How to Create a Durable General Power of Attorney

A durable power of attorney does not end if the principal becomes incapacitated.

A power of attorney document allows a person (the "principal") to convey specific powers and authorities to an agent for the purpose of allowing the agent to manage the principal’s property and financial transactions. The difference between a power of attorney and a durable power of attorney is that the former may be extinguished if the principal becomes mentally incapacitated while the latter stays in effect until the principal’s death unless the principal issues a revocation of the agent’s powers while he is of sound mind.

Instructions

1. State the title of the document--“General Durable Power of Attorney”--at the top of your page. This allows the reader of the document to understand the intended purpose of the document before reading the entire text. Skip two lines and begin your first paragraph by typing the full name and address of the principal (the person conveying the power of attorney) and the agent (the person accepting the power of attorney). Additionally, state the principal’s intention to appoint the agent with durable power of attorney.

2. Skip two lines and begin your second paragraph, which should state the extent and conditions of the agent’s authority to act. For example, the agent might have the authority to “engage in any transactions and access any accounts that the principal would have authority to access.” A power of attorney can either confer authority to act immediately upon the execution of the document or the power can be delayed until a specific event occurs in the future.

3. State the specific powers that the principal wishes to confer to his or her agent in the third paragraph. These items may include the power to access bank accounts, pay bills, enter into contracts, or sell property on the principal’s behalf. Conclude this paragraph with the statement that the power of attorney is durable and will not affected or revoked by virtue of the principal’s mental or physical incapacity.

4. State any restrictions on the agent’s power in the fourth paragraph. If the principal does not wish to impose restrictions on power, this paragraph may be left out of your document. However, if you would like to preserve specific property so that it may be conveyed in your will or for any other reason, those specific items, accounts and property descriptions should be listed in this section.

5. Include any optional clauses such as limitations on the agent’s liability for acting in good faith, the ability or inability for third parties to treat photocopies of the document as the original, whether your agent is to be compensated, the names and addresses of substitute agents and which state’s law should be used to govern any disputes that arise over the validity or execution of the document.

6. Have the principal and at least two witnesses sign at the end the document in front of a notary. Each signor should write the date next to the signature.

Tips & Warnings

• This article is intended for educational purposes only and should not be construed as legal advice. Each state maintains specific criteria for the precise execution and filing of legal documents. Individuals who wish to execute a legally binding document, such as a durable power of attorney, should consult with an attorney licensed in the state to discuss her specific needs and rights under their state's law.

References

• Penn Law: Uniform Power of Attorney Act
• Legal Services for the Elderly: Power of Attorney
• Legal Help Mate: Durable General Power of Attorney for Property and Finances
• ExpertLaw: Durable Power of Attorney Form