durable power of attorney
- The definition of a durable power of attorney is a document stating that a person, the grantor, gives power of his legal, business or personal affairs to someone else until the grantor dies, regardless of the grantor's physical or mental state.
An example of a durable power of attorney is a man giving his wife control over his affairs until he dies.
When is it wise to give another person a durable power of attorney over my affairs?
A power of attorney is “durable" if the agent's authority continues notwithstanding that the person granting the power of attorney (the “principal") has become incapacitated (legally unable to manage his or her affairs). Powers of attorney can authorize specific acts (for example, acting for the principal in a particular transaction) or can broadly authorize the agent to act for the principal. If a person becomes incapacitated and has not granted a durable power of attorney, it may be necessary to have a guardian appointed to manage his or her property, which is often cumbersome and expensive. For this reason, spouses often grant each other durable powers of attorney granting broad powers, and older persons often give a trusted person a durable power of attorney to manage their affairs. Broad powers of attorney can be abused and should be granted carefully.
Stephen F. Lappert, Partner, Trusts and Estates Department, Carter Ledyard & Milburn LLP, New York, NY
durable power of attorney - Investment & Finance Definition
A legal document written by a person giving another person, the executor, the right to make legal and financial decisions. If the writer of the durable power of attorney becomes incapacitated, the executor of the durable power of attorney begins to make decisions for the writer of the durable power of attorney. The durable power of attorney may narrowly define areas in which the executor has the ability to make decisions or it may broadly give away those rights. A durable power of attorney might cover buying or selling investments or assets. Another type of a durable power is a durable power of attorney for health care that authorizes someone to make decisions about health care, such as whether a person should remain on life-support equipment.
durable power of attorney - Legal Definition