Handbook
• DURABLE POWER OF ATTORNEY
Your Durable Power of Attorney allows you to name an individual that can make
financial decisions for you at your direction, or when you are unable to do so
yourself. You will specify the powers and actions that this individual is allowed to
exercise on your behalf. These powers can be as broad or as limited as you
decide.
Your representative can help you keep your financial life in order. Depending
upon the powers that you have given him, he can pay the bills and attend to all
your other financial matters, including matters involving banking, brokerage, real
estate, insurance, business, retirement and taxes.
John did not have a Durable Power of Attorney. During the period when John
became incapacitated and unable to handle his own financial matters, there was
no one named to make those decisions and take those actions for him.
In addition to all the grief his family was suffering, they also had to deal with
unpaid bills, calls from creditors and all the other financial matters that had piled
up. It’s not clear whether John lost any money because no one was handling his
investments, but it was certainly a possibility. Without the Durable Power of
Attorney, John’s family also had to go through the additional delay, process and
expense of getting the permission and authority to handle his financial matters.
Note: Whereas a Durable Power of Attorney takes effect immediately, you can
also choose a Springing Power of Attorney, which can become effective after your
incapacity or at some specified time or event.
