During the estate planning process, establishing a power of attorney is a crucial part of ensuring one’s affairs are managed effectively in the event of incapacity or other narrowly tailored circumstances. A power of attorney helps by granting authority to a trusted individual to enact decisions on the grantor’s behalf in the event of an inability to handle matters personally.
Sometimes, it becomes necessary to revoke a power of attorney. This decision may be informed by several reasons, including the following.
Death or incapacity
If the principal or the individual entrusted with the power of attorney passes away or becomes incapacitated, it becomes necessary to revoke the power of attorney. In such cases, the designated agent is no longer able to fulfill their duties, rendering the power of attorney ineffective. Revoking a power of attorney ensures that someone else can be appointed to handle the grantor’s affairs in accordance with their wishes and best interests.
Changes in relationship
Significant changes in the relationship between the grantor and the designated agent may warrant revocation of the power of attorney. This could include instances of trust breaches, conflicts of interest or a breakdown in communication and understanding. If the grantor no longer feels confident in the agent’s ability to act in their best interests or if the relationship has deteriorated to the point where cooperation is compromised, revoking the power of attorney may be necessary to protect the grantor’s interests and ensure proper management of affairs.
Mutual agreement
If the person designated as the agent and the grantor mutually agree to revoke the power of attorney, it can be done to accommodate changes in circumstances or preferences. This might occur if both parties recognize that the current arrangement is no longer suitable or if the agent is unable or unwilling to continue fulfilling their duties.
If you are considering setting up power of attorney, consider seeking legal guidance to better understand the implications, requirements and options available to you so your wishes are accurately reflected and legally binding. If you need to revoke an established authority, seeking legal guidance can be helpful as well.