Which type of power of attorney is designed to activate only upon incapacity?

• A. Durable power of attorney
• B. Principal
• C. Springing power of attorney
• D. Agent

Answer: (C)

Activating power of attorney based on a triggering event is what this item tests. The springing form is designed to lie dormant until incapacity occurs, at which point it springs into effect and the agent can act on behalf of the principal. This makes it the best answer because the question asks for an arrangement that activates only upon incapacity. A durable power of attorney, by contrast, is meant to remain in effect if incapacity happens and is typically effective from the time it is executed, not waiting for incapacity. The terms principal and agent describe the people involved, not when the authority activates.