When SP is transferred to another SP, what is typically due unless transmutation occurs?

When SP is transferred to another SP, what is typically due unless transmutation occurs?

• A. Reimbursement to the transferring SP.
• B. No reimbursement due.
• C. A court fee.
• D. A tax reassessment.

Answer: (A)

When a special power of attorney is passed to a new SP, the person who originally acted typically has incurred necessary, out-of-pocket expenses in carrying out the task. The principal is expected to reimburse those reasonable costs to the transferring SP, so that the agent isn’t left bearing the expense of fulfilling the authority. This reimbursement is the usual rule unless the instrument creates a different arrangement by transmutation. So the best answer is that reimbursement to the transferring SP is due.

When a special power of attorney is passed to a new SP, the person who originally acted typically has incurred necessary, out-of-pocket expenses in carrying out the task. The principal is expected to reimburse those reasonable costs to the transferring SP, so that the agent isn’t left bearing the expense of fulfilling the authority. This reimbursement is the usual rule unless the instrument creates a different arrangement by transmutation. So the best answer is that reimbursement to the transferring SP is due.