# Ideas for Powers of Attorney

> Ideas for Powers of Attorney

Source: https://wiki.powersofattorney.com/ideas · Updated 2 February 2023

### Ideas For *Powers Of Attorney*

**Page overview**

- **This page puts forward some ideas about how *Powers of Attorney* might be used.**

Video: https://www.youtube.com/watch?v=BN7M-xwrwuA

**Page index**

- [Appointing **family members as ‘managers’**](https://wiki.powersofattorney.com/ideas#appointing-family-members-as-managers)
- [**‘Changing the guard’** upon a date](https://wiki.powersofattorney.com/ideas#changing-the-guard-upon-a-date)
- [Using a **government form** in conjunction **with** a **custom** *Power of Attorney*](https://wiki.powersofattorney.com/ideas#using-a-government-form-in-conjunction-with-a-custom-power-of-attorney)
- [**Using** a **durable and non-durable** *Power of Attorney*](https://wiki.powersofattorney.com/ideas#using-a-durable-and-non-durable-power-of-attorney)
- [**Using two** *Powers of Attorney*](https://wiki.powersofattorney.com/ideas#using-two-powers-of-attorney)
- [**Using** a **durable *Power of Attorney*** to **remove consideration of capacity**](https://wiki.powersofattorney.com/ideas#using-a-durable-power-of-attorney-to-remove-consideration-of-capacity)
- [Including **checks and balances**](https://wiki.powersofattorney.com/ideas#including-checks-and-balances)
- [Using multiple *Powers of Attorney* conditional on **availability of a key person** may solve problems](https://wiki.powersofattorney.com/ideas#using-multiple-powers-of-attorney-conditional-on-availability-of-a-key-person)
- [**Using conditions** to control outcomes](https://wiki.powersofattorney.com/ideas#using-conditions-to-control-outcomes)
- [Using **insight** from the legislation](https://wiki.powersofattorney.com/ideas#using-insight-from-the-legislation)

## Appointing Family Members as ‘Managers’

A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) might:-

- appoint certain family members as their [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal)
- authorize their [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to appoint [sub-agents](https://wiki.powersofattorney.com/subagents#original-or-successor-agent-may-appoint-sub-agent), subject to certain [class conditions](https://wiki.powersofattorney.com/conditions#conditions-upon-a-class), [limitations](https://wiki.powersofattorney.com/limitwhatis#a-limitation-regulates-the-core-terms-of-a-power-of-attorney) and [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-the-core-terms-of-a-power-of-attorney)
- tailor the role of [sub-agents](https://wiki.powersofattorney.com/subagents#original-or-successor-agent-may-appoint-sub-agent) using [limitations](https://wiki.powersofattorney.com/limitwhatis#a-limitation-regulates-the-core-terms-of-a-power-of-attorney) and [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-the-core-terms-of-a-power-of-attorney)

This sort of arrangement might be structured so that family members:-

- supervise [sub-agents](https://wiki.powersofattorney.com/subagents#original-or-successor-agent-may-appoint-sub-agent) performing those [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks)
- perform those [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) themselves if they see fit, perhaps in specific circumstances
- only perform [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) themselves in exceptional circumstances
- only appoint a suitably qualified and insured professional as a [sub-agent](https://wiki.powersofattorney.com/subagents#original-or-successor-agent-may-appoint-sub-agent)

## 'Changing The Guard’ Upon A Date

Two *Powers of Attorney* might operate respectively on opposite sides of a critical date to allow a ‘changing of the guard’.

