What is a durable power of attorney? Young and old there is the fact that due to an accident or illness we may become incompacitated, and unable to make decisions, in that case we need a trustworthy person to act on our behalf....
The Principal is the person granting the power of attorney to another person. The agent is the one accepting the responsibility to act on behalf of the principal. Power of attorney is a written document that gives one person the right to act on the behalf of another with binding decisions.
The individual or agent accepting the power of attorney for another, must be a person who can be trusted by the principal and the principal must be of sound mind when granting this right of power of attorney.
Ordinary power of attorney and durable power of attorney are two types. Ordinary power of attorney is in effect only as long as the principal is of sound mind. Durable power of attorney will still be in effect even if the principal becomes incompetent
Durable power of attorney may be presented in two ways, according to the laws of your state. "Springing," power of attorney only becomes effective if the principal becomes incompetent. The other option "ordinary durable power of attorney" is to go into effect right away after it is executed and remains in effect during times of competence and incompetence. Only specific States allow the "springing" power of attorney.
There are situations when durable power of attorney is very important, for example, due to illness such as a stroke or Alzheimer's disease an individual has lost the capacity to make decisions. If a person has not been appointed in advance, (before the capacity to make decisions has been lost,) a durable power of attorney, then he or she may be the subject by appointment of a guardian or conservator. In this case, you have lost the right to choose.
You may choose any proficient adult to be an agent, and a substitute should be chosen is case the main agent is unable to act due to illness or death. In addition, more than one agent may handle different parts of your business. A person who is very good in business affairs may handle that area and your wife or another family member may make other choices for you, perhaps knowing more certainly what your wishes would most likely be. The rolls of each must be clearly defined.
Sometimes religious institutions, or lawyers, will act as agents, if there is no one to appoint. It is of great importance to trust the agent you choose.
The agent must be capable of assuming high legal standards, of honesty and trust on behalf of the principal. This relationship is called "fiduciary" and it is a position of total dependence and trust, choose wisely.
It is imperative that the agents keep good records at all times as to any transactions done on the principal's behalf. Investments should be wise and without risk and within the scope of your estate. Only if the principal is incompetent should the agent act without his or her's (the principal's) direction.
Use a lawyer to draft a power of attorney or durable power of attorney. These papers allow another to have, in some cases unlimited authority to handle your affairs. Grant only the powers you fully intend that person to have and no more using a legally binding document.
