The Durable Financial Power of Attorney allows you to appoint someone you trust to manage your financial affairs and responsibilities when you are unable to act or communicate on your own. Unlike a General Financial Power of Attorney, which becomes void if you’re incapacitated, a Durable Power of Attorney remains in effect, ensuring that your appointed agent can act on your behalf without interruption. It’s an essential tool that allows your designated agent to handle your finances if you cannot do so yourself.

Why You Need a Durable Power of Attorney

Imagine a situation where you are unconscious or cannot make decisions due to illness or injury. Your loved ones might have to go through lengthy and costly court proceedings to be granted the right to manage your affairs. 

If you had a Durable Power of Attorney in place, your agent could step in and start paying your bills, transferring funds, and handling other financial matters on your behalf.  Providing this authority in advance relieves your family from the potential stress and expense of dealing with the courts during a difficult time.

Maintaining Control and Flexibility

When we set up a Durable Power of Attorney for you, you get to choose who will exercise that power, and you can set limits on their control over your assets. For instance, you might specify that your agent can control your checking account and money market account but not your brokerage accounts.

While a Durable Power of Attorney grants significant powers to your agent, it doesn’t strip you of control over your affairs as long as you’re capable. We emphasize this aspect to all our clients, ensuring they understand that a Power of Attorney is a document of empowerment, not relinquishment.

You do not give your agent an ownership interest in your assets as you would if you simply added their name to your bank accounts. This protects your assets. In addition, you have the right to revoke or change your Durable Power of Attorney at any time, as long as you remain legally competent.

Choosing Your Agent Wisely

When selecting an agent for your Durable Power of Attorney, consider someone who is trustworthy, financially savvy, and understands your wishes well. This person should be someone you believe will act in your best interests and have the capability to immediately manage complex financial matters.  This should be someone who you can speak freely with about your financial affairs.

It’s a significant responsibility. At Blacksburg Law, we can help you understand what qualities to look for and discuss the importance of your choice with your loved ones.

Often one of the biggest concerns people express with a Durable Power of Attorney is how to ensure that their agent respects their wishes. We recommend having a frank and open discussion about your values, preferences, and instructions with the person you intend to name as your agent.