Durable Power of Attorney
What is a Durable Power of Attorney?
A Durable Power of Attorney (Durable POA) is a legal document that allows you to appoint someone to manage your financial affairs — and it stays effective even if you become incapacitated.
The word “durable” simply means that the authority you give your agent continues after you are no longer able to make decisions for yourself.
Without a Durable POA, your family may have to go through court to be able to manage your finances if something happens to you.
Why Having a Durable Power of Attorney Matters
Incapacity can happen unexpectedly — through an accident, illness, or simply aging.
If you can’t handle your financial matters and no one has legal authority to step in, your bills go unpaid, assets can be frozen, and businesses can be disrupted.
A Durable POA provides a clear, legally recognized way for someone you trust to take over quickly, without the need for costly court proceedings.
It gives peace of mind to you and your loved ones at a time when clear action is most needed.
What a Durable Power of Attorney Can Do
- Manage your bank accounts and pay your bills
- Handle real estate transactions
- Deal with investments and retirement accounts
- File tax returns and manage dealings with the IRS
- Continue running a business you own
What a Durable Power of Attorney Cannot Do
A Durable POA only covers financial and legal matters during your lifetime.
It does not allow your agent to make healthcare decisions — that authority belongs under a separate Medical Power of Attorney.
It also ends at death. Once a person passes away, the Executor or Trustee named in the Will or Trust takes over handling the estate.
Durable vs. Non-Durable Powers of Attorney
- Durable POA: Remains valid even if you are incapacitated.
- Non-Durable POA: Becomes invalid once you are incapacitated.
In estate planning, Durable POAs are almost always used because they offer protection when it’s needed most.
Who Needs a Durable Power of Attorney?
Anyone who wants to protect themselves and their family from unnecessary court involvement should have a Durable POA.
You should especially consider one if:
- You are aging or have health concerns
- You own real estate, investments, or a business
- You want to avoid delays in case of an emergency
- You simply want someone you trust to handle your affairs if needed
Without a Durable POA, even your closest family members may not be able to legally manage your affairs without first going to court.
A Simple Example
Paul’s Story
Paul was retired and enjoyed good health. But when he developed early-onset dementia, his adult children quickly realized they had no authority to manage his accounts or pay his bills.
Because Paul had signed a Durable Power of Attorney years earlier, his daughter was able to immediately take care of everything — from paying the mortgage to managing investments — without needing court approval.
It made a difficult situation much easier for the whole family.
How a Durable Power of Attorney Compares to Other Estate Planning Documents
A Durable Power of Attorney focuses on financial matters during incapacity. Other documents cover different areas:
- Will: A Will takes effect after death, not during life. Learn more about Wills.
- Revocable Trust: A Trust manages assets inside it, while a Durable POA helps manage personal assets outside the Trust. Learn more about Revocable Trusts.
- Medical Power of Attorney: A Medical POA gives someone authority over healthcare decisions, not finances. Learn more about Medical Powers of Attorney.
- Financial Power of Attorney: A Financial POA and a Durable POA are often the same document — drafted to stay in effect through incapacity. Learn more about Financial Powers of Attorney.
- HIPAA Authorization: A HIPAA Authorization is needed to give your healthcare agents access to your medical records. Learn more about HIPAA Authorizations.
Each document works together to ensure that every part of your life — financial, legal, and healthcare — is properly protected.
Final Thoughts
A Durable Power of Attorney is a critical piece of any estate plan.
It ensures that someone you trust can step in to manage your finances if you ever become unable to do so yourself.
It can save your loved ones significant time, stress, and expense — and provide you with peace of mind that your affairs will be handled properly.
Estate Planning Basics
Learn the purpose of each essential estate planning document—what it does, when to use it, and how it fits into your overall plan. These pages provide plain-English explanations of Wills, Trusts, Powers of Attorney, and other tools to help you protect your health, your finances, and your loved ones.
