Durable power of attorney

Durable Power of Attorney

ADurable Power of Attorney (DPOA) is a legal document that grants an individual, known as the "agent" or "attorney-in-fact," the authority to make decisions on behalf of another person, referred to as the "principal." Unlike a regular power of attorney, a durable power of attorney remains in effect even if the principal becomes incapacitated. This feature makes it a crucial tool in estate planning and healthcare decision-making.

Types of Durable Power of Attorney

There are generally two main types of durable power of attorney:

1. Durable Power of Attorney for Healthcare

This type of DPOA allows the agent to make healthcare decisions for the principal if they are unable to do so themselves. It is often used in conjunction with a living will to ensure that the principal's healthcare preferences are respected.

2. Durable Power of Attorney for Finances

This type of DPOA grants the agent authority over the principal's financial matters. This can include managing bank accounts, paying bills, and handling investments. It is particularly useful for ensuring that the principal's financial affairs are managed if they become incapacitated.

Creation and Legal Requirements

To create a durable power of attorney, the principal must be of sound mind and must voluntarily sign the document. The specific requirements for a DPOA can vary by jurisdiction, but generally include:

• Written Document: The DPOA must be in writing.
• Signature: The principal must sign the document, and it may need to be notarized or witnessed.
• Durability Clause: The document must include language indicating that the power of attorney is to remain in effect even if the principal becomes incapacitated.

Revocation

A principal can revoke a durable power of attorney at any time, as long as they are mentally competent. Revocation should be done in writing and communicated to the agent and any relevant institutions.

Advantages and Disadvantages

Advantages

• Continuity: Ensures that decisions can be made without interruption if the principal becomes incapacitated.
• Flexibility: Can be tailored to include specific powers and limitations.
• Peace of Mind: Provides assurance that the principal's affairs will be managed according to their wishes.

Disadvantages

• Potential for Abuse: The agent has significant power, which can be misused if not carefully chosen.
• Complexity: Legal requirements and implications can be complex, requiring careful drafting and understanding.

Also see

• Power of attorney
• Living will
• Advance healthcare directive
• Guardianship