Foundations of Powers of Attorney
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Understanding
Knowledge Levels and Associated Verbs
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Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
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|---|---|---|---|---|---|---|---|---|---|
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Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define a power of attorney.1
- Define types of powers of attorney.
- Identify rights and limitations associated with each type of power of attorney.
- Identify that power of attorney legislation may differ by jurisdiction.
- Identify that a power of attorney may only be valid in the jurisdiction in which it is created.
- Identify that the creation of a new power of attorney document may revoke a past power of attorney document, unless explicitly stated otherwise in the new document.
- Explain risks associated with failing to have current powers of attorney in place.
- Identify benefits and risks of the following approaches to drafting a power of attorney document.
- Self-drafting
- Drafting by a competent legal professional
- Define parties to a power of attorney.
- Donor / grantor2
- Donnee / agent / proxy / attorney3
- Identify requirements for the grantor to give power to an attorney, such as:
- Age of majority
- Mentally competent
- Define types of attorneys that may exist.
- Sole attorney
- Co-attorney
- Alternate / subsequent attorney
- Identify requirements for an individual to act as an attorney, such as:
- Age of majority
- Mentally competent
- Identify that in some jurisdictions an undischarged bankrupt cannot be appointed as, or carry on as, an attorney.
- Explain benefits and risks of naming multiple attorneys.
- Identify how many attorneys must agree on a decision.
- When a designation within a power of attorney document states that they may act jointly and severally
- Where no designation within a power of attorney document has been made
- Identify individuals who are generally prohibited from acting as a witness to a power of attorney document, such as:
- Spouse
- Child
- Parent
- Individual named as the attorney in the power of attorney document
- Employee of the donor
- Agent of the grantor
- Define types of decision-making powers that may be given to an attorney.
- Property
- Personal and/or health care
REFERENCES
1 Power of attorney is being used generically to denote any document in which an individual grants decision-making authority and the ability to act on their behalf to another.
2 Grantor denotes the individual that has given the power to act on their behalf to another individual.
3 Attorney denotes the individual that has been given the power to act on behalf of another. This title may have different names in different jurisdictions.
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Understanding
Knowledge Levels and Associated Verbs
|
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
|---|---|---|---|---|---|---|---|---|---|
|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define a power of attorney.1
- Define types of powers of attorney.
- Identify that power of attorney legislation may differ by jurisdiction.
- Identify that a power of attorney may only be valid in the jurisdiction in which it is created.
- Identify that the creation of a new power of attorney document may revoke a past power of attorney document, unless explicitly stated otherwise in the new document.
- Explain risks associated with failing to have current powers of attorney in place.
- Define parties to a power of attorney.
- Donor / grantor2
- Donnee / agent / proxy / attorney3
- Identify requirements for the grantor to give power to an attorney, such as:
- Age of majority
- Mentally competent
- Define types of attorneys that may exist.
- Sole attorney
- Co-attorney
- Alternate / subsequent attorney
- Identify requirements for an individual to act as an attorney, such as:
- Age of majority
- Mentally competent
- Identify that in some jurisdictions an undischarged bankrupt cannot be appointed as, or carry on as, an attorney.
- Explain benefits and risks of naming multiple attorneys.
- Identify individuals who are generally prohibited from acting as a witness to a power of attorney document, such as:
- Spouse
- Child
- Parent
- Individual named as the attorney in the power of attorney document
- Employee of the donor
- Agent of the grantor
- Define types of decision-making powers that may be given to an attorney.
- Property
- Personal and/or health care
Additional Knowledge Expected of CFP Professionals
- Explain rights and limitations associated with each type of power of attorney.
- Explain benefits and risks of the following approaches to drafting a power of attorney document.
- Self-drafting
- Drafting by a competent legal professional
- Explain how many attorneys must agree on a decision.
- When a designation within a power of attorney document states that they may act jointly and severally
- Where no designation within a power of attorney document has been made
REFERENCES
1 Power of attorney is being used generically to denote any document in which an individual grants decision-making authority and the ability to act on their behalf to another.
2 Grantor denotes the individual that has given the power to act on their behalf to another individual.
3 Attorney denotes the individual that has been given the power to act on behalf of another. This title may have different names in different jurisdictions.
