Specific legal instruments are vital for ensuring that someone appointed by you will take care of your business, things, and even loved ones after your demise or becoming incapacitated. One of such juridical documents is a durable power of attorney form, representing one of the various types of power of attorney form that follow different requirements, depending on the state. In its essence, power of attorney empowers an assigned individual (or agent) to deal with particular issues – mainly financial and health-related – on your part. But what does an enduring POA for financial purposes do for its creator (also known as the principal)?
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A dual power of attorney (another term used in the same meaning as durable POA) helps you plan actions in the event of a medical emergency and reduced brain functions. This legal paper can also guarantee that your financial affairs will be handled for you. The presence of such a legal document allows you to avoid confusion and vagary when near and dear ones must make tough medical choices.
Such a type of POA is called durable because in case its author can no longer function mentally or physically in a proper way, the document would remain in force. For this reason, it is highly advised to choose your attorney-in-fact carefully, giving preference to the person you could trust with your life. Besides that, you can appoint a beneficiary of your last will as the delegee of your lasting power of attorney. The principal’s signature should always accompany such a legal instrument. For it to be legally recognized, the composed paper has to be executed in compliance with the corresponding state legislation.
Durable POA Use Cases
By analogy with the prevailing number of legal documentation, the continuing power of attorney must be created only by a person of legal age or older. Other cases in which the use of such a juridical document is entirely justified are listed below:
- A planned surgical intervention (with a possible risk to life)
- Living overseas or making a long-term trip abroad
- A diagnosed severe illness (or you are at risk)
- Employment in a high-risk job
- Being a member of the armed forces stationed abroad, etc.
If you have an elderly parent or a disabled one that you are taking care of, in the absence of the unlimited power of attorney, you might need to seek physical custody of them through the courts.
As for the main opportunities provided by such a legal paper, they are as follows:
- The representative of the principal will have the right to deposit and withdraw money from their banking account.
- The agent will be able to make investments instead of the creator of a durable POA, including borrowing and lending money.
- The authorized person will be granted access to all of your state allowances – for instance, social security benefits, medical assistance, etc.
- The attorney-in-fact will have the opportunity to donate funds to the organizations on behalf of the principal.
- The appointed individual will be handling state and federal taxes for you.
- The allocated agent will have the right to dispose of your real estate.
- The chosen delegee will be able to write and cash check in your name, as well as manage your finances in general.
Undoubtedly, the power of such vital documentation is not limited to the activities mentioned above, as it also concerns making gifts, obtaining licenses and insurances, and others.
How to Fill Out a Durable POA
Creating a dual power of attorney will oblige you to find someone you can entrust the control of your financial matters if you cannot do it yourself due to your limited capabilities. Naturally, such an individual (or a couple of individuals) must be reliable and responsible, as well as perfectly competent to take decisions and manage the principal’s business.
If you are worried that you are too inexperienced in writing such a crucial legal paper on your own, please, resort to our top-quality durable power of attorney form to simplify the process for yourself. After that, feel free to adhere to the straightforward step-by-step instruction on how to complete an enduring power of attorney sample.
Download the Template
The majority of the states in America have a legislative form, which must be filled out to be accepted by the court. At other times, the principal can download the high-quality sample presented in all popular formats of electronic documents (.doc, .docx, .pdf, and even .odt), which is accepted almost everywhere in the US.
Ponder on the Monetary Powers
The next step consists in deciding on the powers with which your lasting power of attorney will be endowed in the event of you becoming incapacitated. Quite often, the marital partner is allocated as the primary beneficiary of the principal.
In case you share a business with several partners, it is possible to write several forms of power of attorney and transfer items related to your enterprise to other owners whereas leaving all personal funds decisions to your wife or husband.
Decide When a POA Comes into Effect
After that, it is vital to choose whether your continuing power of attorney will be enforced immediately or only upon your disability or physical absence in the USA. Usually, incapability is diagnosed by a licensed doctor and determined under the state legislature.
Present Copies to All Participants
When the dual POA form is filled out, and all required signatures are provided, it is critical to give copies of this legal paper to everyone involved. At least both the principal and their attorney-in-fact will have to possess copies of the document once it is created. Besides, it is reasonable for the author of the open-ended power of attorney to copy it and pass the duplicates on to other immediate relatives and their lawyers to make sure they hold evidence of the contract being signed. It is a mandatory condition to have proof of the enduring power of attorney. This way, you will confirm that the selected delegee is responsible for performing the duties that they are legally obliged to fulfill.
Follow the Rules of the Agreement
Once the agreement enters into force, all participants will be required to comply with its conditions. According to the state statutes, the attorney-in-fact should act in the principal’s best interests and make decisions solely in the spheres that are precisely defined by the contract. If the agent violates the indicated terms, the enduring power of attorney needs to cease to exist immediately. Otherwise, the authorized individual may face serious legal consequences, the severity of which depends on the number of losses incurred because of the abuse of authority imposed.
How to Revoke a Durable POA
It is possible to annul the lasting power of attorney whenever the principal desires so, with the only condition of them being of sound mind. The cancellation must be carried out in writing.
In general, there are two methods used to withdraw the durable POA:
- Compose and verify a document known as a Notice of Revocation.
- Destroy all current copies of the contract.
The first option is the best one, as it provides proof that the author of the continuing power of attorney indeed nullified it. In particular states, a person can revoke the existing POA only by writing a new one. Nevertheless, it is still highly recommended to come up with a Notice of Revocation and inform everyone who should know about the annulation. Mind that this document needs to be signed and dated, but it is not obligatory to have it confirmed by witnesses – although, it would be a wise choice. On the other hand, the presence of a state notary is required when you prepare such a notice.
As for who can cancel such a juridical document created for a close person, this question is more complicated. If you assume that an individual misuses their position of the designee, you may file a lawsuit to disqualify them. Address a lawyer with broad experience in both real estate planning and elder law to request legal assistance in this case.