What is a durable general power of attorney?
A durable general power of attorney is a legal document that allows you (the principal) to appoint another person (the agent) to conduct your business affairs. This document is particularly helpful in your absence or during a time when you may be physically or mentally unable to conduct your business. Since the document is durable, it will continue to be in force and effective even if you become legally incapacitated. For all real estate transactions, the durable general power of attorney must be recorded in the county clerks office where the property is located.
Simply stated, a power of attorney is a document in which you grant someone you select the ability to take certain actions in your name, just as you could act. The grant does not deprive you of the right to take those actions and it can generally be revoked at any time. The power of attorney avoids the need for guardianship over you in most instances.
A durable general power of attorney is a legal document that allows you (the principal) to appoint another person (the agent) to conduct your business affairs. This document is particularly helpful in your absence or during a time when you may be physically or mentally unable to conduct your business. Since the document is durable, it will continue to be in force and effective even if you become legally incapacitated. For all real estate transactions, the durable general power of attorney must be recorded in the county clerk’s office where the property is located.
A Durable General Power of Attorney allows someone, an “agent,” to manage assets not held in a living Trust. Generally, a “springing” durable general power of attorney that springs into use upon incompetency is preferable to giving an agent an immediate power to manage your assets. This power survives an incompetency, but ends at death. Care must always be taken to select an agent wisely because the agent under this power of attorney has very broad powers. A Durable General Power of Attorney is usually employed along with estate plans based upon a simple Will and estate plans based upon a living Trust because planning for incompetency is just as important as planning to transfer assets at death.
