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Power of Attorney
Can my mom purchase life insurance despite having a DPOA in effect?

Can my mom purchase life insurance despite having a DPOA in effect?

Q: What makes your Massachusetts POA legally valid?

In Massachusetts, a valid power of attorney must be in writing, signed by the principal, and witnessed by at least one person. It must also be notarized to be effective. The principal must have the mental capacity to understand the nature of the document and its implications when signing it.

Q: What are the legal requirements for a durable power of attorney in Massachusetts?

In Massachusetts, a durable power of attorney must be in writing, signed by the principal, and notarized. It must explicitly state that it remains effective even if the principal becomes incapacitated. The principal must also have the capacity to understand the document at the time of signing.

Q: Does a durable power of attorney need to be activated?

A durable power of attorney does not need to be activated in the same way as a health care proxy. It becomes effective immediately upon signing unless stated otherwise. However, its use may be contingent on the principal's incapacity, which can be determined by a doctor.

Full question:

We have a Durable Power of Attorney for my Mom. We asked her doctor to 'activate' the DPOA per Massachusetts Law by providing a letter certifying that Mom is no longer able to manage her own affairs (the doctor did so). The DPOA was signed, witnessed, and notarized on 5/27/09. Even though we have activated the DPOA, Mom is obviously and undeniably able to make 'simple' choices, judgments, and decisions (as opposed to those requiring complex analysis), and to communicate clearly.(3-part) QUESTION:1.) Can Mom legally purchase a Life Insurance policy for herself and designate beneficiaries, even though a DPOA is legally in effect for her, WITHOUT our having to use the DPOA to do so on her behalf ? 2) Is Mom's purchase of a life insurance policy and her designation of beneficiaries legally IRONCLAD and UNCONTESTABLE despite the existence of her already legally effective DPOA? 3) Despite the fact a DPOA is now and forever in effect for Mom, is Mom free to make her own decisions at any time in the future, provided we (her joint attorneys-in-fact) decide it is NOT necessary to use the DPOA on her behalf for a particular purpose or circumstance?

Category: Power of Attorney
Date: 04/07/2025
State: Massachusetts

Answer:

A contract must be signed by a person who has the capacity to understand their actions for it to be legally valid. If a doctor certifies that a person lacks capacity, any contract signed during that time may be challenged as invalid. Courts may uphold contracts made by someone who is incapacitated if they can prove they were lucid at the time of signing, but this is subjective and depends on the circumstances. Evidence such as witness testimony and doctors' opinions may be considered. To avoid claims of incompetence or undue influence, it's wise to ensure any estate arrangements are secure. A contract signed while a declaration of incapacity is in effect may be contested later. A doctor can also declare that a person has regained capacity, which would end the effectiveness of the DPOA, allowing the individual to contract on their own behalf. If a person regains capacity, they can revoke the DPOA, and any actions taken by an agent after this knowledge are invalid. In Massachusetts, G.L.c. 201B, § 2 states that acts done by an attorney-in-fact during a period of the principal's incapacity are binding as if the principal were competent. Additionally, G.L.c. 201D, § 6 outlines the process for determining a principal's capacity to make health care decisions, and G.L.c. 201D, § 17 allows for court proceedings regarding disputes under the health care proxy law.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Is power of attorney responsible for medical bills after death?

A power of attorney (POA) does not continue to have authority after the principal's death. Therefore, the agent named in the POA is not responsible for the deceased's medical bills. After death, the estate may be responsible for settling debts, including medical bills, through the probate process.

What three decisions cannot be made by a legal power of attorney?

A legal power of attorney typically cannot make decisions regarding the principal's own divorce, create or revoke a will, or make decisions about the principal's personal care if the principal has a health care proxy in place. These limitations ensure that certain personal and sensitive matters are handled according to the principal's wishes.