Durable Power of Attorney: An Overview
Introduction
A Durable Power of Attorney (DPOA) is a legal document that allows the grantor to designate another person or organization (the “agent”) to act on their behalf in the event that the grantor becomes incapacitated. This document is created to protect the grantor’s interests in the event of an extended illness or disability. It is important to note that the DPOA does not grant the agent the authority to make decisions concerning the grantor’s health care.
Scope
A DPOA is a powerful document that grants the agent broad authority, including the ability to make decisions about the grantor’s finances, manage their investments, and access their bank accounts. The document is typically drafted to provide the agent with the same legal powers as the grantor has, which allows the agent to enter into contracts, sell or transfer property, and make investments on the grantor’s behalf. The document also specifies the powers that the agent can exercise and the duration of the power of attorney.
Types of DPOA
There are two main types of DPOA: a general durable power of attorney and a specific durable power of attorney. The general durable power of attorney grants broad powers to the agent to conduct any transaction the grantor could conduct. A specific durable power of attorney, on the other hand, grants the agent the authority to conduct specific transactions. For example, the agent may be authorized to sell a particular property or to manage a particular bank account.
Requirements
In order for a DPOA to be valid, it must meet certain requirements. The document must contain the grantor’s name, address, and signature, and must be witnessed and/or notarized. The document must also comply with state laws, which vary from state to state.
Conclusion
A DPOA is an important legal document that grants the grantor’s designated agent the authority to act on the grantor’s behalf in the event of their incapacitation. It is important to understand the scope and requirements of the document and to ensure that it meets the requirements of the state in which the grantor resides.
References
Cummings, E. (2019). What Is Durable Power of Attorney?. Retrieved from https://www.investopedia.com/articles/personal-finance/090815/what-durable-power-attorney.asp
Lane, L. (2020). Durable Power of Attorney: What Is It and When Should You Use It?. Retrieved from https://www.nerdwallet.com/blog/finance/durable-power-of-attorney/
Nolo. (2021). Durable Power of Attorney: What It Is and How to Get One. Retrieved from https://www.nolo.com/legal-encyclopedia/durable-power-attorney-what-how-get-one-29779.html
U.S. Legal Forms, Inc. (2021). Durable Power of Attorney. Retrieved from https://www.uslegalforms.com/powerofattorney/