Power of attorney: A power of attorney is the generic term usually meaning durable general power of attorney for financial matters. In Maryland, powers of attorney are assumed to be durable. This means that if the grantor latter becomes “disabled” the power of attorney is still valid after that person becomes disabled. One has to be very careful when drafting a durable general power of attorney. A power of attorney form can be complex and arduous to prepare. This document can be a very powerful document. Additionally, the powers granted to the “attorney in fact” should be clearly granted in the durable general power of attorney document or you risk having the power of attorney dishonored. Currently in Maryland, financial institutions cannot be forced to honor a durable general power of attorney.

There are various forms of powers of attorney. A power of attorney form can be a complex document granting very wide range of powers, or it may be a limited power of attorney, whereby the powers are granted over one asset or one account. Additionally, a power of attorney may be effective when it is signed or it may be a “springing power of attorney.” A springing power of attorney becomes effective upon certain occurrences. The typical event that makes a springing power of attorney effective is the certification by two physicians of the grantor’s disability. .