We’re working on building a Learning Management System to walk you through the Estate Planning Process and we need to tweak the intake form and some software integrations, and hopefully, we’ll have it ready for beta testing in a few day. Written on April 3, 2025.

Durable Power of Attorney

What is a Durable Power of Attorney?

A Durable Power of Attorney (DPOA) is a legal document that allows you to appoint a trusted person, known as your agent or attorney-in-fact, to manage your financial and legal affairs if you become incapacitated or unable to make decisions.

Unlike a standard Power of Attorney, which may become invalid if you become incapacitated, a Durable Power of Attorney remains in effect, ensuring that your financial matters are handled without the need for court intervention.

Why Do You Need a Durable Power of Attorney?

Many people assume their spouse or family members can automatically take over their finances if they become incapacitated. Unfortunately, without a Durable Power of Attorney, your loved ones may have to go through a lengthy and expensive court process to gain authority over your financial affairs.

A Durable Power of Attorney ensures that:

✅ Your finances are managed if you become incapacitated
✅ Your loved ones avoid costly and time-consuming legal proceedings
✅ Your estate plan functions smoothly during emergencies
✅ Someone you trust is in control of your financial and legal decisions

What Can an Agent Do Under a Durable Power of Attorney?

The powers granted under a Durable Power of Attorney can be customized to meet your needs. Common responsibilities include:

🔹 Paying bills and managing bank accounts
🔹 Handling investments and real estate transactions
🔹 Filing taxes and handling financial matters
🔹 Applying for government benefits (Social Security, Medicare, VA benefits, etc.)
🔹 Managing business interests

How Does a Durable Power of Attorney Work?

1️⃣ Choose an Agent – Select a trusted individual (spouse, family member, or friend) to act on your behalf.
2️⃣ Define Their Authority – Specify what powers they have over your finances and legal affairs.
3️⃣ Ensure Durability – Unlike a standard POA, a Durable Power of Attorney remains valid even if you become incapacitated.
4️⃣ Put It in Writing – A properly drafted and signed DPOA is legally binding and enforceable.
5️⃣ Use as Needed – Your agent can step in when necessary, helping manage your affairs smoothly.

Does a Durable Power of Attorney Expire?

A Durable Power of Attorney remains in effect until your death, unless:

  • You revoke it while you are mentally competent.
  • A court determines your agent is acting improperly.
  • The document has a specific expiration date (if you choose to include one).

Durable Power of Attorney vs. Revocable Living Trust

A Durable Power of Attorney and a Revocable Living Trust work together in estate planning:

✔ The Durable Power of Attorney manages assets outside the trust and other financial/legal matters.
✔ The Revocable Living Trust controls assets inside the trust and ensures a smooth transition of property.

Get a Durable Power of Attorney with Vault Estate Planning

At Vault Estate Planning, we help individuals and families create a Durable Power of Attorney as part of a comprehensive estate plan. Our expert team will ensure your documents are properly drafted, legally enforceable, and tailored to your specific needs.