WHAT IS DURABLE POWER OF ATTORNEY?
DURABLE POWER OF ATTORNEY authorizes someone, called “attorney-in-fact” or “agent” to have power over assets held in someone’s name personally for assets not held in a revocable trust. There are a general power covering all of a someone assets and limited to a limited assets or specific time. If you get incapacitated DURABLE POWER OF ATTORNEY PREVENTS the need to establish a Conservatorship to control the Estate.
The first provision for a Durable Power of Attorney for Financial Affairs is
to name the primary agent(s) and alternate agent(s), if any, to act in the
place of the Principal (the person making the Power of Attorney).
Usually, the first person named is the person’s spouse, followed by the same
people fulfilling the role of Successor Trustee. However, this is not always the case, such as when a spouse is suffering from the onset of senile dementia or Alzheimer’s. Also, the agent(s) and alternate agent(s) can be different people from the Successor Trustees.
The difference between power of attorney and durable power of attorney is that the later will continue in place when the person becomes incapacitated. The power of attorney which in nor ” durable ” take place as soon as it signed and ended as soon as person get incapacitated.
Durable power can be financial only or enable person to make a medical decision for the principal.
HERE ARE SOME COMMON EXAMPLES FINANCIAL POWERS OF ATTORNEY
Real and Personal Property
Motor Vehicles Stock
Bond Transactions Financial Institutions (bank/investment accounts)
Insurance/Annuities
Beneficial Interests
(in another trust,probate estate, etc.)
Electronic Communications /Digital Assets
Retirement Plans and Benefits Claims and
Litigation
Tax Matters /Governmental
Benefits
Resignation From
FIDUCIARY DUTY
In any event, the agent who is acting under a Power of Attorney have a “fiduciary duty” to the Principal, meaning that he must act in the best interests of the Principal.
