Differentiate between durable and non-durable power of attorney.

• A. Durable POA ends when the grantor becomes incapacitated.
• B. Non-durable POA remains in effect after incapacity.
• C. Durable POA remains in effect if the grantor becomes incapacitated; non-durable ends on incapacity or a specified condition.
• D. A POA is only valid for healthcare decisions.

Answer: (C)

The key idea is how incapacity affects who can act and for how long under a power of attorney. A durable power of attorney is designed to keep the agent’s authority in place even if the grantor becomes incapacitated, so the agent can continue handling financial matters, bills, and other duties without interruption until the document is revoked or the grantor dies. In contrast, a non-durable power of attorney is meant to be temporary and ends when the grantor becomes incapacitated or when a specified condition or time frame occurs, so the agent’s authority stops at that point.

That’s why the durable option remains in effect during incapacity, while the non-durable option ends at incapacity. It’s also worth noting that powers of attorney can cover financial affairs, not just healthcare, although healthcare decisions are often handled by a healthcare POA or medical directive rather than a financial POA.