Every person creating an estate plan has different needs. They have the option of creating numerous documents based on their family circumstances and personal resources.
People creating their estate plans also typically need to think about emergency scenarios where they require support from others. Powers of attorney are among the most valuable documents that people draft. They provide another competent adult with the authority to manage financial matters or make medical decisions in an emergency. Some people choose to draft durable powers of attorney.
What separates durable documents from standard powers of attorney?
When the document loses authority
The main difference between a basic power of attorney designating authority to a medical or financial agent and a durable power of attorney is when the document no longer has legal authority. Simple powers of attorney generally lose legal power when the principal who drafted the document becomes permanently incapacitated.
Durable documents do not lose their authority until the incapacitated party regains their testamentary capacity or dies. They can protect an individual from an involuntary guardianship if they develop Alzheimer’s disease or other permanent and debilitating medical conditions.
Without durable documents, a person who drafted powers of attorney could end up subject to a guardianship pursued by a family member or professional caregiver. Durable powers of attorney essentially allow a person to name their own future guardian, should that degree of support eventually become necessary.
Creating a thorough estate plan that addresses both mortality and emergencies can be beneficial for those concerned about their families and their finances. For example, durable powers of attorney are important inclusions for those with medical challenges and people preparing for retirement.
