What is a durable power of attorney?
A durable power of attorney is a legal document that gives your agent (the individual that you choose) to make decisions regarding your financial affairs. This can include power over your checking account, the ability to buy and sell stocks and bonds, the ability to buy and sell real estate, and many other financial decisions.
How does a durable power of attorney work?
You should inform your agent where the original document is stored. If the document is needed, your agent must file the document with the court system. Then, your agent must present the document with the filing information on it to those institutions, which your agent will be transacting business for you.
What are the reasons for creating a durable power of attorney?
- You are able to name your agent, the individual you wish to handle your affairs.
- Your agent can handle your affairs when you are unable. This includes when you are ill or when you are not in a place where you can transact your affairs, i.e. you are out of the country for an extended period.
- You are able to specify exactly which powers your agent has, i.e. the power to have access over your checking accounts, access to your safe deposit box, the ability to move funds between your accounts, etc.
- The opportunity to make sure that your affairs are handled in the manner that you decide.
What are the reasons against a durable power of attorney?
- Your agent will have control over the affairs you specify once the document is filed.