Durable Power of Attorney FAQs

What is a Power of Attorney?

A Power of Attorney is a written document in which you designate an Agent (someone you trust) to control your finances, should you be unable to do so yourself, either because you are traveling (for an extended period of time) or incapacitated. Typically, this document is used to name an agent to sign financial documents for assets that are outside of your RLT (e.g., a social security statement, retirement account, etc.).

Who Needs a Power of Attorney?

Everyone (above the age of 18). Although having a Power of Attorney is more pressing for certain groups of people (those about to embark upon an extended trip, those with upcoming surgeries and/or hospital admissions, those who are approaching an elderly age, those who have long-term illnesses), everyone still needs one. If you suddenly or unexpectedly become incapacitated, and do not have a Power of Attorney, your partner or family member will need to go to Court to seek permission to manage your finances. Such proceedings, called conservatorship proceedings, are costly, time-consuming, and generally avoidable.

What Kind of Control Would My Agent Have?

You may give your Agent as little or as much control over your finances as you wish. Examples include: using your assets to pay your bills and expenses; collecting social security, Medicare, or other government benefits; operating and managing your business; filing and paying your taxes; managing your investment portfolio.

When Will My Power of Attorney Become Effective?

Whenever you want. You can design your Power of Attorney so that it becomes effective only when a physician certifies you have become incapacitated—aka “springing” power. This can cause some delay in between your incapacity certification and your agent taking over. Alternatively, you can design your Power of Attorney so that it goes into effect as soon as you sign it—aka “immediate” power (most spouses choose the latter, so there is no delay between your becoming incapacitated and the agent taking over).