Springing Power Clause

By default, a financial power of attorney is effective the moment the principal signs. A springing clause changes that. The agent has no authority until the document's trigger fires — usually one or two physicians signing a statement of incapacity. Once the trigger fires, the agent can act.

Families include a springing clause when the principal is uncomfortable handing live authority to anyone while still healthy. The trade-off is a real one: in an emergency the agent may face delays getting the disability determination signed, which slows decisions exactly when speed matters. Many clients ultimately prefer an immediate-effect POA with a trusted agent.

Arizona's financial power of attorney statute, ARS § 14-5501 and following, expressly permits a springing power. The document must spell out who determines incapacity and how. Banks and brokerages sometimes hesitate to honor springing POAs because they cannot independently verify the trigger has occurred, which is one of the practical reasons immediate-effect POAs are more common in modern Arizona practice.

Documents that include a springing power clause typically contain language along these lines: "This power of attorney shall become effective only upon the written certification of two licensed Arizona physicians that I am unable to manage my financial affairs." Descriptive only.

• Two-physician trigger. Two physicians must independently certify incapacity.
• One physician plus family member. A single physician plus a named family member's written acknowledgement.
• HIPAA-coupled. The springing clause includes its own HIPAA authorization so the certifying physicians can communicate with the agent.

The most common failure is a financial institution refusing to accept the springing POA because it cannot verify the trigger. A second failure is naming a certifying physician who is no longer in practice or no longer the principal's doctor when the trigger is needed. A third pitfall is forgetting to attach a HIPAA authorization that lets the physicians actually communicate with the agent about the principal's condition.