What is a Durable Power of Attorney?
A Durable Power of Attorney (sometimes referred to as a “POA”) allows you to give another person authority to make legal and financial decisions for you, while you are living. This person is called your “agent.” A POA can give your agent very broad powers, or just specified limited powers. The powers can be made effective immediately, or only effective in the event you become mentally incapacitated or upon some other triggering event. A POA that grants broad powers for financial management to a trusted family member, such as a spouse or responsible child, can be very helpful if an illness or accident makes it difficult or impossible for you to manage your financial affairs.
If you become unable to make your own decisions and do not have a valid POA, your family may need to petition the court to appoint a guardian for you. Depending on your mental state, physicians may need to be consulted for medical opinions and testimony. This process can be time consuming, stressful, expensive, and it may result in someone being appointed guardian who you or your family do not want. For these reasons, a durable POA is an essential part of most estate plans. You can revoke a POA at any time, and it will expire automatically upon your death.
It is important to realize that a Durable Power of Attorney generally does NOT mean that your agent can make medical decisions in addition to legal and financial decisions. Read the Advance Medical Directive section to learn more about appointing someone to make medical decisions.
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Because we believe in the importance of including a Durable Power of Attorney in most estate plans, we offer them at reduced rates as part of all of our estate plans.