For example, imagine an arrangement under which the ‘critical date’ is for each party to the marriage, their spouse’s 72nd birthday and use of following two *Powers of Attorney* and eachg spouse executes a *Power of Attorney* along these lines, where the same date is inserted in each *Power of Attorney*, being the 72nd birthday of their spouse:-

|  |  |
| --- | --- |
| **First *Power of Attorney*** | *"I appoint my spouse (and children as [successor agents](https://wiki.powersofattorney.com/successoragents#a-successor-agent-replaces-an-original-agent-who-is-ineligible)) and this Power of Attorney [terminates](https://wiki.powersofattorney.com/termmng#termination-refers-to-a-power-of-attorney-coming-to-an-end) on [date]*…" |
| **Second *Power of Attorney*** | “This *Power of Attorney* [commences](https://wiki.powersofattorney.com/commencement#commencement-of-power-of-attorney) on [date]… I appoint my children as [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal)…” |

In a variation of this arrangement, perhaps under the Second *Power of Attorney*, their spouse may also be appointed an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal), with authority to act independently, whilst the children may only act by agreement (*either with each other or perhaps also with the spouse, or perhaps under a ‘majority’ arrangement , such that a child may only act ‘by majority’, defined to mean with at least one co-agent unless there is only one [eligible](https://wiki.powersofattorney.com/terms#meaning-of-eligible) and appointed agent*).

Under this arrangement:-

- each party’s spouse would remain as their ‘primary’ [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) until they spouse achieved 72 years of age
- on the spouse’s 72nd birthday:-

  - the [principal’s](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) children would assume the role of being the ‘primary’ [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal)
  - the [principal’s](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) children would be appointed, on terms designed for that stage of the [principal’s](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) life

This kind of arrangement may be structured so that the [principal’s](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) spouse may also perform [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) under the Second *Power of Attorney*.

## Using A Government Form In Conjunction With A Custom *Power of Attorney*

To achieve particular outcomes it may be best to use two *Powers of Attorney*, namely a [government form](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il) and a [custom-made](https://wiki.powersofattorney.com/idealcontent#features-of-powersofattorneycom) *Power of Attorney.*

For example, the [custom-made](https://wiki.powersofattorney.com/idealcontent#features-of-powersofattorneycom) *Power of Attorney* may be [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) to include a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-the-core-terms-of-a-power-of-attorney), to the following effect:

“…[*agents*](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) *appointed under the Power of Attorney are authorized to use the Power of Attorney in the shape of a* [*government form*](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il) *executed by me and bearing the same date as this Power of Attorney, solely for the purpose of fulfilling the terms of this Power of Attorney…*”

The [government form](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il) may or may not include reference to the [custom-made](https://wiki.powersofattorney.com/idealcontent#features-of-powersofattorneycom) *Power of Attorney*, depending upon how the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) wants to structure their affairs.

This sort of arrangement means that for example, the [custom-made](https://wiki.powersofattorney.com/idealcontent#features-of-powersofattorneycom) *Power of Attorney* might be expressed to [commence](https://wiki.powersofattorney.com/commencement#commencement-of-power-of-attorney) at precisely the same time that the [government form](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il) is certified to [commence](https://wiki.powersofattorney.com/commencement#commencement-of-power-of-attorney), so as to take advantage of [certifications](https://wiki.powersofattorney.com/agentcertsaffidavits#verifying-certificates-affidavits) with respect to [commencement](https://wiki.powersofattorney.com/commencement#commencement-of-power-of-attorney).

For example, the [custom-made](https://wiki.powersofattorney.com/idealcontent#features-of-powersofattorneycom) *Power of Attorney* might say, so to speak:-

“*this [custom made] Power of Attorney* [*commences*](https://wiki.powersofattorney.com/commencement#commencement-of-power-of-attorney) *at the same as the* [*government form*](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il) *bearing the same date.*.”

## Using A Durable and Non-Durable *Power of Attorney*

By [creating](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) and a [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Power of Attorney*, a [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) can operate two different regimes.

One regime operates up to any point in time that the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) and the other [commences](https://wiki.powersofattorney.com/commencement#commencement-of-power-of-attorney) at any time that the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) loses [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs).

