Final answer:
The idea that incapacitation is needed for power of attorney to be effective is false. Power of attorney arrangements can be immediate or activate upon certain conditions, such as incapacitation. The necessary and proper clause does not limit but expands the power of the national government.
Step-by-step explanation:
The statement that a principal needs to be incapacitated for power of attorney to kick in for finance is false. Power of attorney can be enacted without the requirement of incapacitation, depending on how the document is drafted.
A principal can grant an immediate power of attorney, allowing the agent to act on their behalf immediately, or they can create a springing power of attorney, which does only become effective upon the incapacitation of the principal.
It is essential for the document to clearly define the terms and conditions under which the power of attorney becomes effective.
As for the reference to the necessary and proper clause, the statement that it has the effect of limiting the power of the national government is false.
The necessary and proper clause, also known as the elastic clause, actually grants Congress the power to pass any laws deemed necessary and proper for carrying out its enumerated powers, thereby generally expanding its authority rather than limiting it.