Account Types
Which type of power of attorney continues to be valid if the account owner becomes mentally incapacitated?
A durable power of attorney specifically remains in effect even if the principal becomes incapacitated. Non-durable POAs terminate upon incapacity. "Limited" and "full" refer to the scope of authority, not durability. Du
Complete Analysis & Legal Rationale
A durable power of attorney specifically remains in effect even if the principal becomes incapacitated. Non-durable POAs terminate upon incapacity. "Limited" and "full" refer to the scope of authority, not durability. Durable POAs are important for estate planning.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.