Education Center

The Importance of a Durable Power of Attorney

June 16, 2023

A “Durable” Power of Attorney (DPOA) is a legal document that allows you to appoint an individual, known as an “agent” or “attorney-in-fact”, to make decisions on your behalf if you become incapacitated or unable to make decisions for yourself.

It is important to understand the differences between a General Power of Attorney and Durable Power of Attorney. With a General Power of Attorney, the agent (your power of attorney) would lose the ability to make decisions on your behalf should you become incapacitated. However, this limitation does not apply to a Durable Power of Attorney and, should the worst happen, they would still be able to act in your name.  As such, it is essential to understand why having a DPOA can be crucial to protecting your rights and assets.

Here are some of the most important benefits of having a Durable Power of Attorney: 

1. Planning for Incapacity: No one likes to think about the possibility of becoming incapacitated, but it does happen. A DPOA allows you to appoint someone you trust to make decisions on your behalf if you are unable to do so. This can be especially important if you suffer from a sudden illness or an injury that renders you unable to make decisions for yourself. 
2. Continuity and Convenience: A DPOA allow for seamless management of your affairs without the need for court intervention or guardianship proceedings. This can save time, money, and potentially prevent complications due to incapacitation.
3. Protecting Your Assets: If you become incapacitated and do not have a DPOA in place, a court may appoint a guardian to make decisions on your behalf. This person may not be someone you would have chosen, and therefore may not make decisions that align with your wishes. A DPOA allows you to choose someone you trust to protect your assets and make decisions in your best interest. 
4. Maintaining Privacy: When a court appoints a guardian, all your financial and personal information becomes a matter of public record. This can be incredibly invasive, especially if the information is sensitive. With a DPOA, you can keep your financial and personal information private, as only you and your chosen agent will have access to it. 
5. Preservation of Wishes: By selecting a trusted agent, you can ensure that your financial and legal decisions align with your personal values, priorities, and long-term goals even if you cannot express them directly.
6. Avoiding Family Disputes: A properly executed DPOA can help prevent conflicts among family members by clearly designating one individual as the decision-maker, reducing the likelihood of disagreements or legal disputes over who should manage your affairs.

In conclusion, a Durable Power of Attorney is a crucial document that everyone should have in place. It allows you to plan for the possibility of becoming incapacitated, maintain your privacy, avoid court involvement, and potentially save money. If you don’t already have a DPOA in place, it is critically important to speak with your financial advisor and an attorney to start the process of creating an estate plan.