This sort of arrangement permits the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) to:-

- include [checks and balances](https://wiki.powersofattorney.com/ideas#including-checks-and-balances) in the [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) that are suitable if the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) lacks [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs)
- ensure that prior to the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) losing [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs), their affairs are subject to [checks and balances](https://wiki.powersofattorney.com/ideas#including-checks-and-balances) suitable for when the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs)

The idea below titled [Using Two *Powers of Attorney*](https://wiki.powersofattorney.com/ideas#using-two-powers-of-attorney) is a variation on this idea.

## Using Two *Powers of Attorney*

A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) might [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) two [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) *Powers of Attorney*, prescribing two different regimes.

The suggested definition of the term “*at any time during any period*” in the [Case Study - Between Two Dates](https://wiki.powersofattorney.com/casestudies#case-study-between-two-dates) may be helpful in constructing these terms.

### Option 1

The first regime may be designed to work if the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) and the other if the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) lacks [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs).

Casting them both as [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) *Powers of Attorney*:-

- one might be described as operating at any time during any period that the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs)
- one might be described as operating at any time during any period that the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) lacks [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs)

Potentially, for example:-

- the one operating at any time during any period that the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) might authorize one [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to act by independently
- the one operating at any time during any period that the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) lacks [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) might authorize two or more [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to act by agreement

### Option 2

Alternatively, for example:-

- the one operating at any time during any period that the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) might authorize one [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to act by independently
- the other might operate whether or not the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs), authorizing the [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) who is authorized to act independently if the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) to act by agreement with certain other [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal)

### Analysis

Under this arrangement, if the [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) who is authorized to act independently at times when the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) is confident that the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) they may act on their own and if that [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) is unsure if the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) they can prefer to act by agreement with other [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) per the second *Power of Attorney*.

Central to this kind of arrangement may be a need to ensure the *Powers of Attorney* substantially mirror each other in various respects, for example with regard to the [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) authorized to be performed under the *Powers of Attorney*.

## Using A Durable *Power of Attorney* To Remove Consideration of Capacity

Considerations relevant to a *Power of Attorney* are inherently simpler where the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) authorizes an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to act whether or not the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs).

This approach means that [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) is unlikely to be an issue of any magnitude at any time during the life of the *Power of Attorney*.

A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) who wants to further minimise this risk might for example, ensure that a suitable medical report is obtained at the time they [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) the *Power of Attorney*, confirming their [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) at the time at that time.

By comparison, an approach for example whereby an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may only act if the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) or only if the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) lacks [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) means that:-

- the [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) is inherently more likely to or capable of potentially being an issue in a litigated dispute
- an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) needs to be mindful of the [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) at all times
- an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may find themselves liable in respect of any action taken at any time that [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has or lacks [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs), whichever be applicable

It may be sensible for a [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) to [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney* that under which an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may only act if the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) has [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) or only if the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) lacks [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs), depending upon the needs and preferences of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney).

## Including Checks And Balances

Inclusion of [checks and balances](https://wiki.powersofattorney.com/insightrisks#there-are-risk-management-practices-involving-the-terms-of-the-power-of-attorney) might be useful.

[Checks and balances](https://wiki.powersofattorney.com/insightrisks#there-are-risk-management-practices-involving-the-terms-of-the-power-of-attorney) include provisions dealing with:

- [access to records](https://wiki.powersofattorney.com/insightrisks#promoting-access-to-records-and-disclosure-of-information-may-reduce-risks) and [disclosure of information](https://wiki.powersofattorney.com/insightrisks#promoting-access-to-records-and-disclosure-of-information-may-reduce-risks) (ensuring copies of the *Power of Attorney* and relevant records are [accessible](https://wiki.powersofattorney.com/insightrisks#promoting-access-to-the-power-of-attorney-may-reduce-risks) to key persons)
- [notification regimes](https://wiki.powersofattorney.com/insightrisks#using-notification-regimes-may-reduce-risks) (for example, requiring [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to notify key persons if they appoint a [sub-agent](https://wiki.powersofattorney.com/subagents#original-or-successor-agent-may-appoint-sub-agent) or perform a transaction involving more than $20,000 etc.)
- [review procedures](https://wiki.powersofattorney.com/insightrisks#imposing-review-requirements-may-reduce-risks) including [record keeping](https://wiki.powersofattorney.com/insightrisks#good-record-keeping-is-important) reviews
- other [risk management](https://wiki.powersofattorney.com/insightrisks#risk-management-practices-are-wide-and-varied) initiatives

