Durable Power of Attorney: A Basic Guide
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If you become catastrophically injured or terminally ill and unable to consciously make decisions, who would be able to make them for you?
While many people assume that a spouse or child automatically has authority, this assertion is not the case without having to jump through legal hoops. By the time they receive power to make decisions on your behalf, it could be far too late in some situations.
Instead of leaving yourself exposed, draft and execute a durable power of attorney to protect your rights and provide your loved ones with peace of mind. Continue reading to learn everything you need to know about durable powers of attorney.
What is a Durable Power of Attorney?
Durable powers of attorney (DPOA) allows someone to act as an attorney-in-fact agent on behalf of the principal. Powers extend to authority over financial, medical, and legal affairs decisions if the principal cannot do so. It is a document intended to make the decision-making process as easy and quickly as possible for the agent.
People generally assign durable powers of attorney to:
- Spouses
- Partners
- Adult children
- Parents
- Grandparents
- Siblings
- Attorneys
The person you choose to act as a durable power of attorney should be someone you trust implicitly. This individual may be called upon to render decisions on your behalf and in your best interest. It is also helpful to select a person with whom you routinely interact so that they have a better understanding of how you make personal decisions.
A durable power of attorney ends when specific conditions are met. You have the right to revoke these powers at any time and on your own free will. However, they will automatically end upon your death regardless of preceding events.
Difference Between Durable Power of Attorney and General Power of Attorney
The primary difference between a durable power of attorney and general power of attorney is that durable POAs remain intact until the principal either revokes authority or dies while the latter ends upon principal incapacitation. They also share different purposes as well.
Since this article focuses on durable powers of attorney, let’s take a brief but closer look at general powers of attorney.
General Power of Attorney
A general power of attorney offers support to the principal while still alive and able to consciously make independent decisions. There are usually specific healthcare issues that necessitate using a general power of attorney, such as a mental illness or catastrophic injury.
Reasons to use a general power of attorney include:
- Handle financial matters
- Operate an owned business
- Manage and discuss insurance policies
- Making doctor’s appointments
- Discuss medical records
- Issue critical decisions in their place
- Retain legal rights to specific designations
There are many tangible reasons to use a general power of attorney when a person is still alive and cognitive. However, a general POA does not address issues once the principal becomes incapacitated. Let’s look at this situation more closely and other reasons to use a durable power of attorney.
Here is an article on Power of Attorneys.
Reason to Use a Durable Power of Attorney
Reasons to use a durable power of attorney primarily center around a specific triggering event. Sometimes these events lead to family lawyers calling the document a “springing POA” when certain conditions are met—for example, your durable power of attorney “springs” into effect upon your incapacitation.
There are two types of springing POAs that you can use, including a durable power of attorney for health care and a durable power of attorney for finance.
Durable Power of Attorney for Health Care
Durable powers of attorney (DPOA), also known as a medical power of attorney, for health care allows a proxy to make medical decisions on your behalf if you become injured or terminally ill, rendering you incapacitated. It is also a limited power of attorney because the proxy cannot make legal decisions on unrelated matters, such as financial affairs.
Durable Power of Attorney for Finance
Durable powers of attorney (DPOA) for finance, also known as a financial power of attorney, allow your proxy to make financial decisions for you if you become incapacitated or unconscious. They can authorize transactions, make withdrawals, open new accounts, and speak with the bank on your behalf. Your financial DPOA must be someone you know and trust well since they have direct access to your financial accounts.
There are other types of legal powers of attorney. However, the above-referenced documents are used most commonly. Always speak with estate planning lawyers about your options if you have questions.
Durable Power of Attorney Templates
Important Clauses in a Durable Power of Attorney
Durable POAs must contain specific guidelines and provisions like any other contract. Missing essential clauses in a durable power of attorney can render them invalid or unenforceable. This situation will lead to additional legal issues with which your family must contend.
Important clauses in a durable power of attorney agreement include:
- Introduction of the parties
- Specific delegate powers
- Choice of law clause
- Acceptance
- Signature block with datelines
- Notarization block
The above-referenced list is a simple outline of the critical durable power of attorney clauses that you will want to incorporate into your documents. However, other provisions are necessary, especially when creating a springing power of attorney, such as a medical POA or financial POA. You can learn more about your legal rights and options by getting legal help with your durable power of attorney.
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Get Help With Your Durable Power of Attorney
A durable power of attorney is one component of a solid estate plan. This document will grant your loved ones the authority to act on your behalf, but you could also benefit by engaging the estate planning process to take tax advantages, ensure your final wishes are met, avoid probate, and leave a lasting legacy.
Other estate planning documents that you may want to consider with your durable power of attorney includes:
- Pour over or living wills
- Advance health directives
- Revocable living trust
Probate lawyers and estate planning lawyers in your state can help you draft and sign these documents while ensuring that you meet your end-of-life objectives. It is challenging to determine which type of estate plan you need without speaking to a legal professional.
