What is a Durable Power of Attorney?

A durable power of attorney authorizes someone you choose to handle your financial affairs. We call it durable, because unlike a traditional power of attorney, which becomes void if you become incapacitated, a durable POA remains in effect regardless of capacity, ensuring decisions can be made on your behalf at the time when you cannot.

This type of power of attorney is an important part of your comprehensive estate planning. It provides peace of mind and about managing your affairs in case of unforeseen circumstances. You can set all types of limits on a financial power of attorney. For instance, you can specify that it only takes effect if a doctor declares you to be incompetent (sometimes we refer to this as a “springing” power of attorney because it only springs into action when a specific condition occurs.) Or you can have the document take effect immediately to enable a loved one to help you pay bills and manage accounts. This is often used for elderly parents.

With a power of attorney, you can give someone authority to complete a specific task, such as signing a contract while you are out of the country or even manage a real estate transaction. At PayneLess Law, we will craft the power of attorney that grants exactly the authority to achieve your objectives and needs.

Choosing the Right Agent

The effectiveness of a durable power of attorney depends on the trustworthiness and reliability of the appointed agent or attorney-in-fact. Consider choosing someone you trust to make decisions in your best interests  and who will competently manage financial matters. But understand you are giving someone authority to act on your behalf, and if they make decisions you disagree with, you may be bound by their actions. However, the power of attorney does not give your agent ownership of any of your assets.

Creating a Durable Power of Attorney in Arizona

The process of creating a durable financial power of attorney involves several key steps:

• Determining the Scope: Consider whether your POA will be broad or limited to specific acts or types of decisions.
• Selecting Your Agent: Choose someone you trust, is capable and willing to take on the responsibility.
• Legal Documentation: Allow PayneLess Law to draft a document that meets Arizona’s legal requirements and accurately reflects your wishes.

It is a good idea to communicate with your agent to ensure they understand your preferences and the scope of their authority. You should keep the original document in a safe, accessible location, and provide copies to relevant parties, including your agent.