As we age, our ability to manage our finances and make critical decisions can become compromised. Accidents, illness, and unexpected events can also leave us unable to make our own decisions. That’s why a durable power of attorney is so important.

What is a Durable Power of Attorney?

A durable power of attorney (DPOA) is a legal document that allows you to appoint someone to act on your behalf if you become incapacitated or unable to make decisions. The person you appoint is called your agent or attorney-in-fact. They will have the legal authority to manage your finances, pay bills, and make other vital decisions on your behalf.

Why Do You Need a Durable Power of Attorney?

Without a durable power of attorney, your loved ones may need to go to court to obtain guardianship or conservatorship to manage your affairs if you become incapacitated. This can be a lengthy and costly process, and it may result in something other than the person you would have chosen to manage your affairs being appointed.

Having a durable power of attorney in place can also help you avoid financial abuse or exploitation. Your agent is legally required to act in your best interests, and you can specify the scope of their authority in the document. You can also appoint a successor agent if your first choice is unable or unwilling to serve.

What Should You Include in Your Durable Power of Attorney?

When creating a durable power of attorney, you should work with an experienced attorney to ensure it meets your needs and complies with state law. Some important considerations include:

• Who you want to appoint as your agent and successor agent.
• The scope of your agent’s authority.
• Any limitations or restrictions on your agent’s authority.
• Whether you want your agent to have the power to make healthcare decisions on your behalf.
• Whether you want your agent to have the authority to make gifts or change your estate plan.
• How your agent should handle your finances, pay bills, and manage your assets.

It’s also important to periodically review and update your durable power of attorney as your circumstances and preferences change.

A durable power of attorney is an essential tool for anyone who wants to ensure their wishes are respected, and their affairs are managed in the event of incapacity. By working with an experienced attorney to create a DPOA that meets your needs, you can have peace of mind knowing that your finances and decisions are in good hands. Contact The GC Law Firm today to learn more about creating a durable power of attorney.