Durable Power Of Attorney For Finances

A Durable Power of Attorney for Finances is one of the tools you can use to control the management of your property and financial affairs if you become incapacitated.

A Durable Power of Attorney for Finances appoints a person (your "Attorney In Fact") to take over your financial affairs. You can decide:

• When a Durable Power of Attorney takes effect (for example, immediately, or if you become unable to speak for yourself)
• What powers the Attorney in Fact has
• When the Power ends

Preparing a Durable Power Of Attorney can be as simple as filling in some blanks on a pre-printed form from a stationary store or online and signing it. However, consider following some or all of the ideas in this document to make sure your Power of Attorney is not challenged and declared to be invalid.

If a lawyer does not prepare your Durable Power of Attorney, it is preferable to at least have a lawyer look it over. For instance, if the power isn't set up as a "durable" power of attorney with wording that meets the requirements of your state's laws, the authority will cease if you become incapacitated.

In order to avoid your Attorney in Fact form being unnecessarily hassled:

• Don't give an Attorney in Fact more power than necessary. 
• Whatever power you do give an Attorney in Fact, consider making the power broad. If you want to limit the Attorney in Fact, you can do so in a side agreement between you and the Attorney in Fact that will not be shown to third parties.
• If you want your Attorney In Fact to be able to deal on your behalf with a bank, stock broker, and/or other financial institution, consider executing the financial institution's printed form in addition to the form you use for other purposes. 
• NOTE: If you want the person to be able to deal for you with Social Security, appoint him or her as a Representative Payee.

Think carefully about the person to name as your Attorney in Fact. This person basically has a license to steal because he or she will be able to do anything that is included in the power of attorney. One way to help assure honest dealing is to have a duplicate of all financial statements sent to a person you trust (such as your accountant).

Each of these subjects are covered in detail in:

• Terms to Know  
• What Can An Agent/Attorney-in-fact Do?  
  
• Who Might Need A Durable Power of Attorney?  
  
• When Does A Durable Power Of Attorney Take Effect?  
  
• Who Decides If I Am Incapacitated For Purposes Of A Power Of Attorney?  
• When Does A Durable Power Of Attorney End? 
• When Might A Guardianship (Conservatorship) Be Better Than A Power of Attorney?  
  
• Do I Need A Lawyer To Prepare A Durable Power-Of-Attorney For Finances?
  
• Who Should I Name As "Agent" Or "Attorney-In-Fact"?  
  
• Banks, Stock Brokers, Financial Institutions and Social Security
  
• How To Prevent Abuse  
  
• What Is The Best Way To Execute A Durable Power Of Attorney?  
  
• How Do I Revoke (cancel) A Durable Power Of Attorney?
  

Other alternatives for managing your property if you become unable to manage it yourself are Trusts, Guardianships and legal entities such as Corporation or LLC. These entities are discussed in the articles listed in "To Learn More."

NOTE: When considering documents to cover the "what ifs" also consider Advance Directives for Healthcare and an Advance Directive for Mental Health.

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