Notably in **New York**,[^1] a [person](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person) may appoint a [monitor](https://wiki.powersofattorney.com/monitor#what-is-a-monitor) with authority to inspect accounts and similar.

This is unique as within the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa).

In the other states, there is nothing to prevent a [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) from [creating](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney* under which an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) is given similar authority to a [monitor](https://wiki.powersofattorney.com/monitor#what-is-a-monitor) in **New York**.

[Checks and balances](https://wiki.powersofattorney.com/insightrisks#there-are-risk-management-practices-involving-the-terms-of-the-power-of-attorney) may be particularly useful when [creating](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) *Power of Attorney.*

Options with respect to checks and balances are explored under the heading [There Are Risk Management Practices Involving The Terms Of The *Power of Attorney*](https://wiki.powersofattorney.com/insightrisks#there-are-risk-management-practices-involving-the-terms-of-the-power-of-attorney)*.*

## Using Multiple *Powers of Attorney* Conditional On Availability Of A Key Person

If a key [person](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person) is integral to the affairs being the subject of a *Power of Attorney* it may be helpful to use two *Powers of Attorney*:-

- one operating if the key [person](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person) is [eligible](https://wiki.powersofattorney.com/terms#meaning-of-eligible) and appointed; and
- the other to operate if the key [person](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person) is not available

The two *Power of Attorney* might for example, contain [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-the-core-terms-of-a-power-of-attorney) along these lines:-

|  |  |
| --- | --- |
| **1st *Power of Attorney*** | This *Power of Attorney* does not operate at any time that Mary Smith is not eligible and appointed under this *Power of Attorney* and my *Power of Attorney* dated the same date as this *Power of Attorney* which appoints John Smith and David Smith as my agents is to operate at any time that Mary Smith is not eligible and appointed under this *Power of Attorney"* |
| **2nd *Power of Attorney*** | “This *Power of Attorney* does not operate at any time that Mary Smith is eligible and appointed under the *Power of Attorney* I have executed today dated the same date as this *Power of Attorney* which appoints Mary Smith as my agent and if Mary Smith is not eligible and appointed under the *Power of Attorney* I have executed today dated the same date as this *Power of Attorney,* this *Power of Attorney* appointing John Smith and David Smith as my agents operates at any time that Mary Smith is not eligible and appointed under that *Power of Attorney" |

Relevant wording might include:-

- suitable [termination](https://wiki.powersofattorney.com/termmng#termination-refers-to-a-power-of-attorney-coming-to-an-end) provisions
- definition of the word “operate” and other terms in the *Power of Attorney*[^2]

## Using Conditions to Control Outcomes

[Conditions](https://wiki.powersofattorney.com/conditions#conditions-can-be-imposed-in-respect-of-an-agents-appointment) control the right of a candidate to be appointed as an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal).

For example, a [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) might appoint a grandchild as a [successor agent](https://wiki.powersofattorney.com/successoragents#a-successor-agent-replaces-an-original-agent-who-is-ineligible)) on terms that they become entitled to have certain expenses paid for them (i.e. educational expenses), for as long as they continue to act in a manner consistent with achieving that qualification by say, 25 years of age

This sort of a scheme would operate as an incentive for grandchildren, who would have their education or perhaps other expenses paid, if they enter university and any time thereafter, as long as they remain committed to acting as an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) if required.

