Paralegal Advanced Competency Exam (PACE) Practice Exam

What does a Durable Power of Attorney allow an agent to do?

1. Represent the principal in court only during emergencies

2. Act on behalf of the principal, even if the principal is incapacitated

3. Make decisions regarding the principal's financial investments

4. Change the principal’s legal status

The correct answer is: Act on behalf of the principal, even if the principal is incapacitated

A Durable Power of Attorney is specifically designed to allow an agent to act on behalf of the principal even if the principal becomes incapacitated. This legal document ensures that the agent can manage the principal's affairs without interruption, providing a safeguard against situations where the principal might be unable to make decisions for themselves due to illness, injury, or other factors. The ability for the agent to continue acting is what distinguishes a durable power of attorney from a standard power of attorney, which may become void if the principal becomes incapacitated. The agent can make various decisions, including those related to finances, healthcare, and other personal affairs, depending on the powers granted in the document. In this context, while the other choices touch on aspects of authority that a Power of Attorney might include, they do not encapsulate the primary characteristic of a Durable Power of Attorney, which is the uninterrupted agency even when the principal cannot act. This continuous validity is crucial for effective management of the principal’s affairs during times of incapacity.