Durable Power of Attorney Forms

What Is a Durable Power of Attorney

A Durable Power of Attorney is a legally binding document used when an individual wants to pass responsibilities and grant control to someone else while they are still alive. This can be in matters of their finances, estate planning, healthcare, business transactions, or investments. The ‘principal’ can choose an ‘agent’ to take over for them and control the more significant decisions in their life. 

The unique characteristic of a DPOA is that the agent will remain in power even when the principal is aging, incapacitated, or has been diagnosed with a mental or physical disability. This is why the DPOA is often used in more severe conditions — primarily when a principal anticipates that they may no longer be able to make decisions or manage their affairs and assets. 

While the setting for it is grim, a DPOA can be very helpful. In case of emergencies related to personal health or businesses, the agent acts on behalf of the principal and takes decisions. Not having a valid DPOA in place may result in your family or legal heir having to take the circuitous legal route in case of any crisis.

How to Write a Durable Power of Attorney

Here is a step-by-step guide on how to write an effective DPOA. 

1. Date, names, and location

Every DPOA form will require you to enter the date on which the document was created. You will then have to identify yourself as the principal and the person you choose to be your agent or attorney-in-fact. It is recommended that you choose someone you trust and are both on the same page about the responsibilities and powers being transferred. 

You will also have to mention both parties’ locations and residential addresses for legitimacy and identification purposes.

2. Date and time of effect

As the principal, you will need to determine when the DPOA will come into effect. The transfer of power to your agent can happen as soon as you sign the document, or it can be specified to come into effect if you become physically or mentally incapacitated to preside over your personal affairs.

3. Enlist specific or broad actions

In order for the agent to act on your behalf, you will need to comprehensively define the actions they will be authorized to undertake on your behalf. It is recommended that you review these actions with your lawyer, or a trusted family member, and the agent as well before adding your initials to the page. 

Here are some of the actions you can choose to transfer agency to your attorney-in-fact: 

• Banking 
• Lending 
• Government benefits
• Matters of retirement plans
• Ownership of safe deposit boxes
• Real estate and power to manage properties
• Investments
• Taxes
• Legal proceedings
• Legal advice
• Gifts (charitable pledges, tokens of honor, etc.)

4. Special instructions and signage

While you may have agreed to give up control of certain tasks that were once your responsibility, there may still be certain matters you prefer to retain control of. 

In such cases, you can state in the DPOA any special instructions and limitations for the agent. For example, while you might want your agent to manage your properties on your behalf, you might want to restrict their right regarding the sale or transfer of ownership of the said properties. You can list any such allowances or restrictions in your DPOA—the more specific, the better.  

The last but most important part of a DPOA is the signature. Depending on your state, the laws for signage are different, and you might need the DPOA to be notarized or signed by witnesses with no vested interests (or both).