Considerations relevant to this sort of arrangement might include:-

- entitling them to these expenses prior to them [accepting appointment](https://wiki.powersofattorney.com/agentappt#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states) or acting as a [successor agent](https://wiki.powersofattorney.com/successoragents#a-successor-agent-replaces-an-original-agent-who-is-ineligible), their payment being a [‘special’ task](https://wiki.powersofattorney.com/whatcanagentdo#performance-of-special-and-hot-tasks-is-restricted)
- entitling them to these expenses if and when they [accept appointment](https://wiki.powersofattorney.com/agentappt#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states) or acting as a [successor agent](https://wiki.powersofattorney.com/successoragents#a-successor-agent-replaces-an-original-agent-who-is-ineligible)
- [limiting](https://wiki.powersofattorney.com/limitwhatis#a-limitation-regulates-the-core-terms-of-a-power-of-attorney) the payment of these expenses where for example, they fail to continue to act in a manner consistent with acquiring their qualification by their 25th birthday

## Using Insight From The Legislation

It may be useful to consider the content of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) in the various [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa) when drafting particular provisions in a *Power of Attorney*, for example:-

- [§4238](https://codes.findlaw.com/ca/probate-code/prob-sect-4238.html) in **California** deals with production of accounts in considerable detail, identifying precisely what an an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) must produce
- [§5-1507](https://www.nysenate.gov/legislation/laws/GOB/5-1507) in **New York** discusses a procedure with respect to how an [agent](https://wiki.powersofattorney.com/agentswhatisagent#what-is-an-agent) should execute documents on behalf of the [principal](https://wiki.powersofattorney.com/principal#who-is-the-principal)
- the various [duties](https://wiki.powersofattorney.com/agentswhatisagent#legislation-sets-out-various-duties-owed-by-an-agent) imposed upon [agents](https://wiki.powersofattorney.com/agentswhatisagent#what-is-an-agent) under the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa)
- the specific wording in **Pennsylvania** dealing with “*power to make additions to an existing trust*” (see [§5603©](https://codes.findlaw.com/pa/title-20-pacsa-decedents-estates-and-fiduciaries/pa-csa-sect-20-5603.html))

There are many more examples in this Wiki.

## Using Directions To Control Outcomes

### Example 1 - Directions Relating to Transactions

#### *Power of Attorney*

A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) might appoint, for example:-

- two (2) [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) with authority to perform three specified [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks)
- three (3) potential [successor agents](https://wiki.powersofattorney.com/agentswhatisagent#a-successor-agent-replaces-an-original-agent-who-is-ineligible) who are authorized to replace an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) who becomes [ineligible](https://wiki.powersofattorney.com/terms#meaning-of-ineligible)

#### Directions

A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) might prescribe in the *Power of Attorney*:-

1. any [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) who intends to enter any transaction involving more than $100,000 must notify all other [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal):- (a) of their intention to perform the transaction; and (b) when the transaction has been completed
2. the *Power of Attorney* [terminates](https://wiki.powersofattorney.com/termmng#termination-refers-to-a-power-of-attorney-coming-to-an-end) on 27 June 2035, unless certain events have occurred
3. no [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) is authorized to perform any transaction involving sale of the [principal’s](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) primary residence without written consent from the [principal’s](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) spouse (*or any agent or manager of their estate, if their spouse lacks [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs)*); and
4. the equity of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) realized on sale is to be applied less sale-related expenses to:- (a) any new primary residence of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney); or (b) if the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) is in care, to any primary residence of the [principal’s](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) spouse © in further default towards the residence of children (*to a certain age*) etc.

#### Conclusion

These [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-the-core-terms-of-a-power-of-attorney) seem likely to make it more difficult for large transactions to perform outside the purview of all [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) and protect the interests of the [principal’s](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) spouse.

