A Durable Power of Attorney appoints another responsible person to act for you in your personal and financial affairs, except for matters covered by your Living Will and Health Care Power of Attorney, Depending on your situation, it can become immediately effective or become effective only in the event of your incapacity.
A Power of Attorney is revocable by you at any time before that incapacity. This means you can change your mind about your agent or any other provision of the Durable Power of Attorney before you are incapacitated by having a new Durable of Attorney prepared.
For those who do not currently need help with their finances and other affairs of life, the Power of Attorney should generally take effect only upon incapacity. For those already needing help managing their affairs, one that becomes immediately effective may be advisable.
With a Power of Attorney, you name an Agent and list the powers that person will have to conduct business for you. What makes it a Durable Power of Attorney is a provision that says it will remain in effect or become effective in the event of your incapacity, such as from an accident or illness. Note that, if the Agent is not an ancestor, spouse or descendant of the Principal, the Power of Attorney must expressly provide for the non-familial Agent to exercise power on the Principal’s behalf.
Agency under a Power of Attorney
An agent named in a Durable Power of Attorney must act with due care and in good faith while exeerting its powers for the benefit of the Principal during the time the Power of Attorney is in effect. A Principal may be grant the following powers, among others, to their Agent:
- Pay bills
- Recover payment for debts owed to the Principal
- Prepare and sign a tax return
- Purchase and sell real property
- Purchase and sell tangle person property
- Transact banking, stock transaction, securities, or retirement fund business
- Make gifts
- Exercise fiduciary powers which the Principal has the power to delegate
- Arrange admission to a medical, nursing, residential, or other facility
You can also include a provision asking the Court to appoint your Agent as Guardian of your person and estate in the event of your permanent incapacity. A Durable Power of Attorney is only effective during your life, which is why you also need a Will .
Call or email us today to make an appointment to have us draft a Durable Power of Attorney, Living Will, Health Care Power of Attorney and Will.