What is a General Durable Power of Attorney?
A General Durable Power of Attorney (“POA”) for finances is a document in which you nominate an Agent to handle your non-health care affairs in the event that you become incapacitated or unable to do so yourself. The POA gives your agent the power to buy and sell assets, file tax returns, and make gifts for specific purposes, all on your behalf.
Typically, our law firm will retain your completed POA until your instruct us to release it to your agent. Once the executed document is given to your agent, he or she will immediately have the power to act on your behalf. At that point your agent will be able to sign legal and financial documents for you simply by signing his or her own name, followed by the words “Agent for John Smith” or “Attorney in Fact for John Smith.”
Although the POA gives your agent the authority to conduct your financial affairs while you are disabled, their authority terminates upon your death. At that point your other estate planning documents go into effect.
Why Should You Prepare a General POA?
A Durable Power of Attorney (“POA”) allows you to designate an Agent who will be legally authorized to manage your property and financial affairs in the event that you become incapacitated or disabled.
If you don’t have a properly drafted Power of Attorney, someone close to you would have to apply to the Probate Court to appoint a Guardian or Conservator on your behalf if you are disabled. The process of obtaining guardianship through the court can be expensive and time-consuming; not to mention, it can be emotionally draining for your family.
With a well-drafted POA for financial decisions, your family won’t have to go to court to help you with your affairs.