The Kentucky Court of Appeals’ decision in Doolin v. Owen, decided on July 18, 2025, underscores the critical importance of careful drafting and execution of powers of attorney (POAs). This case highlights the pitfalls of “springing” POAs, those POAs that become effective only upon a specific condition like the incapacity of the principal, and offers valuable lessons for seniors and families planning for incapacity and asset management.
Case Background and Facts
In 2015, Linda Miller executed a general power of attorney (POA) in Kentucky, designating an agent to manage her affairs. The POA was designed as a “springing” POA, meaning it would only take effect upon Linda’s disability, as confirmed in writing by her personal physician. The document also specified that it was a durable POA under Kentucky law, intended to remain effective even if Linda became incapacitated. Later, Linda was declared partially disabled in managing her personal affairs and wholly disabled in managing her financial affairs, though the record did not indicate whether her personal physician provided the required written confirmation.
In 2017, relying on the authority of the POA, Linda’s agent established a trust agreement naming Marcy Doolin as the beneficiary. The trust was intended to manage and distribute Linda’s assets. Linda passed away in September 2022, and disputes arose regarding the validity of the trust created under the authority conferred by the POA. Marcy Doolin filed a petition in the Jefferson Circuit Court seeking a declaratory judgment to confirm her rights as the trust’s beneficiary. David Owen, the administrator of Linda’s estate, moved to dismiss Marcy’s petition, arguing that the trust was invalid because the POA was never properly activated.
The circuit court ruled in favor of Owen, finding that the 2015 POA was never triggered due to the absence of a written confirmation of disability from Linda’s personal physician, as required by the POA’s terms. Consequently, the trust created under the POA’s purported authority was deemed void ab initio (invalid from the outset). Marcy sought postjudgment relief, presenting new evidence: a 2017 MRI report and a physician’s report indicating Linda’s disability. The physician was not, however, Linda's personal physician. The circuit court denied her motion. Marcy appealed to the Kentucky Court of Appeals.
On appeal, the Kentucky Court of Appeals reviewed the circuit court’s dismissal de novo, as it involved a legal question of contract interpretation (the POA). That means that the appellate court did not defer to the trial court in any way, but looked at the entire record as if the trial was conducted fresh from the beginning. The court also reviewed the denial of postjudgment relief for abuse of discretion. The appellate court affirmed the circuit court’s rulings, solidifying the importance of adhering to the specific conditions outlined in a springing POA.
The Kentucky Court of Appeals addressed two primary issues:
In 2015, Linda Miller executed a general power of attorney (POA) in Kentucky, designating an agent to manage her affairs. The POA was designed as a “springing” POA, meaning it would only take effect upon Linda’s disability, as confirmed in writing by her personal physician. The document also specified that it was a durable POA under Kentucky law, intended to remain effective even if Linda became incapacitated. Later, Linda was declared partially disabled in managing her personal affairs and wholly disabled in managing her financial affairs, though the record did not indicate whether her personal physician provided the required written confirmation.
In 2017, relying on the authority of the POA, Linda’s agent established a trust agreement naming Marcy Doolin as the beneficiary. The trust was intended to manage and distribute Linda’s assets. Linda passed away in September 2022, and disputes arose regarding the validity of the trust created under the authority conferred by the POA. Marcy Doolin filed a petition in the Jefferson Circuit Court seeking a declaratory judgment to confirm her rights as the trust’s beneficiary. David Owen, the administrator of Linda’s estate, moved to dismiss Marcy’s petition, arguing that the trust was invalid because the POA was never properly activated.
The circuit court ruled in favor of Owen, finding that the 2015 POA was never triggered due to the absence of a written confirmation of disability from Linda’s personal physician, as required by the POA’s terms. Consequently, the trust created under the POA’s purported authority was deemed void ab initio (invalid from the outset). Marcy sought postjudgment relief, presenting new evidence: a 2017 MRI report and a physician’s report indicating Linda’s disability. The physician was not, however, Linda's personal physician. The circuit court denied her motion. Marcy appealed to the Kentucky Court of Appeals.
