What is a Durable Power of Attorney?
A durable power of attorney is a form of agency. The person who gives the power is the principal, and the person who receives the power is the attorney-in-fact or agent. Durable in this context means that the agent`s power will survive the principal`s incapacity or disability. As a result, a Durable Power of Attorney can be used as an alternative to guardianship in some states under certain circumstances, provided the principal executed the document before losing capacity. There are two types of Durable Power of Attorney: Financial Durable Power of Attorney and Healthcare Power of Attorney.
You may designate a friend or relative to act on your behalf under a power-of-attorney, which can be specific and limited to a certain task or transaction or may be broad and general and allow the power holder to do almost anything in your best interest. All states provide that a properly drafted power-of-attorney will be effective even after the disability or incapacity of the person who gave the power (a so-called durable power of attorney), and indeed that has become a primary reason to create powers-of-attorney. The power-of-attorney can also prevent problems that arise when the name of another person is added as a joint tenant (or other form of co-owner) to a bank account or other asset as a matter of convenience. What is a Living Will? A Living Will is a legal document that expresses your intention not to be kept alive by artificial means, or by heroic measures. This document should be executed only if you feel comfortable making such a declaration. The document generally also co
A Durable Power of Attorney gives legal authority to a person to act as your agent, or attorney-in-fact. For example, you may direct the agent to write your checks, make bank deposits, manage your investments, or sell your property. It is not affected by your subsequent incapacity and may avoid the need for a court appointed guardian. If you don’t specify that you want the Power of Attorney to be durable, it will automatically end if you later become incapacitated. If you don’t prepare a durable power of attorney and you become incapacitated, your spouse, closest relatives, or companion will have to ask a court for authority over at least some of your financial affairs.
