Durable Power of Attorney
The durable power of attorney is an important estate planning instrument. A durable power of attorney allows a person you appoint (your "attorney-in-fact") to act for you in all of your legal and business affairs when and if you become incapacitated.
Without a durable power of attorney, no one has legal authority to handle your affairs unless a court appoints a conservator or guardian. That court process takes time, costs money, and the judge may not choose the same person you would. In addition, under a guardianship or conservatorship, your representative may have to seek court permission to take planning steps that could otherwise be implemented immediately if you had a durable power of attorney.
What does durable mean?
All powers of attorney can be made durable. By making your power of attorney "durable", you allow your attorney-in-fact to act on your behalf even after you become incapacitated. Unless a power of attorney is made "durable" by specific language added to the document, your attorney-in-fact can only exercise a power that you are also capable of exercising. For example, if you are in a coma, you can't sign a contract. Therefore, your attorney-in-fact can't sign a contract on your behalf either, unless your have a durable power of attorney.
"Limited" or "General" Power of Attorney
- A limited power of attorney grants authority to your attorney-in-fact to perform specific acts on your behalf. For example, it may give your attorney-in-fact the right to sign a deed to property on a day when you are out of town, or it may allow your attorney-in-fact to sign checks for you.
- A general power of attorney is comprehensive and gives your attorney-in-fact all powers and rights that you have yourself.
"Current" or "Springing" Power of Attorney
- A "current" power of attorney takes effect immediately upon its execution, even if the understanding is that it will not be used until and unless you become incapacitated.
- A "springing" power of attorney does not take effect until a specified event occurs in the future.
It's never to early to start planning. If you need a power of attorney, call the attorneys at Gass Law Office at 605.692.4277, or fill out our contact form on the right.