united-states new-jersey securities disabilities power-of-attorney
Trading authority and incapacitation
<p>Person X gives Person Y the authority to trade person's X brokerage account and to take money out of the account for the benefit of person X. It is not a durable power.</p>
<p>After some time, person Y has good reason to believe that person X is no longer legally competent, in part, because two doctors have expressed that view. However, no court has ruled that person X is no longer legally competent. Has person Y lost his ability to trade for person X?</p>

<blockquote>
<p>Has person Y lost his ability to trade for person X?</p>
</blockquote>
<p>Yes. A power of attorney that is not a durable power is not longer effective when the principal is incapacitated.</p>
<p>If the agent believes that the principal is incapacitated the agent cannot in good faith use the power.</p>
<p>FWIW, non-durable powers of attorney aren't very common.</p>
