Durable Powers of Attorney

A durable power of attorney can be a powerful tool in the event of a person's disabililty or incapacity. Absent a power of attorney, a family member or loved one must petition a court to administer the affairs of an individual who is legally incapacitated. This process can be lengthy, uncomfortable and expensive. A power of attorney allows an individual to appoint someone to handle their financial affairs for them (typically without court approval). The following are some tips regarding powers of attorney:

1. Ensure that your current power of attorney is "durable," which means it will survive your incapacity. A durable power of attorney should actually include the word "durable" in the document.
2. "Freshen" your current power of attorney every few years, as a bank or financial institution is more likely to accept a power of attorney with a recent date.
3. Consider allowing your banks, institutons, employer, etc. to review your power of attorney now (before someone uses it) to ensure they will accept it when it is actually needed.
4. Consider naming several successor agents under a power of attorney.

Taking the time to create a durable power of attorney can be a tremendous gift for your loved ones.