Which power of attorney becomes effective only when the principal becomes incapacitated?

• A. Springing power of attorney
• B. Durable power of attorney
• C. Agent
• D. Self-dealing

Answer: (A)

Activation condition is what this item is testing. A springing power of attorney is designed to take effect only when a specific event occurs—most commonly the principal’s incapacity certified by a physician. That means the agent’s authority “springs” into existence at the moment incapacity is established, which is why this type is the one that becomes effective only when the principal is incapacitated.

By contrast, a durable power of attorney is drafted to survive incapacity and can take effect (or continue) regardless of the principal’s capacity, so it does not wait for incapacity to arise. An agent is simply the person chosen to act under a POA, not a type of POA itself. Self-dealing is a fiduciary issue describing improper use of power, not a form of activation.