What Most People Don't Know About Durable Powers of Attorney

Though you are likely in good health now and can handle your own financial transactions and health care decisions, there is always a chance you could lose that ability. It could happen suddenly, as with a car accident, or gradually, as with dementia. Planning for the possibility of incapacity is an important part of estate planning.

In creating an estate plan, your attorney will ask you to nominate people you trust to make financial and health care decisions on your behalf if you ever become unable to do so. Your completed estate planning packet will likely include two different documents addressing these decisions: one document will be for legal and financial matters and the other for medical treatment decisions. These documents are both power of attorney documents.

A power of attorney (POA) is a legal document that allows an individual (known as the principal) to give another person (their agent or attorney-in-fact) the authority to act on their behalf. Though many people are familiar with the general concept of POAs, not everyone understands the different types of powers of attorney and how they work, especially with regard to durable powers of attorney.

What Is a Durable Power of Attorney?

A durable power of attorney (DPOA) is a POA that remains valid even if the principal becomes incapacitated (unable to make or communicate decisions for themselves). The word “durable” refers to its endurance through someone’s loss of capacity. Without this durability, the authority your agent has would end if you became unable to make your own decisions.

Durable POAs are commonly used in estate planning, health care planning, and financial management. They give family members and trusted individuals the legal authority to step in when needed without having to go through lengthy court proceedings. Because the agent may have broad powers, choosing the right person is crucial. Abuse of POA authority does happen, so it’s best to select someone trustworthy and, if possible, have checks and balances in place.

Takeaways

• A durable power of attorney is a legal document that allows a trusted individual to make financial or health care decisions on your behalf even if you become unable to handle your own affairs.

• This document provides long-term safeguards, ensuring your affairs are managed without court intervention.

If you’d like to discuss creating a durable power of attorney or an estate plan tailored to your needs, contact Feldman Law Group today to schedule a consultation or call (925) 208-4543. Our experienced team can guide you through every step to ensure your wishes are fully protected.