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Planning ahead gives you and your loved ones peace of mind. One of the most effective tools in estate planning is a durable power of attorney (DPOA). This document allows you to choose someone you trust to make financial or legal decisions if you can’t do so yourself. Understanding how it works and how it differs from other powers of attorney can help you prepare for the future with confidence.
What Is a Power of Attorney?
A power of attorney (POA) is a legal document where you appoint another person, known as your “agent” or “attorney-in-fact,” to act on your behalf. The scope of their authority depends on the type of POA you create. Some give your agent wide authority, while others limit their role to specific transactions.
Common examples of powers of attorney include:
- General power of attorney: Broad authority over financial and legal matters, usually ending if you become incapacitated.
- Limited or special power of attorney: Authority restricted to a particular task, such as selling a house while you are out of state.
- Springing power of attorney: Authority that only begins if a specific event occurs, such as your doctor certifying that you are incapacitated.
Each of these tools serves different needs.
What Makes a Power of Attorney Durable?
A power of attorney becomes durable when it continues to be valid even if you become incapacitated due to illness, accident, or age-related decline. Without this durability, the authority your agent has ends the moment you are no longer able to make decisions on your own.
For example, if you signed a standard POA and later suffered a stroke, your agent would lose their authority right when you might need them most. A durable power of attorney prevents that gap in protection.
In New Jersey, a POA is not automatically durable. The document must include specific language stating that it remains in effect if you become incapacitated.
Why a Durable Power of Attorney Matters
A DPOA is an important part of any estate plan, particularly as we grow older or face health challenges. Without one, your family may be forced to petition the court for guardianship or conservatorship if you can’t manage your affairs. That process can be time-consuming, expensive, and stressful.
Having a DPOA in place offers clear benefits:
- Continuity: Your chosen agent can immediately step in if you’re unable to act.
- Control: You choose who will make decisions, instead of leaving it up to a court.
- Flexibility: You can tailor the document to grant as much or as little authority as you want.
- Peace of mind: You and your family know that someone you trust is ready to handle important matters.
Choosing the Right Agent
Selecting the right person as your agent is just as important as creating the document itself. This individual may have access to your bank accounts, property, and financial records. You’ll want to choose someone who is:
- Trustworthy and reliable
- Able to handle financial matters responsibly
- Willing to put your best interests first
- Comfortable taking on the role if the time comes
Many people name a spouse, adult child, or close relative. In some cases, a professional fiduciary may be a better choice.
How a Durable Power of Attorney Fits Into Estate Planning
A DPOA is one piece of a larger estate plan. It works hand in hand with other tools like wills, trusts, and healthcare directives to ensure your wishes are respected both during your life and after. Without it, your estate plan may have a serious gap.
At Bozanian McGregor, LLC, we help clients across New Jersey understand how a durable power of attorney can protect them and their families. Whether you are updating your estate plan or creating one for the first time, we will guide you through the process with clarity and care.
Protecting Yourself and Your Family
A durable power of attorney gives you control over the future, even when life takes unexpected turns. It ensures that your finances and legal matters are handled by someone you trust, reducing stress for your family. If you’re considering adding a DPOA to your estate plan, we encourage you to take the next step.
At Bozanian McGregor, LLC, we will help you draft a document that reflects your wishes and provides lasting protection. Contact us today to schedule a consultation and put the right safeguards in place.