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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:
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.