The Durable General Power of Attorney can leave you and your estate in a position that may not be in your best interest or that of those who depend on you. It is vital that you properly undersand its benefits and risks.
The Durable General Power of Attorney allows an individual to appoint someone to attend to his or her financial and business affairs in the event that they are not competent to do so. The power is effective immediately. It is not revoked by the principal's incapacity or incompetency, but continues until the principal revokes it or until their death. This is a very standard document and one which we recommend that you consider, as well as the Springing Power of Attorney (some states do not allow this; check with your legal advior for your state's position on this before you act) as part of your estate plan if you have not already done so. We have several attorneys that are in a position to help you should this not currently be in place. This document is useful in avoiding the need of establishing a guardianship in the event of your incapacity or disability. This document can come to the aid of families who are suddenly presented with illness, of a relative, which has put them into an incapacity or incompetency, creating emotional trauma and possible financial turmoil. It is important to limit the potential for abuse by taking certain precautions. Picking someone trustworthing is by far the most important precaution. In addition, you should consider the conditions, such as after a physician or two certifies in writing that the principal is incapacitated.
The Power of Attorney isn't only for the elderly. It is just as important for younger people because anyone can be involved in a car accident, or hospitalized, and unable to handle their affairs for a lengthy period.
It is important to remember that the state laws governing the Power of Attorney vary significantly from state to state. For instance, don't automatically assume you can use a Power of Attorney for Health Care decisions. Check with your legal advisor before you act on this to be sure your decision fits your state laws. It is important to remember that a Durable Power of Attorney is never a substitute for a will.