In the case of a Durable POA, when does it become ineffective?

A Durable Power of Attorney (POA) is designed to remain effective even when the principal becomes incapacitated. This durability is what distinguishes it from a standard POA, which may end if the principal can no longer make decisions for themselves. The correct reason for when a Durable POA becomes ineffective is upon the principal's death.

Once the principal passes away, the authority granted to the agent under the Durable POA ceases, as the ability to manage the principal's affairs or make decisions immediately terminates. This characteristic is crucial for ensuring that a POA serves its purpose effectively during the principal's lifetime, particularly in times of incapacity.

Other points, such as the POA becoming ineffective upon signing, after a specific time period, or due to the principal’s dissatisfaction, do not align with how a Durable POA is intended to function. The legal framework around powers of attorney ensures continuity of care and decision-making authority while the principal is alive and competent, highlighting the importance of understanding the conditions that affect its validity.