A durable power of attorney (DPOA) is an indispensable part of a complete estate plan. A DPOA is a special type of power of attorney that is used to plan for your incapacity. With it, you (the principal) give another person (your agent or attorney-in-fact) the authority to act for you in financial and legal transactions. An ordinary power of attorney ceases to be valid if the person giving the power becomes incapacitated. A DPOA, on the other hand, continues in effect and allows your attorney-in-fact to manage your affairs if you are no longer able to do so (hence the term “durable”).
When you execute a DPOA, you delegate certain powers to a carefully selected person to be exercised during your incapacity. Once you become incapacitated, the granted powers last for the duration of your incapacitation, whether short-term or long-term. The person you select handles your financial affairs pursuant to your expressed wishes or best interests.
You can give your attorney-in-fact unfettered powers to handle all your affairs, or you can limit the powers.
Some of the common powers given to an attorney-in-fact include:
Writing checks to pay your bills and depositing funds into your accounts.
Managing your real estate, including buying, selling, and renting it.
Buying and selling your personal property.
Managing your investments and insurance and retirement accounts.
Managing your government benefits.
Filing your tax returns and paying your taxes.
Accessing your safety deposit box.
Filing and defending lawsuits on your behalf.
Operating your business.
Your attorney-in-fact presents your DPOA to the people or institutions with whom you deal as proof of the grant of authority and signs your name followed by his or her own, e.g., “Jane Jones by Sam Smith, Power of Attorney.”
Executing a DPOA will provide you with the peace of mind of knowing that your loved ones will not be forced to ask the court for the authority to make these decisions.
Call Us Today for Assistance with Your Business Needs
At Kramer, Green, Zuckerman, Greene & Buchsbaum, P.A., we offer comprehensive legal services so that we can protected your assets and minimize your costs when you are going through the sale of your business. We are here to help you navigate the complex legal problems that often during the sale of a business in the most efficient manner possible. Call us at (954) 884-8385 or find out more about our legal services online. Set up a time to talk to us about your legal needs today.