What is a Durable Power of Attorney?
A Durable Power of Attorney (DPOA) is a legal document that allows you to appoint someone you trust (called an "agent" or "attorney-in-fact") to manage your financial affairs and make decisions on your behalf. Unlike a standard Power of Attorney, it remains effective even if you become mentally incapacitated.
How is a Durable Power of Attorney different from a general Power of Attorney?
The main difference lies in its durability. A general Power of Attorney becomes invalid if you become incapacitated. In contrast, a Durable Power of Attorney is specifically designed to stay in effect if you lose the ability to make decisions for yourself, ensuring that your affairs can still be managed according to your wishes.
Why do I need a Durable Power of Attorney?
Having a DPOA in place is crucial for ensuring that your financial matters are taken care of if you're unable to do so yourself due to illness, injury, or any other reason. It helps in avoiding the potentially costly and time-consuming process of having a court appoint a guardian or conservator to manage your affairs.
Who should I choose as my agent?
It's important to choose someone you trust completely as your agent since they will have authority to manage your finances and legal matters. Most people select a close family member or a trusted friend. Consider their ability to manage finances and their willingness to take on the responsibility.
Can I revoke or change my Durable Power of Attorney?
Yes, as long as you are mentally competent, you can revoke or change your DPOA at any time. To do so, you should inform your current agent in writing and provide a copy of the revocation to anyone who was given the original DPOA. If you're appointing a new agent, you'll need to complete a new DPOA form.
What happens if I don't have a Durable Power of Attorney and I become incapacitated?
Without a DPOA, if you become unable to manage your affairs, a court may need to appoint a conservator or guardian to make decisions on your behalf. This process can be lengthy, costly, and stressful for your family and may not reflect your personal wishes.
How can I ensure my Durable Power of Attorney is legally valid?
To ensure your DPOA is legally valid, make sure to complete the form in accordance with your state's laws, which may require witnessing, notarization, or both. It's advisable to consult with a legal professional to ensure the document meets all legal requirements and accurately reflects your wishes.
Does a Durable Power of Attorney allow my agent to make healthcare decisions for me?
No, a Durable Power of Attorney is typically limited to financial and legal decisions. If you wish to appoint someone to make healthcare decisions on your behalf, you should complete a separate document known as a Healthcare Power of Attorney or an Advance Healthcare Directive.