General Durable Power of Attorney

There are different types of powers of attorney. A common version is the general durable power of attorney, which is created with a form that typically is available from a bank or other financial institution. Attorneys also can draft these legal instruments.

General Application

A general durable power of attorney designates an agent to deal with all of your financial affairs.

Durability

The durability provision in this type of instrument means that it remains in effect if you become incapacitated. A power of attorney--general or specific--that is not durable is no longer in effect if you become incapacitated.

Benefits

The benefit of this type of power of attorney is that you designate a trusted and capable person to tend to your financial affairs. Moreover, you have the comfort of knowing the agent keeps acting on your behalf even if you become incapacitated.

Expert Insight

Even though you designated an agent to deal with your financial affairs, you must maintain oversight. You need to have a system of checks and balances in place to ensure the agent does act only on your behalf.

Misconceptions

A common misconception is that a general durable power of attorney encompasses authority to deal with your health care decisions. The fact is that only a specific durable power of attorney for health care grants this type of authority.

References

• "A Practitioner's Guide to Powers of Attorney"; John Thurston; 2007
• 'Lectric Law: Power of Attorney

Resources

• Legal Services for the Elderly: Power of Attorney