A Durable Power of Attorney is a legal document in which you designate a person(s), called an Agent, to assist you (not replace) with your financial affairs either now, or when you are incapacitated.
You can only execute a Durable Power of Attorney if you are competent, and if you understand what you are signing. You can revoke your Durable Power of Attorney, and it expires upon your death.
You need a Durable Power of Attorney to make sure that you have someone who can manage your financial affairs in the event that you cannot.
By having a properly drafted Durable Power of Attorney you could avoid having the court appoint a conservator for you, and in many cases, you can avoid having a guardian appointed for you as well.
If you do not have a Durable Power of Attorney, then court proceedings will be held so that the judge can appoint a conservator for you. This process takes time and it is costly.
You decide what your Agent can and cannot do by giving your Agent certain powers.
You can give your Agent very limited powers, or you can give your Agent a broad range of powers. Some of the powers are:
- Manage your real and personal property
- Manage your contracts
- Make gifts
- Support of your dependents
- Banking Powers
- Manage your taxes
- Commence legal actions
- Manage your business interests
- Borrow money
- Manage your debts and expenses
- Manage your investments
- Manage your digital assets
- Pet Care