Choosing the Right Durable Power of Attorney for Your Estate
What is a legal durable power of attorney (DPOA)? It’s one of the most critical decisions when planning for the future of your estate and personal affairs. Let’s explore what it entails and how to choose the right agent to protect your interests.
Durable Power of Attorney 101
A durable power of attorney is a legal document that allows you (the principal) to designate another person (the agent) to manage specific aspects of your life if you are unable to do so yourself. The term “durable” just means that the power remains in effect even if you become mentally or physically incapacitated.
What’s the difference between a general power of attorney and a legal durable power of attorney? A general power of attorney becomes void if the principal becomes incapacitated, but a legal durable power of attorney is designed specifically to endure through incapacity.
A DPOA is a vital component in any Arizona estate plan, and depending on your needs, it can cover matters such as:
- Finances (banking, real estate, investments, etc.)
- Legal decisions (signing contracts, handling claims, etc.)
- Business operations
Healthcare decisions are typically handled through a separate medical power of attorney, but a legal durable power of attorney can outline provisions in some cases. Without a DPOA in place, your loved ones may have to seek court-appointed guardianship or conservatorship to step in.
Tips for Choosing a Legal Durable Power of Attorney Agent
Your designated agent will have significant control over your affairs, so the decision on who it is requires serious thought. Often, people seek legal counsel to make this choice. Consider the following when selecting your DPOA agent:
- You must fully trust your agent to act in your best interests.
- Choose someone with a proven track record of responsibility, honesty, and good judgment.
- Designate a person who has the willingness and ability to manage finances or navigate the legal system.
- Choose someone who is organized and capable of handling complex decisions under stress.
- Your agent should be easily reachable and willing to act on your behalf when needed.
- Make sure your agent is willing to take on the responsibility and that they understand your values and expectations.
Always name a successor agent in case your first choice is unwilling or unable to serve when the time comes. Contact Nicole Pavlik Law Firm to learn more and begin creating your comprehensive estate plan.
When Does a Durable Power of Attorney Go Into Effect?
You can choose when your durable power of attorney becomes effective. Your options are immediate —your agent has authority as soon as the document is signed— or springing —the POA becomes active only if and when you become incapacitated, as determined by a physician.
An immediate POA allows for help even while you’re competent, while a springing POA limits authority until it’s truly needed. However, a springing POA may involve delays while proving incapacity. Consult an estate planning attorney for more information.
Mistakes to Avoid
Creating a legal durable power of attorney is not just filing a form. Avoid these missteps:
- Using generic templates that don’t comply with Arizona law
- Failing to update the document after major life changes such as marriage, divorce, or relocation
- Not informing your agent about their role or providing access to necessary documents
- Granting overly broad powers without safeguards or accountability
- Skipping successor agents and leaving a gap in authority
- Working with the wrong estate planning attorney
In Arizona, a durable power of attorney must be in writing, clearly state that it remains effective upon the principal’s disability or incapacity, be signed and dated by the principal, and be notarized. Get help with this crucial step. Reach out to Nicole Pavlik Law Firm today.