What Is A Durable Power Of Attorney

A durable power of attorney is a legal document that grants the named attorney-in-fact authority to act on behalf of the person for whom the durable power of attorney is drafted. Having worked at a law firm and participated in a lot of estate planning, I can tell you that a durable power of attorney is a serious document and not something to enter into without a lot of consideration.

The most important aspect and biggest decision you will have to make when considering getting a durable power of attorney is who you will name as your attorney-in-fact. This person will have the authority to manage your banking accounts, open accounts in your name, dispose of your assets, and even sell your home. Many states require that a person have authority under a durable power of attorney for homestead property before they could sell someone's home. You should speak with a licensed attorney in your state to find out if this is a requirement in your area or not.

In my experience in the legal world I have seen many situations in which having a durable power of attorney was very necessary. Many times I receive calls from clients who are in the throes of a personal tragedy and immediately need a durable power of attorney drafted or a copy of one they already have in place. These situations are difficult to witness but having important legal documents in place can make them much easier to manage for the people involved.
If you do not have a family member or loved one who you want to serve as your attorney-in-fact, you may name a financial institution to act on your behalf. Many people with larger estates often have their personal attorney or a financial institution act as their attorney-in-fact to make sure that their assets are managed well. A durable power of attorney does not necessarily tell your attorney-in-fact how you want your assets managed during your life and especially following your death.
To ensure that your wishes are respected concerning how your assets will be disposed of following your death you should have a trust implemented or a detailed will drawn up. Remember that a durable power of attorney only grants authority to the person you name as your attorney-in-fact to manage your assets and does not specify how you want them managed. You will need to execute another legal document such as a trust or will if you have specific provisions you want followed after your death.