the “PRINCIPAL.” The recipient of the grant of authority (formerly an “Attorney-in -Fact”) is now referred to as an “”AGENT.”

“DURABLE” (as used in connection with Durable Power of Attorney) refers to a Power of Attorney that “is not terminated by the Principal’s incapacity.” [Florida Statute 709.2102(2)]. So, clearly a key question is - - What is “INCOMPACITY?” This is defined in the statute as “the inability of an individual to take the actions necessary to obtain, administer, and dispose of real or personal property, intangible property, business property, benefits and income.”

Interestingly enough, the term “POWER OF ATTORNEY” is defined in the Statute (as a writing by which a Principal grants authority to the Agent) but the statute implies that a Power of Attorney grant of authority may be created “whether of not the term is used in that writing.”