What is a Durable Power of Attorney?
Before We Dive Into Durable Powers of Attorney, Let's Talk About Powers of AttorneyA power of attorney (POA) is a legal document that gives one person (the "agent") the authority to act on behalf of another person (the "principal") in financial and legal matters. This can be useful if the principal is unable to make decisions for themselves, such as due to illness or disability.Now, Let's Get Specific: What's a Durable Power of Attorney?A durable power of attorney (DPOA) is a special type of POA that remains in effect even if the principal becomes incapacitated. This means that the agent can continue to act on the principal's behalf even if they are unable to understand or communicate their wishes.Why is This Important?DPOAs are essential for ensuring that your wishes are respected and your affairs are handled according to your instructions, even if you are unable to do so yourself. Without a DPOA, your loved ones may have to go through a costly and time-consuming process to obtain legal guardianship over you.
Introduction
A durable power of attorney (DPOA) is a legal document that gives one person (the "agent") the authority to make decisions on behalf of another person (the "principal") in the event that the principal becomes incapacitated. This can be a very important document, as it allows the principal to ensure that their wishes will be respected, even if they are unable to communicate them themselves.There are many different types of DPOAs, each with its own specific purpose. Some of the most common types of DPOAs include:* Financial DPOA: This type of DPOA gives the agent the authority to make financial decisions on behalf of the principal, such as managing their bank accounts, paying their bills, and investing their money.* Healthcare DPOA: This type of DPOA gives the agent the authority to make healthcare decisions on behalf of the principal, such as consenting to medical treatment and making end-of-life decisions.* General DPOA: This type of DPOA gives the agent the authority to make any and all decisions on behalf of the principal, including both financial and healthcare decisions.What are the Benefits of a Durable Power of Attorney?
There are many benefits to creating a durable power of attorney, including:* Peace of mind: Knowing that someone you trust has the authority to make decisions on your behalf can give you peace of mind, especially if you are concerned about becoming incapacitated.* Protect your assets: If you become incapacitated without a DPOA, your assets may be vulnerable to being seized by creditors or mismanaged by family members. A DPOA can help to protect your assets and ensure that they are used according to your wishes.* Avoid guardianship: If you become incapacitated without a DPOA, your loved ones may have to go through a costly and time-consuming process to obtain legal guardianship over you. A DPOA can help you to avoid this by giving your agent the authority to make decisions on your behalf without the need for guardianship.What are the Drawbacks of a Durable Power of Attorney?
There are also some potential drawbacks to creating a durable power of attorney, including:* Choosing the wrong agent: It is important to choose an agent who you trust implicitly and who you believe will act in your best interests. If you choose the wrong agent, they could abuse their power and make decisions that are not in your best interests.* Agent misconduct: Even if you choose a trustworthy agent, there is always the potential for them to engage in misconduct, such as stealing your money or making decisions that are not in your best interests.* Fraud: There is also the potential for fraud when it comes to DPOAs. For example, someone could forge your signature on a DPOA or trick you into signing a DPOA without understanding what you are signing.How to Create a Durable Power of Attorney
If you are considering creating a durable power of attorney, it is important to speak to an attorney. An attorney can help you to understand the different types of DPOAs and choose the one that is right for you. They can also help you to draft the DPOA and ensure that it is valid.When to Revoke a Durable Power of Attorney
If you change your mind about having a DPOA, you can revoke it at any time. You can do this by writing a letter to your agent stating that you are revoking the DPOA. You should also send a copy of the revocation letter to any third parties who have been given a copy of the DPOA.What Happens if the Principal Becomes Incapacitated?
If the principal becomes incapacitated, the agent will have the authority to make decisions on their behalf. The agent's authority will continue until the principal dies or regains capacity.What Happens if the Agent Becomes Incapacitated?
If the agent becomes incapacitated, the principal's authority will end. The principal will then need to appoint a new agent.Conclusion
A durable power of attorney is a powerful legal document that can help you to protect your assets and ensure that your wishes are respected, even if you become incapacitated. However, it is important to understand the potential benefits and drawbacks of a DPOA before creating one. If you are considering creating a DPOA, it is important to speak to an attorney.Disclaimer
The information provided in this article is for general informational purposes only and should not be construed as legal advice. It is important to consult with an attorney to discuss your specific situation and needs.