power of attorney

(redirected from Durable power of attorney)
Also found in: Dictionary, Thesaurus, Medical, Financial, Acronyms, Encyclopedia.
Related to Durable power of attorney: Durable Power of Attorney for Health Care

Power of Attorney

A written document in which one person (the principal) appoints another person to act as an agent on his or her behalf, thus conferring authority on the agent to perform certain acts or functions on behalf of the principal. Powers of attorney are routinely granted to allow the agent to take care of a variety of transactions for the principal, such as executing a stock power, handling a tax audit, or maintaining a safe-deposit box. Powers of attorney can be written to be either general (full) or limited to special circumstances. A power of attorney generally is terminated when the principal dies or becomes incompetent, but the principal can revoke the power of attorney at any time.

A special type of power of attorney that is used frequently is the "durable" power of attorney. A durable power of attorney differs from a traditional power of attorney in that it continues the agency relationship beyond the incapacity of the principal. The two types of durable power of attorney are immediate and "springing." The first type takes effect as soon as the durable power of attorney is executed. The second is intended to "spring" into effect when a specific event occurs, such as the disability of the principal. Most often, durable powers of attorney are created to deal with decisions involving either property management or health care.

Durable powers of attorney have become popular because they enable the principal to have her or his affairs handled easily and inexpensively after she or he has become incapacitated. Before the durable power of attorney was created, the only way to handle the affairs of an incapacitated person was to appoint a guardian, a process that frequently involves complex and costly court proceedings, as well as the often humiliating determination that the principal is wholly incapable and in need of protection.

With a durable power of attorney, on the other hand, a principal can appoint someone to handle her or his affairs after she or he becomes incompetent, and the document can be crafted to confer either general power or power in certain limited circumstances. Because no judicial proceedings are necessary, the principal saves time and money and avoids the stigma of being declared incompetent.

The concept of the durable power of attorney was created in 1969 when the National Conference of Commissioners on Uniform State Laws promulgated the Uniform Probate Code (U.P.C. § 5–501). Ten years later, the provisions of the code dealing with the durable power of attorney were modified and published as the Uniform Durable Power of Attorney Act (UDPA). All fifty states recognize some version of the durable power of attorney, having adopted either the UDPA or the Uniform Probate Code, or some variation of them. Versions of the durable power of attorney vary from state to state. Certain powers cannot be delegated, including the powers to make, amend, or revoke a will, change insurance beneficiaries, contract a marriage, and vote.

Further readings

Insel, Michael S. 1995. "Durable Power Can Alleviate Effects of Client's Incapacity." Estate Planning 22 (February).

Rains, Ramona C. 1996. "Planning Tools Available to the Elderly Client." American Journal of Trial Advocacy 19 (spring).

Cross-references

Living Will.

power of attorney

n. a written document signed by a person giving another person the power to act in conducting the signer's business, including signing papers, checks, title documents, contracts, handling bank accounts and other activities in the name of the person granting the power. The person receiving the power of attorney (which means agent) is "attorney in fact" for the person giving the power, and usually signs documents as "Melinda Hubbard, attorney in fact for Guilda Giver." There are two types of powers of attorney: a) general power of attorney which covers all activities, and b) special power of attorney which grants powers limited to specific matters, such as selling a particular piece of real estate, handling some bank accounts, or executing a limited partnership agreement. A power of attorney may expire on a date stated in the document or upon written cancellation. Usually the signer acknowledges before a notary public that he/she executed the power, so that it is recordable if necessary, as in a real estate transaction.

power of attorney

an authority given by one person to another to act in his absence.

POWER OF ATTORNEY. Vide Letter of attorney, and 1 Mood. Or. Cas. 57, 58.

References in periodicals archive ?
The Ridleys argued that an injunction was proper because Shoemaker never had authority to act as Collins' attorney in fact under the durable power of attorney.
general durable power of attorney or special durable power of attorney).
You may want to talk with a lawyer about setting up a general power of attorney, durable power of attorney, joint account, trust, or advance directive.
The court added that although the son had the authority to commence this lawsuit by virtue of the durable power of attorney, the wrongful death action "belonged" to the nursing home resident.
However, when they do, their decisions are often ascribed to their dementia, and staff feel obliged to seek alternative input from a responsible party or durable power of attorney.
In many states, a durable power of attorney for health care is operative only if and when a patient who has executed a durable power of attorney for health care is no longer capable of making his or her own decisions relative to his or her treatment.
The definition of a durable power of attorney, according to the Uniform Probate Code, is:
He continues: "A durable power of attorney for health care is necessary to carry out your health care wishes in the event you are unable to speak, 2write, or think clearly.
The Durable Power of Attorney for Healthcare (DPOA-HC) is a state-specific legal document that complements a state's Surrogate Act.
You cannot damn the living will without also damning the durable power of attorney, although the reverse is not always true.
Many estate planners now recommend that taxpayers execute four documents when they are planning for the future: a testamentary will, a living will, a durable power of attorney for health care, and a durable power of attorney for finances.