### Example 2 - Further Example of Directions Relating to Transactions

If an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) was authorized to perform transactions on a certain bank account, a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) that:-

- an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) must notify other [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) of transactions on the account totalling more than $20,000 in any month
- prior to a certain date transactions cannot be performed on a particular account

### Example 3 - Illustration of Comparison with Limitations

A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) might prescribe in respect of a specific [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) operating a bank account:-

- a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) that the account may only be accessed to meet expenses related to a specific purpose
- a [limitation](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle) to the effect that only $1,000 may be withdrawn on any given day

Equally for example, a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) to the effect that only $1,000 may be withdrawn on any given day would seem to cover the same ground as the [limitation](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle) noted above.

### Example 4 - Illustration of Importance Not Conflicting with Legal Principles

Imagine a *Power of Attorney* in **Florida** for a [person](https://wiki.powersofattorney.com/terms#meaning-of-natural-person)[^3] that contained a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-the-core-terms-of-a-power-of-attorney) to the following effect:-

“*…this Power of Attorney is to become effective on 1 January 2042*.

In **Florida**, this *Power of Attorney* would fall afoul of [§709.2108(3)](https://codes.findlaw.com/fl/title-xl-real-and-personal-property/fl-st-sect-709-2108.html), which states:

*"…a Power of Attorney is ineffective if the power of attorney provides that it is to become effective at a future date or upon the occurrence of a future event or contingency…”*

## Using Limitations To Control Outcomes

### Example 1 - Limiting Use of Certain Bank Accounts

A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) might authorize a specific [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to operate a specific bank account and:-

- [limit](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle) access for specific purposes
- [limit](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle) daily transactions up to a sum, say up to a total of $1,000 on any given day

A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) might:-

- authorize only three (3) of more than three (3) [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to perform transactions upon a certain bank account
- [limit](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle) one [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to make transactions totalling only up to $1,000 in any given month

### Example 2 - Limitations With Respect to Certain Transactions

A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) might appoint two [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) with authority to perform three [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) and three potential [successor agents](https://wiki.powersofattorney.com/agentswhatisagent#a-successor-agent-replaces-an-original-agent-who-is-ineligible) who are authorized to replace an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) who becomes [ineligible](https://wiki.powersofattorney.com/terms#meaning-of-ineligible).

The [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) might include [limitations](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle) to the effect that:

1. no [task](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) involving more $100,000 be performed without reasonable notice (i.e ideally at least 7 days notice) to every [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal)
2. no [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) receive more than $20,000 by way of [remuneration](https://wiki.powersofattorney.com/agententitle#an-agent-may-be-entitled-to-remuneration-or-expenses) in any given year (*perhaps unless certain conditions are satisfied, i.e. working in excess of 120 hours in the given year and subject to certain [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) dealing with excess remuneration above $20,000 etc*.)
3. no [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) authorized to perform any transaction involving sale of the [principal’s](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) primary residence unless the proceeds of sale are put towards: (a) any new primary residence of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney); or (b) if the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) is in care, to any primary residence of the [principal’s](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) spouse © in further default towards the residence of children (*to a certain age*) etc.

### **Example 3** - Limitations In Conjunction With Third Party Approvals

A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) might [limit](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle) the authority of an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to sell assets worth in excess of $50,000, unless a suitably qualified accountant agrees the sale is in the best interests of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney).

[^1]: Under a *Power of Attorney* excluded from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) - [click here](https://wiki.powersofattorney.com/legislation#exclusions) to read more.
[^2]: Taking into account for example that to work in Florida, that definition would need to ensure there is no suggestion the word “operate” implies something less than “becoming effective” for the purpose of [§709.2108(3)](https://codes.findlaw.com/fl/title-xl-real-and-personal-property/fl-st-sect-709-2108.html).
[^3]: Being a *Power of Attorney* for a [person](https://wiki.powersofattorney.com/terms#meaning-of-natural-person) that is not excluded from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) - [click here](https://wiki.powersofattorney.com/legislation#exclusions) to read more.