On appeal, the Kentucky Court of Appeals reviewed the circuit court’s dismissal de novo, as it involved a legal question of contract interpretation (the POA). That means that the appellate court did not defer to the trial court in any way, but looked at the entire record as if the trial was conducted fresh from the beginning. The court also reviewed the denial of postjudgment relief for abuse of discretion. The appellate court affirmed the circuit court’s rulings, solidifying the importance of adhering to the specific conditions outlined in a springing POA.
The Kentucky Court of Appeals addressed two primary issues:
- Was the 2015 POA properly triggered, allowing the creation of the trust agreement under its authority?
- Did the circuit court abuse its discretion in denying Marcy’s postjudgment motion based on newly discovered evidence (the 2017 MRI report and another physician’s report)?
- POA Not Triggered: The court treated the 2015 POA as a contract, interpreting its terms strictly. The POA explicitly required written confirmation of Linda’s disability by her personal physician to become effective. Since no such documentation was provided in the record, the POA was never activated. As a result, the trust created in 2017 under the POA’s purported authority was void, as the agent lacked the legal authority to establish it.
- Postjudgment Relief Properly Denied: Marcy’s postjudgment motion relied on a 2017 MRI report and a report from another physician indicating Linda’s disability. The Court of Appeals found that these documents did not satisfy the POA’s specific requirement for a written confirmation from Linda’s personal physician. The circuit court did not, therefore, abuse its discretion in denying the motion, as the new evidence failed to meet the POA’s springing condition.
- Understand the Risks of Springing POAs: As highlighted in “The Impotent Power of Attorney,” springing POAs, like the one in Doolin v. Owen, can create significant obstacles and introduce unnecessary variables into the orderly administration of an estate plan. Requiring a physician’s written confirmation of disability may seem like a safeguard, but it can render the POA wholly ineffective if the condition is not met precisely. These are commonly rejected by third parties, e.g., banks, brokers, and financial institutions, that recognize these uncertainties and desire to avoid being embroiled in controversy. Seniors should carefully weigh the benefits and risks of springing POAs versus immediate POAs, which take effect upon signing.
- Ensure Clear and Specific POA Terms: The case underscores the importance of drafting POAs with clear, achievable conditions. The requirement for a specific physician’s written confirmation led to the trust’s invalidation. Seniors should work with an elder law attorney to draft POAs that avoid overly restrictive conditions, ensuring the agent can act when needed without unnecessary hurdles.
- Verify Compliance with POA Conditions: Families and agents must diligently comply with a POA’s terms. In Doolin, the absence of the required physician’s letter nullified the trust. Before taking significant actions like creating trusts or managing assets, agents should confirm that all conditions of the POA have been met and document compliance thoroughly.
- Plan Early to Avoid Disputes: Linda’s trust was intended to benefit Marcy, but its invalidation disrupted her estate plan and led to litigation. Seniors can prevent such outcomes by establishing estate plans, including POAs and trusts, well before incapacity. Early planning with an elder law attorney can ensure that documents are valid and aligned with the senior’s wishes. If Linda had settled the trust at the same time that she created the POA, the result would likely have been as she intended.
- Engage Professional Guidance: The complexity of Doolin v. Owen illustrates the value of legal expertise in estate planning. An elder law attorney can help draft POAs, trusts, and other documents to withstand legal scrutiny, advise on the implications of springing versus immediate POAs, and assist in resolving disputes if they arise.
- Document Disability Promptly: For springing POAs, obtaining and preserving the required documentation (e.g., a physician’s letter) is critical. Families should coordinate with healthcare providers to secure written confirmation of incapacity as soon as it is diagnosed, storing it securely with the POA to avoid challenges like those faced in Doolin. A forensic (after the fact) letter or statement of expert evaluation may not suffice either to protect either prior or subsequent decisions.
- Review and Update Estate Plans Regularly: Life changes, such as a new diagnosis or a change in physician, can affect the validity of a springing POA. Seniors should review their POAs and estate plans periodically to ensure they remain effective and reflect current circumstances.
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