Power of Attorney

Durable Power Of Attorney

Learn here what the term “durable power of attorney” means and when the best time to get a durable power of attorney is.

A durable power of attorney is a power of attorney that can take immediate effect as soon as it is signed. This type of power of attorney can come in very handy for elderly people who know that something big is about to happen that can affect how they manage their estate, or their accessibility to management. This could include situations such as a person who is experiencing the first signs of Alzheimer’s Disease, or a person who is about to go into a nursing home.

A durable power of attorney continues to be in effect until the principle (the person who creates the durable power of attorney) either revokes it or dies. Once they become incapacitate, there is no need to make any additional changes to the document. This is why it is known as a durable power of attorney. The two main types of durable powers of attorney are:

Financial Durable Power of Attorney

A Financial Durable Power of Attorney gives another person (of your choice) full legal authority to sign your name on your behalf and manage all finances for any assets which are not owned by the trust, in the event that you become incapacitated. Your revocable living trust gives your successor trustee, or surviving spouse, Financial Powers of Attorney of all assets owned by the trust.

You should own some certain assets outside of your revocable living trust (for tax purposes), for example: IRA’s, annuities and pension plans. Because these items are not owned by the trust, your successor trustee does not have the power to deal with them. The Financial Durable Power of Attorney will name an Attorney-in-Fact to make decisions about these assets.

Health Care Durable Power of Attorney

Health Care Durable Power of Attorney gives someone else the authority to make all necessary health care decisions for you, if you are not able to make these decisions yourself. Health Care Durable Power of Attorney comes into affect when you are terminally ill or become incapacitated. Whoever you have named as your Attorney-in-fact should have wide-ranging powers over your health care decisions.

Unless you say otherwise, your Health Care Durable Power of Attorney gives the person you select the ability to authorize an autopsy after you die and donate your body or parts for transplant, therapeutic, educational or scientific purposes.

It also gives the person the power to decide what happens to your remains after you die. Someone can only make these decisions for you if they have Power of Attorney, if you are unconscious or incompetent and no one has been set as your Attorney-in-fact, the courts will make decisions on your behalf.

As you can see, it is very important to consider a durable power of attorney for managing your estate in the event that you can’t. While no one likes to believe that they will ever become incapacitated, it does happen, and it is better to become incapacitated when someone who loves you is the one taking care of all your belongings, finances, and your health rather than someone a court appointed.