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Person X gives Person Y the authority to trade person's X brokerage account and to take money out of the account for the benefit of person X. It is not a durable power.

After some time, person Y has good reason to believe that person X is no longer legally competent, in part, because two doctors have expressed that view. However, no court has ruled that person X is no longer legally competent. Has person Y lost his ability to trade for person X?

ohwilleke
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Bob
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1 Answers1

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Has person Y lost his ability to trade for person X?

Yes. A power of attorney that is not a durable power is not longer effective when the principal is incapacitated.

If the agent believes that the principal is incapacitated the agent cannot in good faith use the power.

FWIW, non-durable powers of attorney aren't very common.

ohwilleke
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