Power of Attorney Laws in Michigan
Common law principles recognize the right of people to designate someone else to make decisions on their behalf. This power can be conveyed through a power of attorney, a written document expressing the desires of the person who wants someone else to make the decisions. The state of Michigan recognizes the granting of powers of attorney, and has both common law provisions and specific statutes governing the awarding of these powers.
Terminology
A power of attorney is granted to one person, usually called an agent or an attorney in fact, by the person who wants decisions made on their behalf, usually called a principal. While Michigan recognizes the use of the term attorney in fact, the use of the term is not limited to actual lawyers. Anyone granted a POA can be referred to as an agent or an attorney in fact. However, that doesn't mean all agents have POA, nor does it mean attorneys in fact can act as lawyers and practice law.
Limited, General,and Springing
POA can be granted with a variety of conditions that affect it. One of the more common forms of POA encountered is the limited POA. This document allows others to act on the principal's behalf only in a specific way or for a limited time. For example, a limited POA can be granted to an accountant to prepare a tax return. A general POA is much less common, and grants a very broad power to the agent. A springing POA is one that takes place when certain conditions are met, and can be a part of a general or limited POA. For example, a springing POA might grant the agent general POA upon the principal's death or incapacitation, or remove the POA in the event of the principal's recovery.
Durable Power of Attorney
Michigan also recognizes the right for a POA to be durable. Durability means the ability of the agent to make decisions does not terminate upon the death of the principal. According to Michigan law, any POA document wishing to convey durability must contain the following language: "This power of attorney is not affected by the principal's subsequent disability or incapacity, or by the lapse of time," or "This power of attorney is effective upon the disability or incapacity of the principal." (MCL 700.5501)
Durable Power of Attorney for Health Care
The loss of capacity encountered in end-of-life health care situations often prompts people to create living wills or other documents that detail their wishes in the case of their incapacity. Durable POAs for health care are one way to do this, as they allow an agent to make health care decisions on the principal's behalf when faced with illness or death.
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