Nobody likes to think about the day when they might no longer be able to make conscious decisions regarding their finances, healthcare, investments, estate planning, and business transactions. All it takes is a sudden accident or illness to cause you to become unconscious or cognitively impaired. Once that happens, you will need someone trustworthy to oversee the decision-making of all your financial, business, medical, and legal affairs.
What is a Durable Power of Attorney?
A durable power of attorney is a formal legal document that grants another person the authority to manage an individual’s assets, finances, business transactions, and healthcare decisions if the individual is unable to make those decisions for themselves. The individual who creates the durable power of attorney to transfer authority over their assets and affairs is called the “principal,” whereas the recipient of this authority is the “agent.”
Of course, not all powers of attorney are the same. A durable power of attorney is slightly different than other types of powers of attorney, such as the following:
- General Power of Attorney – The principal grants authority over their financial affairs to the agent while the principal remains competent. Once the principal dies or becomes incompetent, the agent loses authority over the assets. The terms and conditions of this can vary between jurisdictions, but this is usually how a general power of attorney works.
- Medical Power of Attorney – The principal grants authority over their healthcare decision-making to the agent if the principal becomes incapacitated or ill. The principal may specify the decisions that the agent is authorized to make on their behalf in such severe medical situations.
- Limited Power of Attorney – The principal grants authority over specific assets, tasks, or decisions to the agent for a fixed amount of time. Once a particular task or time limit has been completed, the agent loses the authority.
- Springing Power of Attorney – The principal selects a particular time to grant authority to the agent, such as when the principal is physically unavailable to fulfill a specific task. Once the principal becomes physically available again, the agent loses the authority.
A power of attorney differs in that it takes effect after the principal has been involuntarily incapacitated or deemed incompetent. Until that happens, the principal usually retains control over their finances and assets. Other forms, such as a general power of attorney, are automatically revoked if the individual becomes incapacitated or loses their mental capacity.
Therefore, a durable power of attorney is essential to prepare before a potential accident or illness renders you incapacitated or incompetent. It will ensure all your personal and business affairs are being taken care of by somebody you trust.
How a Durable Power of Attorney is Drafted
Any individual wishing to create a durable power of attorney can utilize the services of a professional online legal document creator, such as PowerofAttorney.online. Since the power of attorney laws and guidelines are different in each state, you’ll need to fill out accurate and updated durable power of attorney forms. You can always find these forms available on PowerofAttorney.online to fill out, print, and download from your computer.
Here are the basic steps involved in drafting and enforcing a durable power of attorney:
1) Find a Trustworthy Person
The first step is to choose a trustworthy person to be your agent. Consider those in your personal or professional inner circle with whom you have close relationships, such as a family member, friend, or business associate. Discuss with them the role in which you would like them to play as the agent of your assets and affairs.
2) Begin the Power of Attorney Form
Visit PowerofAttorney.online to find a suitable free template for the durable power of attorney form. Begin by filling out the form, specifying the names and contact information of the principal and agent.
3) Specify the Agent’s Role and Power
Here is the most crucial step. As the principal, you must specify the specific powers and responsibilities over your finances and affairs that you would like to grant to the agent. These powers could encompass authority over business transactions, financial assets, tax obligations, property management, healthcare decisions, and other related matters.
4) Specify the Agent’s Limitations (if any)
You may also want to set limitations on the agent’s power and the compensation you have agreed to give them. These limitations will ensure the agent doesn’t try to abuse their power by taking actions beyond what you wanted them to do in the event of your incapacity.
5) All Triggering Conditions
What will trigger the durable power of attorney for the agent? What date and time will it go into effect? As stated previously, the incapacity and mental incompetence of the principal are the typical triggers for a durable power of attorney.
However, you may want to specify an alternative trigger or a continuation of the power of attorney if you, the principal, die. Articulating these specific conditions will ensure your agent has the power under the circumstances in which you desire them to have it.
6) Successor Agents (if any)
Do you have any other agents in mind if something were to incapacitate your primary agent? If so, you may specify successor agents to your primary agent on the durable power of attorney form.
Once again, choose successors who are trustworthy and reliable. Specify their roles, powers, and limitations as you did for the primary agent.
7) Sign and Notarize
When you finish filling out the durable power of attorney form, both the principal and agent must sign it in the presence of a certified notary in your jurisdiction. Your state may also require two witnesses to sign the form after the principal and agent sign it. Then, the notary will sign and stamp the form with the official notary seal to authenticate it.
Create Your Durable Power of Attorney Today!
Are you ready to create your durable power of attorney form? PowerofAttorney.online aims to help individuals and businesses create legal documents for various commercial and judicial purposes. It offers a fast and free way to write and print your durable power of attorney form online.
