Durable Power of Attorney

The Durable Power of Attorney effectively delegates to a chosen representative the power to legally conduct your affairs. By selecting some trusted person to exercise this power, you may avoid interruptions of your business and financial matters. Without it, no one could gain access to your bank account, securities or any other property in your name without resorting to lengthy legal proceedings.

Although your assets may be substantial, they would be of no help to your family in time of need if they remain in a “frozen” state. A series of long-term confinement, temporary loss of function, or a business trip will leave the family without financial means.

A Power of Attorney should be tailored to the needs of the individual. It may be a broad “general” power or a “special” power limited only to certain listed acts or items of property. A Durable Power of Attorney may be drawn now in anticipation of future disability. Your attorney may advise that you leave the document with him or her to be released to your “attorney-in-fact” only upon notification of disability or other specific events. In this way, you will be protected from its premature or indiscriminate use.

The most important factor in drafting this versatile instrument is the selection of a capable person as your attorney-in-fact. Ordinarily, a spouse might be most familiar with family needs.

Finally, it is extremely important that the Power be recognized by those who are asked to honor it, such as banks and transfer agents. The well-drawn Durable Power of Attorney will contain an exculpatory clause that frees persons who rely on it from any liability due to revocation, lack of mental competence, or death, without actual notice of such events. Such a clause will induce otherwise conservative financial institutions to accept the Durable Power of Attorney without hesitation.

Your legal counsel must be consulted in order to determine the appropriate form since most states have different regulations.