Benefits And Uses Of A Durable Power Of Attorney

Not all of estate planning is planning for the event that you pass away. That’s why it’s called estate planning, and not death planning. It’s a way to plan for, and take care of your estate, even when you are still here. And one of the most important tools in an estate planning arsenal, could well be the durable power of attorney.

What is a Durable Power of Attorney?

A durable power of attorney appoints someone (who doesn’t have to actually be an attorney, despite the name) to handle all of your affairs in the event that you are unable to do so for yourself, or upon the occurrence of a situation that you designate in advance.

The power of attorney allows the person designated, called the agent, to make any and all decisions that you could make for yourself.

There are general powers of attorney which give the designated agent any and all power over every life decision in all aspects of your life, but they can also be limited—for example, someone may have a durable power of attorney just for financial decisions, or just for healthcare decisions.

Dividing the Designated Agents

You may want to split up your powers of attorney, perhaps having a friend with more financial savvy handle your financial affairs, and having a close family member be the agent for your healthcare decisions. You can get very specific, appointing different people to make decisions about your business, or about only certain bank accounts.

No Incapacitation Necessary

You can have a power of attorney, and have the designated agent make decisions for you even if you are fully capable of doing so by yourself. For example, someone may be out of the country for an extended period of time, and may need someone here to manage his or her affairs.

Or, you may have a medical procedure coming up and may be mentally capable of managing your affairs, but not physically capable, and thus, you may want to designate an agent.

You Maintain Your Rights

You do not lose any of your rights, when a power of attorney is drafted and in effect. You are just “loaning” your rights temporarily to someone else, and you can withdraw the power of attorney at any time (assuming you are mentally competent to do so), or the power of attorney can have a stated time period or event that will automatically terminate its effectiveness.

A power of attorney is not like a full guardianship, where a court determines that someone can no longer handle their own affairs, and thus, loses the legal right to do so. In fact, no court action or approval is necessary for a durable power of attorney to be executed or to be effective.

Call the Torrance probate will and estate attorneys at Samuel Ford Law today to learn about all the tools that can help you in your estate plan.

Sources:

occourts.org/self-help/self-help-probate/medical-financial-end-life/power-attorney

tularecounty.ca.gov/lawlibrary/forms/power-of-attorney/