Can I avoid Living Probate with a durable power of attorney?
A power of attorney is a document in which the “principal” (the person giving the power) gives his or her “agent” (the person who is receiving the power from the principal) the power and authority to conduct financial affairs on behalf of and for the principal. A traditional general power of attorney will not allow you to avoid a Living Probate if you become mentally incompetent, because the agent’s power under the power of attorney ceases upon the disability of the principal. A durable power of attorney, on the other hand, survives the disability of the principal and permits the agent to act on behalf of the principal even though the principal is disabled, thus avoiding a Living Probate. However, an increasing number of financial institutions and other third parties refuse to honor durable powers of attorney, thereby rendering them ineffective for avoiding a Living Probate. Many third parties will challenge the wording in a durable power of attorney, contend that the document is not c