Efficient Legal Help for Spouses
Attorneys can also assist other family members. If you have a spouse, they will most likely need one, too, if not already in place. You and your spouse can work with the same individual to ensure a cohesive strategy is in place.
Effective Legal Analysis
Your durable power of attorney and overarching estate plans should reflect your financial, medical, and legal situation. Estate planning lawyers have professional training to spot indirect issues that could affect your plans. Avoid legal mistakes and redundancies by hiring a legal team to draft your documents early on.
Ongoing Support to Update Documents
It is not unusual for someone’s situation to change over time. Your attorney can offer you ongoing maintenance services on your durable power of attorney and other estate planning documents. It is usually comforting and encouraging to know that someone can help you as necessary.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
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Meet some of our Durable Power of Attorney Lawyers
Ryan D.
Ryan Duffy is a skilled attorney with extensive experience in business law and estate planning. He received his undergraduate degree in Business from Franklin & Marshall College and went on to graduate from Villanova University Charles Widger School of Law. Ryan has worked with numerous clients on matters ranging from business formation and contract drafting to estate planning and asset protection. He is dedicated to helping businesses of all sizes achieve their goals while minimizing legal risks. He also works closely with individuals and families to help them protect their assets and plan for the future. With his extensive knowledge and practical approach, Ryan can provide valuable legal guidance and support to clients in need of business law and estate planning services.
"Awesome work, really put my mind at ease during a contract dispute with a major company."
Daehoon P.
Daehoon P.
Corporate, M&A & Securities Lawyer | Managing Attorney, DP Counsel PLLC Practice Areas: Business Formation | Commercial Contracts | Contract Drafting & Review | Mergers & Acquisitions | Venture Capital | Securities Offerings | Franchise Law | Employment & Equity Compensation | Intellectual Property | Cross-Border Transactions About/Bio: I represent companies, investors, and fund sponsors in corporate transactions, commercial contracting, and private securities matters, from entity formation and early-stage financings to acquisitions, exits, and ongoing strategic counsel. As Managing Attorney of DP Counsel PLLC, I help clients structure transactions clearly, allocate risk thoughtfully, and move deals forward with documentation that is practical, enforceable, and aligned with business objectives. My practice includes both day-to-day commercial matters and more complex transactional work, including venture financings, private offerings, M&A deals, fund-related documents, and cross-border structuring. What I Do: Corporate & Commercial • Entity formation and structuring for corporations, LLCs, and limited partnerships • Operating agreements, shareholder agreements, and governance documents • Commercial contract drafting, review, and negotiation • Vendor, distribution, manufacturing, SaaS, and licensing agreements • Employment, consulting, confidentiality, and equity compensation agreements • Outside general counsel support for growing companies Securities & Private Capital • Private offerings under Regulation D and Regulation S • Private placement memoranda, subscription agreements, and investor documents • SAFE, convertible note, and priced equity financings • Venture capital and private fund formation matters • Fund governing documents and offering document packages • Securities law analysis for private capital raising transactions Mergers & Acquisitions • Letters of intent and term sheets • Stock purchase, asset purchase, and merger agreements • Due diligence coordination and transaction support • Disclosure schedules, closing documents, and post-closing matters • Earnouts, rollover equity, indemnity structures, and related deal terms • HSR, CFIUS, and related regulatory issue spotting for qualifying transactions Digital Assets & Emerging Technologies • Federal-law digital asset and token securities analysis • Entity structuring for blockchain and Web3 ventures • Digital asset fund and operating structures • AML/KYC documentation support and regulatory issue spotting Franchising • Franchise Disclosure Documents (FDDs) • Franchise agreements • Master franchise and area development agreements • Franchise structuring and registration coordination Real Estate Transactions • Commercial real estate acquisitions and dispositions • Real estate joint ventures and syndications • Commercial lease drafting and negotiation • Real estate investment structures and related offering documents Cross-Border & International • U.S. market entry and entity structuring for international clients • Delaware and multi-entity holding structures • Cross-border transaction planning and documentation • Coordination with foreign counsel and tax advisors on cross-border matters Why Clients Hire Me: • Big-law-level drafting with boutique responsiveness • Practical, business-focused advice grounded in execution reality • Clear scoping and transparent fee arrangements • Experience across financings, acquisitions, fund formations, and cross-border transactions Typical Projects: • Contract drafting and negotiation • Entity formation and governance packages • Private offering document suites • Venture financing documentation • M&A transactions from LOI through closing • Fractional or outside general counsel support Industries Technology | SaaS | FinTech | Digital Assets | E-commerce | Healthcare | Real Estate | Food & Beverage | Professional Services
"Thanks Daehoon for going above and beyond and helping me with a lot of detailed information regarding signing multiple contracts. I was very happy with the outcome. Best"
Daniel R.
