My Money, My Rules: A Guide To Creating A Durable Power Of Attorney

A durable financial power of attorney (DPOA) is a legal document that empowers someone you trust (your agent) to manage your financial affairs if you become unable to do so yourself. This could happen due to illness, injury, or other circumstances that affect your mental capacity.

Why is a DPOA Important?

Peace of mind: Knowing you have a DPOA in place can alleviate stress for both you and your loved ones.

Protection of assets: It ensures your financial matters are handled responsibly and in accordance with your wishes.

Avoiding guardianship: A DPOA can help you avoid the potentially costly and time-consuming process of guardianship.

What Does a DPOA Cover?
A DPOA typically covers a wide range of financial activities, including:

Managing bank accounts and investments

Paying bills and taxes

Making real estate decisions (buying, selling, or renting)

Collecting and distributing income

Making gifts

Accessing retirement accounts

How to Create a DPOA
1. Choose your agent: Select someone you trust implicitly to handle your financial affairs.
2. Consult an attorney: A lawyer can help you create a DPOA that meets your specific needs and complies with local laws.
3. Consider your wishes: Think about any limitations or restrictions you want to place on your agent’s authority.
4. Sign and notarize: Once the DPOA is drafted, you’ll need to sign it in front of a notary public.

Additional Considerations

Springing DPOA: This type of DPOA only becomes effective if you are determined to be incapacitated.

Pour-over will: A pour-over will can be used to transfer any remaining assets to your beneficiaries after your death.

Review regularly: It’s important to review your DPOA periodically to ensure it remains current and aligns with your changing circumstances.

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Conclusion
A durable financial power of attorney is a crucial legal document that can provide peace of mind and protect your financial interests. By understanding the importance of a DPOA and taking the necessary steps to create one, you can ensure that your financial affairs are well-managed, even if you are unable to handle them yourself.

FAQs
1. Can I revoke my DPOA? Yes, you can revoke your DPOA at any time while you have mental capacity.
2. What if my agent dies or becomes incapacitated? You can name a successor agent in your DPOA to take over your financial affairs.
3. Can a DPOA be used for medical decisions? No, a DPOA only covers financial matters. For medical decisions, you would need to create a healthcare power of attorney.
4. Is a DPOA the same as a living will? No, a living will expresses your wishes regarding end-of-life care, while a DPOA deals with financial matters.
5. Can I use a generic DPOA template? While it’s possible to use a template, consulting an attorney is recommended to ensure the document is legally valid and tailored to your specific needs.

Durable Financial Power Of Attorney Form