General Durable Powers of Attorney

If you ever get stuck in a hospital, become incapacitated, or even just decide to go on a long vacation, it may become necessary to have someone else pay your bills or deal with legal issues until you're able to do it yourself again. With a general durable power of attorney you can allow someone else to make financial and legal decisions for you.

Traditionally, lawyers have charged high rates to draft this document, however, Legal Ace now offers it at an affordable rate. So whether you want to complete your estate planning documents or you're going on a trip, Legal Ace can help you prepare your general durable power of attorney.

Note: The general power of attorney is different from the health care power of attorney (a document that allows another person to make medical decisions on your behalf). If you want a health care power of attorney, click here: Health Care Power of Attorney.

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Frequent Questions

• What is a general durable power of attorney?
  

  A general durable power of attorney is a document that allows one person to legally act on behalf of another for a specific purpose. The powers granted are usually financial. So, for example, the person designated to act on behalf of another might be permitted to sign the other person's checks. The person writing the power of attorney can generally designate whatever powers they want to grant in the power of attorney, however, it should be noted that the powers outlined should be as specific as possible. In other words, a power of attorney that simply said, "My friend is allowed to do anything on my behalf," would almost certainly not be upheld. A durable power of attorney can be set up in one of two ways. It can either take effect when you become incapacitated and unable to act on your own behalf, or it can be set up to be in effect immediately.

• What's the difference between a durable health care power of attorney and a general durable power of attorney?
  

  A durable health care power of attorney allows you to choose who will make important medical decisions for you in the event that you are incapacitated. This might include such things as telling doctors that you want life support, nutrition, or certain medications. A general durable power of attorney allows you to choose someone that will make financial decisions or actions on your behalf. The general durable power of attorney can be set up to grant other authorities, however, these should not include medical decisions. In such an event, the health care power of attorney should be used instead.

• When does a general durable power of attorney take effect?
  

  A general durable power of attorney can be set up to take effect when you become incapacitated and are unable to communicate or it can be set up to take effect immediately after you sign it. This allows you to choose whether you want to use the power of attorney to allow someone to manage your affairs while you're away on vacation or to use it as an estate planning device.

• Can I change or revoke my general durable power of attorney?
  

  Yes. You can modify or revoke your power of attorney at any time. If you do so, you should make sure that your changes or revocation are in writing, that someone else watches you sign the document, and make sure that it's notarized.

• What if I sign a power of attorney and my attorney-in-fact runs off with all of my money?
  

  As a theoretical legal matter, your attorney-in-fact (the person that is permitted to act on your behalf) is not permitted to do this. He or she is supposed to act with your best interests in mind and there are legal repercussions if he or she fails to do so. Nonetheless, in the real world, the person you designate could more easily run off with some of your assets. Because of this, it's important that you select someone you trust completely when choosing an attorney-in-fact.

• Can someone use my power of attorney after I have passed away?
  

  No. Once you pass away the power of attorney no longer has any authority. At that point you would need a different estate planning device such as a will or a living trust.

• Does my attorney-in-fact have to be a licensed attorney?
  

  Probably not. The only time your attorney-in-fact needs to be a licensed attorney is when he or she is representing you in a legal proceeding or acting on your behalf in some other legal matter. If you want your attorney-in-fact to do either of those things, he or she must be a licensed attorney. In all other scenarios the person you select only has to be a competent adult.

Glossary

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