What type of power of attorney becomes effective only upon the occurrence of a specific event?

The type of power of attorney that becomes effective only upon the occurrence of a specific event is known as a springing power of attorney. This legal document is designed to "spring" into effect under certain conditions, typically when the principal (the person granting the power) becomes incapacitated or unable to make decisions for themselves.

This feature distinguishes it from a general power of attorney, which provides broad powers to act on behalf of the principal from the moment it is executed, and a durable power of attorney, which remains effective even if the principal becomes incapacitated but does not require a specific triggering event. In contrast, a limited power of attorney restricts the agent's authority to specific tasks or time frames but does not inherently have the conditional effectiveness associated with a springing power.

Overall, the springing power of attorney is particularly valuable for individuals who want to ensure that their agent only has authority when they are no longer able to manage their affairs themselves.