NY Admitted Lawyer 20+ years of experience. Focused on Startups , Entrepreneurs, Entertainers, Producers, Athletes and SMB Companies. I have been a part of numerous startups as Founder, CEO, General Counsel and Deal Executive. I have been through the full life cycle from boot strap to seed investors to large funds-public companies to successful exit. Let me use my experiences help you as you grow your business through these various stages. We saw a market for an on-line platform dedicated to Virtual General Counsel Services to Start Ups and Private Companies.
"Dan did a good job on identifying the gaps and also provided recommendations. He stayed on time as well. Thanks Dan,"
Bryan B.
Experienced attorney and tax analyst with a history of working in the government and private industry. Skilled in Public Speaking, Contract Law, Corporate Governance, and Contract Negotiation. Strong professional graduate from Penn State Law.
"Bryan was swift, communicative, and incredibly helpful. Will definitely work with him again!"
Elizabeth J.
Libby Jamison founded E. Grace Law Firm after nearly two decades practicing law across federal agencies, private firms, and nonprofit organizations. She has advised at the highest levels of government and built a career defined by tackling complex, high-stakes legal and policy challenges. Her practice focuses on business, employment, veteran, and family law matters, drawing on her wide scope of experience including nearly seven years as counsel at the Department of Veterans Affairs. Her legal experience spans federal agency counsel, firm ownership, and nonprofit work. She is licensed to practice in California and Washington and was admitted to the U.S. Supreme Court. Beyond legal practice, she has led as a nonprofit president, chaired a U.S. Chamber of Commerce economic empowerment zone, and served on an American Bar Association Standing Committee on Legal Assistance for Military Personnel. Her work has been recognized by: Mighty 25 Awardee (2023) Changemaker of the Year, Military.com (2019) Bush Institute Stand-To Veteran Leadership Scholar (2019)
"Libby is amazing to work with! She was very thorough and got everything done ahead of schedule. I look forward to working with her again in the future"
Thomas S.
28+ years experience. Licensed in Colorado and New York. Areas of expertise: estate planning, wills and trusts; trademark law; patent law; contracts and licensing; small business organization and counseling.
"Thomas was very knowledgeable and is great to work with! Thank you very much - looking forward working together again in the future!"
Dean S.
Dean represents client in all manners of tax controversy and provides comprehensive business consulting to corporations, LLCs, and non-profits. He has worked with multi-national companies, but most enjoys assisting small businesses with all legal matters from formation to dissolution. Dean routinely represents individuals and businesses before the IRS and various state taxation agencies. From audits to appeals, he works closely with his clients to reach favorable outcomes and beneficial resolutions. Though he assists many clients in his home state of California, Dean values working with a diverse clientele throughout the country.
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Durable Power of Attorney
Colorado
How does a durable power of attorney work when the person dies?
If you have a durable power of attorney and the person dies, do you still have the authority or does it go to the spouse. I have a durable power of attorney for my aunt, she just died and I'm trying to take care of her funeral and things. Does her husband now have the right to make decisions or myself with the durable power of attorney?
Sarah D.
A Durable Power of attorney for finances (and healthcare) expires once your aunt dies. It is the executor of her will who now acts in that stead related to her finances. If the executor is the spouse, it will be his right to make the decisions. However, if all property was jointly owned between spouses, there is no need to probate the will under Colorado law.
Estate Planning
Durable Power of Attorney
North Carolina
Can someone who has POA & is a caretaker of a family member in an assisted living facility receive compensation for services rendered from the family member’s estate?
I have a cousin that has taken on sole responsibility for the care of my aunt (95 yrs old), who is now in an assisted living facility. He has spent countless hours handling the sell of her house, enrolling her into an assisted living facility, daily visits, taking her to doctor’s visits and handling any issues that may arise. Family members of my aunt would like to compensate my cousin for all his time spent in caring for my aunt. Can my cousin be paid a monthly compensation from my aunt’s estate? Can each family member sign a statement (and have it notarized) that they are in agreement for this money to be paid monthly to our cousin for his services? What steps would we need to take to make this happen? We just want to make sure it is all done legally.
Jazmin C.
I would say yes, especially if it is in the power of attorney that they can be compensated. If you want to reduce that down to a payment agreement, you can; it may not be necessary, but you can definitely do that. I would start with the durable power of attorney first!
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ContractsCounsel User
I need to see what it takes to get a Power of attorney for my mom. She's in bad shape, in a bad place. And her health is in poor condition. I need help in this. Thanks again
Location: North Carolina
Turnaround: Less than a week
Service: Drafting
Doc Type: Durable Power of Attorney
Number of Bids: 2
Bid Range: $250 - $550
ContractsCounsel User