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Overview
A Durable Power of Attorney (sometimes called
Financial Power of Attorney) is a written document that
gives one or more persons the authority to make personal
and financial decisions for another person when they
cannot act on their own behalf due to absence or
incapacity. The person so designated is commonly
referred to as the "agent" or "attorney-in-fact." With a
power of attorney, the person chooses who will act on
their behalf and defines their authority and its limits,
if any. A durable power of attorney , which may give
temporary or continuous authority, can be limited to a
particular activity (e.g., closing on the sale of a home
on a day when the person is out of town), whereas a
general durable power of attorney is comprehensive and
gives
the appointed person all the powers and rights to act in
a variety of situations. Once signed, a durable power of
attorney remains valid until the maker dies or revokes
the document.
People drafting wills often use the opportunity to plan
for the possibility of their own incapacity. By
preparing a durable power of attorney, they can give
another person of their choosing full legal authority to
act on their behalf should they become unable to handle
their personal and financial affairs. Without a durable
power of attorney, a person's family might need to go to
court to have someone appointed to handle the person's
legal affairs. If a durable power of attorney
is made part of the will, it is essential that the will
be made known to family members before the testator
becomes incapacitated. If a will is kept secret, locked
away in a safe deposit box until a person dies, it will
be too late for the durable power of attorney provisions
to be useful.
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