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What Is Durable Power of Attorney?
Date Updated: July 26, 2024
Written by:
Ashlee Shefer is a freelance copywriter, content writer, and digital marketer who specializes in senior care, mental health, health care, and other wellness-related topics. She has one year of experience writing both short- and long-form content related to senior resources, assisted living, nursing homes, and home care, including blog posts, research-based articles, resource guides, product reviews, facility blurbs, finances, and care costs.
A durable power of attorney (DPOA) is a legal document granting an agent permission to make financial or medical decisions on your behalf. A durable POA can go into effect immediately and remains valid even if you become incapacitated, allowing an agent to help with various matters, including estate planning and decision-making during medical emergencies. However, responsibilities vary based on the type of DPOA.
Types of durable power of attorney
There are two types of DPOA. A financial DPOA allows an agent to manage all financial affairs, including paying bills, taxes and professionals to handle your assets. They can also deposit your Social Security checks and monitor bank accounts or investments. Under a medical DPOA, your agent oversees medical care, ensuring you receive services or treatment aligning with your needs. You can provide guidelines for preferences or desires by creating a living will for your agent to follow.
Creating separate documents for finances and medical care can be helpful in preventing confusion. However, you can assign one agent to manage both affairs, unless you prefer having a separate agent for each.
How do you set up a durable power of attorney?
When setting up a DPOA, choose an agent you trust to make well-informed decisions in your best interest. This person will have control over your financial or medical well-being, and it’s imperative they make responsible decisions. Once you’ve chosen an agent, check state requirements for assigning a power of attorney. Every state operates differently, with some requiring witnesses or notaries for document signatures.
Your power of attorney document should include detailed instructions for your needs and preferences. If you need help drafting one, an attorney can provide guidance and recommend other forms you may need to complete. You may also want to list backup agents in case your primary agent becomes incapacitated.
Can you revoke a durable power of attorney?
You can revoke a DPOA at any time if you’re mentally capable of making decisions. Put the revocation in writing and inform your financial institutions, health care providers and other businesses of the change. You can also create a new DPOA appointing another agent, with a provision canceling your prior agent.
In some states, orally disagreeing with your agent’s decisions can revoke their power. However, a written document is recommended to finalize changes. Revoking a DPOA for a loved one is more difficult. If you believe an agent is abusing their power over someone else, you may need to bring them to court for removal.