The Durable Power of Attorney is yet another legal document which can be provided by an estate planning attorney. Although similar to the Limited Power of Attorney, there is one major difference.
The Limited Power of Attorney authorizes another person to act on your behalf for your benefit. This document allows an individual of your choosing to help accomplish tasks, assignments, or transactions in line with a specific purpose.
For example, the individual might make bank deposits, withdraws, write checks, sign tax returns, enter into contracts, or even run your business.
Why is this necessary?
Let’s say you own a home in another state and you wish to sell it. Instead of traveling out of state, you can have someone else fill out the necessary paper work on your behalf. Once the assigned task is completed, the person loses their ability to act as your agent.
That is where the Durable Power of attorney differs. Where the Limited Power of Attorney loses effectively with the completion of a task, the Durable Power of Attorney remains valid until the client dies.
Why in the world would you want that?
Using a different scenario, let’s say someone ran and owned a small business. That person becomes ill and fears relapsing, or even worst, becoming incapacitated. The business owner might wish to have a Durable Power of Attorney. That way, the business owner’s agent can run the business. If the owner improves, he or she can go back to work knowing if things decline, their agent is able to step back in to running the business without conflict or the necessity of court intervention.
Both the Limited Power of Attorney and Durable Power of Attorney are valuable legal documents, which could be of great benefit to the right person in the right situation. If you find yourself in need of either one, or if you want more information, please consult with a qualified estate planning attorney.
