What is a Durable Power of Attorney?
A Durable Power of Attorney is a legal document that allows an individual, known as the principal, to appoint another person, known as the agent or attorney-in-fact, to make financial and legal decisions on their behalf. The term “durable” means that the power of attorney remains in effect even if the principal becomes incapacitated or unable to make decisions for themselves.
Who can create a Durable Power of Attorney?
Any competent adult can create a Durable Power of Attorney. It is important to choose an agent who is trustworthy and capable of making important decisions on your behalf. The agent should also be someone who understands your wishes and will act in your best interests.
What powers can be granted in a Durable Power of Attorney?
The powers granted in a Durable Power of Attorney can vary depending on the specific language of the document. Some common powers that can be granted include the ability to manage bank accounts, pay bills, buy or sell property, make investment decisions, and make healthcare decisions. It is important to clearly outline the powers granted in the document to avoid any confusion or disputes.
How does a Durable Power of Attorney differ from a regular Power of Attorney?
A regular Power of Attorney becomes invalid if the principal becomes incapacitated or unable to make decisions. In contrast, a Durable Power of Attorney remains in effect even if the principal becomes incapacitated. This is an important distinction, as it allows the agent to continue making decisions on behalf of the principal when they are no longer able to do so themselves.
When does a Durable Power of Attorney go into effect?
A Durable Power of Attorney can go into effect immediately upon signing, or it can be set to go into effect only if the principal becomes incapacitated. This is known as a “springing” Durable Power of Attorney. The document should clearly state when the powers granted to the agent will become effective.
How can a Durable Power of Attorney be revoked?
A Durable Power of Attorney can be revoked at any time by the principal as long as they are competent to do so. To revoke the document, the principal must notify the agent in writing and any relevant financial institutions or individuals who may have been relying on the power of attorney. It is important to keep a copy of the revocation document for your records and to ensure that all parties are aware of the change in decision-making authority.