When does a Durable Power of Attorney for Finances typically become effective?

A Durable Power of Attorney for Finances is designed to remain effective even if the principal becomes incapacitated. Typically, it becomes effective upon a triggering event, which is often the incapacitation of the principal. This allows for the appointed agent to manage the financial affairs of the principal seamlessly during periods when the principal may not be able to make decisions for themselves, ensuring that their interests are protected.

While some powers of attorney may become effective immediately upon signing or may require court approval to become valid, a durable power of attorney specifically provides its durability in the face of the principal's incapacity, which aligns with the correct answer being related to a triggering event like incapacitation.