A durable power of attorney (DPOA) is one of the most foundational documents in estate planning. And yet, many people either don’t know what it is or overlook its importance until a crisis hits. At its core, a DPOA allows you to legally designate someone you trust to manage your financial or legal affairs if you’re ever unable to do so yourself. What makes it “durable” is that this authority you’ve granted remains valid even if you become incapacitated. In other words, it’s a document that ensures your life doesn’t unravel if your health takes a turn, and it does so while honoring your autonomy and your wishes. How do I create a durable power of attorney? And, how to I choose the right agent? Keep reading to learn more about DPOAs and to find the answers to your questions.
Why people create durable powers of attorney
Most people don’t wake up thinking they need a power of attorney. But then comes a hospitalization, a diagnosis, a long trip abroad, or simply the recognition that they’re not as sharp as they used to be. In those moments, having a DPOA in place is a game-changer. Rather than scrambling for court intervention, which can be slow, costly, and emotionally draining, the person you’ve already chosen can step in to manage things seamlessly. They can pay bills, manage real estate, file taxes, or access accounts, all without waiting for judicial approval or guardianship proceedings.
A durable power of attorney offers immense convenience and protects your dignity. A DPOA also helps you maintain control over who makes decisions for you, how those decisions are made, and what values guide them. It spares your loved ones the uncertainty and infighting that often arise when no clear authority is in place. Choosing a specific person as an agent also relieves your family members from being put in a position to make decisions they might not have the emotional bandwidth or the financial acumen to make.
What makes a power of attorney “durable”
The key difference between a regular power of attorney and a durable one lies in what happens if you become mentally incapacitated. Most “general” powers of attorney expire at that point, meaning your agent’s authority ends precisely when it might be needed most. A durable POA, by contrast, remains effective through incapacity. This allows your chosen agent to continue acting on your behalf when you’re unable to do so. Every state allows for durable powers of attorney, though the exact language needed to establish durability varies slightly. In most states, it’s as simple as including a sentence that says, “This power of attorney shall not be affected by subsequent disability or incapacity of the principal.” Without this language, the default assumption may be that the document expires when you lose capacity.
Some people prefer what’s known as a springing DPOA. A springing DPOA only becomes effective once a certain condition is met. Often a written determination of incapacity by a doctor is required. Others opt for an immediate DPOA, which becomes valid the moment it’s signed. Each approach has pros and cons, and choosing the right one often depends on your comfort level, your relationship with your agent, and your state’s laws. Talk with an attorney in your area if you’re considering creating a DPOA. They can assess your situation and concerns, and guide you to the right estate planning tool.
Choosing the right agent and protecting your interests
Designating someone to act on your behalf is a deeply personal decision. The person you choose must be not only trustworthy but also competent, organized, and capable of handling complex tasks under pressure. That may be a spouse, an adult child, a sibling, or a close friend. In some cases, people name professional fiduciaries or attorneys to fill the role. While most agents carry out their duties honorably, there’s always the risk of abuse, especially if the document grants broad authority without oversight. That’s why careful drafting matters. For example, some people require their agent to provide periodic accountings, obtain co‑signatures for large transactions, or consult a financial advisor. And of course, it’s always smart to name a backup or successor agent in case your first choice can’t serve.
What powers can be granted
You can customize a DPOA to fit your needs. Some people want to give their agent sweeping authority over all financial and legal matters. Others prefer a narrower scope, say, limited to managing a business, selling property, or handling taxes. Your DPOA can grant authority to:
- Manage bank accounts, investments, and retirement funds
- Buy or sell real estate
- Handle business matters or sign contracts
- File and pay taxes
- Apply for public benefits or health insurance
- Maintain or terminate digital assets and online accounts
Not all institutions accept every power of attorney form, so it’s important to use language that aligns with your state’s statutes and your financial institutions’ policies. Many states have statutory POA forms that are widely recognized by banks and government agencies.
Execution requirements vary by state
In most states, a DPOA must be signed by the person creating the document (the “principal”). Oftentimes, this signing must be witnessed by one or two people and notarized. Some states only require notarization. Others, like Florida and New York, have specific witnessing and signing procedures. Failing to follow the rules in your state can make the document invalid or difficult to enforce. This is why it’s crucial to work with an attorney or to use a platform that complies with your state’s legal requirements. It’s also worth noting that a DPOA ends upon your death. After that point, your will or trust, not your POA, governs the distribution of your assets and decisions about your estate.
How a DPOA fits into broader estate planning
A DPOA isn’t just a practical form, it’s part of a larger conversation about how you want your life and assets managed if you’re no longer able to make decisions yourself. Paired with tools like a health care proxy, a living will, a last will and testament, and, for some people, a trust, the DPOA ensures that your financial life remains intact during periods of incapacity. And in the age of digital banking, remote work, and online assets, many DPOAs now include explicit provisions about accessing and managing electronic accounts. Some states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which can help your agent manage online property like cloud storage, cryptocurrency, or digital subscriptions, but only if your document clearly authorizes it.
Final thoughts on a durable power of attorney
Creating a durable power of attorney isn’t an effective and proactive way to protect yourself and the people who love you. Having a DPOA in place can ensure that your bills are paid, your property is managed, and that your wishes are respected, even if life throws you a curveball. You don’t need to wait until retirement to draft one, either. Anyone over 18 with assets or obligations can benefit from having a DPOA on file. In fact, many people create one alongside their will, their health care directive, or their prenuptial agreement, because it completes the picture of how they want their life to be managed, come what may.
Nicole Sheehey is the Head of Legal Content at HelloPrenup, and an Illinois licensed attorney. She has a wealth of knowledge and experience when it comes to prenuptial agreements. Nicole has Juris Doctor from John Marshall Law School. She has a deep understanding of the legal and financial implications of prenuptial agreements, and enjoys writing and collaborating with other attorneys on the nuances of the law. Nicole is passionate about helping couples locate the information they need when it comes to prenuptial agreements. You can reach Nicole here: Nicole@Helloprenup.com
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