What is a Statutory Durable Power of Attorney, and how can it help me?
Because of its many uses and the powers it gives the agent, the Statutory Durable Power of Attorney is the second most important document to include in any estate plan, after a properly drafted Will. A power of attorney is a written document that enables the client, known as the principal, to designate a holder of the power, known as the attorney-in-fact or agent, to act on the principal’s behalf with regard to business matters. The agent has the power to act on behalf of the principal only with respect to powers specifically enumerated in the document. The document makes it possible for the principal’s financial affairs to continue without interruption due to incapacity, and, therefore, it allows the principal to avoid a guardianship proceeding. In September 1993, the Texas Legislature created a standardized form which is shorter than its predecessor and easier to execute since no witnesses are required. It was hoped that more financial institutions would be more willing to accept the
