What is it and what does it do? A competent, responsible adult should consider having a Durable Powers of Attorney. This legal document allows a person (the Principal) to appoint another person or organization (the Agent or Attorney-in-fact) to act on his or her behalf in all matters designated in the document. Any person choosing to create a Powers of Attorney must be competent – able to understand the consequences of the power of attorney – in order to establish the document. The Powers of Attorney is a document and not a person. The person that is appointed in the document is an agent or an attorney-in-fact.
There are two kinds of Powers of Attorney to consider. A Medical or Health Care Durable Power of Attorney includes only medical decision-making authority and may be limited or broad in scope. The second type, a Durable Power of Attorney for Property, includes financial and property decisions and may also be limited or broad.
Durable simply means the agency continues if the principal becomes incapacitated. A power of attorney is durable if it has the appropriate wording within the document. Keep in mind that the principal may change or revoke a durable power of attorney at any time. Additionally, an agent may not be able to override the principal’s wishes even if the principal is assessed as incapacitated.
Do you have more questions about Durable Powers of Attorney? A Golden Financial Services Advisor is always available to answer any planning questions or concerns you may have. Please note that we are financial advisors and not attorneys and we do not authorize the use of this information as a substitute for legal advice. Sign up today for our FREE Bronze Membership and receive a discount on our consulting fees.