Details About Durable Power Of Attorney
| A durable power of attorney is a legal document that an adult, who is completely sane and capable of making a reasonable decision, can make wherein he appoints another person to handle and manage all his financial affairs. |
The reason it is called durable is because the power of attorney (POA) remains valid even when you become disabled. This is what makes it different from a general power of attorney. However, the agent has to adhere to terms, conditions and guidelines highlighted in the durable POA.
The person who makes the power of attorney is known as the principal and the person he appoints to manage his affairs is known as the agent.
However, if you become disabled without a durable POA, you would need the probate court to appoint someone on your behalf. This is known as guardianship proceedings or conservatorship proceedings. However, opting for this is not only expensive but also time consuming. That is why it makes sense to get a durable POA as soon as possible and not wait for a calamity to happen.
Another advantage of this legal document is that it will ensure that your assets are protected. When a person becomes disabled, he may have to be admitted into a nursing home for long term care. With a durable POA, all the person's assets can be used to pay for the nursing home costs. However, based on the law, a person who has drawn up this legal document can protect half of his assets either through gifting or transference.
When it comes to outlining the agent's duties and responsibilities, it is completely left to you. You can give the agent a lot of room to work or you can limit his or her authority. Usually when it comes to this type of POA, the agent is given ample room to work in your best interests. You can even have more than one agent to look after your financial affairs. You can decide whether they work independently or together. Usually it is better to allow multiple agents to work independently as this helps in avoiding clashes and law suits.
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