What Is a General Durable Power of Attorney and Why You Need One for Your Future?

• William Gall

A general durable power of attorney (GDPOA) is a legal document that gives someone the authority to act on your behalf in legal, financial, and sometimes medical matters. The word “durable” means that this power remains in effect even if you become incapacitated and cannot make decisions for yourself. This makes the general durable power of attorney an essential tool for anyone who wants to ensure that their affairs are managed properly if they are ever unable to do so themselves.

In this article, we’ll explain what a general durable power of attorney is, why it’s important, and how it differs from other types of powers of attorney. We’ll also discuss how to create one when it goes into effect and the responsibilities of the person you choose to act on your behalf.

What Does a General Durable Power of Attorney Do?

A general durable power of attorney allows you to give another person—known as your agent or attorney-in-fact—the legal authority to handle a wide range of tasks for you. These tasks often include managing your finances, paying your bills, handling property transactions, and dealing with legal issues.

Because a power of attorney is “durable,” the person you appoint can continue to make these decisions even if you become mentally or physically incapacitated. This is one of the main reasons why people create a general durable power of attorney—it provides peace of mind that someone trusted will manage your affairs if you can’t do so yourself.

1. Financial Decisions

One of the main responsibilities of an agent under a general durable power of attorney is handling financial matters. This can include tasks like:

• Paying bills, including medical expenses and utilities.
• Managing bank accounts, investments, and retirement accounts.
• Filing taxes on your behalf.
• Managing real estate transactions, such as buying or selling property.

Having someone who can manage your finances is crucial if you are unable to do so due to illness, injury, or other incapacitation.

2. Legal Decisions

A general durable power of attorney also gives your agent the ability to make legal decisions for you. This could involve representing you in court, managing any legal disputes, or signing contracts on your behalf. It’s a broad power that can cover a wide range of legal responsibilities.

3. Healthcare Decisions

While some general durable powers of attorney include the ability to make healthcare decisions, many people create a separate healthcare power of attorney for this purpose. The healthcare power of attorney allows someone to make decisions about your medical care, including treatment options, surgeries, or end-of-life care. It’s important to clarify which decisions you want your agent to make when drafting the document.

Why Is a General Durable Power of Attorney Important?

A general durable power of attorney is important because it ensures that your financial and legal affairs are managed even if you cannot make decisions for yourself. Life is unpredictable, and situations like sudden illness, injury, or even long-term medical conditions can leave you unable to manage your own affairs. Without a durable power of attorney in place, your family may have to go to court to seek the legal authority to make decisions for you, which can be time-consuming, stressful, and costly.

Here’s why having a general, durable power of attorney is so important:

1. Prevents Financial Mismanagement

If you become incapacitated without a general durable power of attorney, no one will have the automatic authority to manage your finances. This can lead to unpaid bills, financial penalties, or even foreclosure if no one is legally allowed to access your accounts or manage your property. By designating an agent, you ensure that your financial matters are taken care of promptly.

2. Avoids Court-Appointed Guardianship

Without a general durable power of attorney, the court may need to appoint a guardian to handle your affairs. This process is often slow and can lead to someone you wouldn’t have chosen being put in charge of your decisions. By creating a GDPOA, you choose someone you trust to act in your best interest, bypassing the need for court intervention.

3. Provides Peace of Mind

Knowing that someone you trust has the authority to make decisions for you can give you peace of mind, especially as you get older or if you’re facing a serious health condition. You’ll know that your agent can handle your affairs and make decisions that reflect your wishes, even if you’re no longer able to express them yourself.

How Does a General Durable Power of Attorney Differ from Other Powers of Attorney?

There are several types of powers of attorney, and it’s important to understand how a general durable power of attorney differs from the others:

1. General Power of Attorney

A general power of attorney gives your agent the same broad decision-making powers, but it is not “durable.” This means it becomes invalid if you become incapacitated. A general power of attorney is useful in situations where you need someone to act on your behalf temporarily, such as if you are traveling abroad and need someone to handle your affairs while you’re away.

2. Limited Power of Attorney

A limited (or special) power of attorney gives your agent authority over specific matters for a set period of time. For example, you might grant someone the power to sell a property for you or manage a specific bank account. Once the task is completed or the time limit ends, the power of attorney becomes void.

3. Healthcare Power of Attorney

A healthcare power of attorney specifically gives someone the authority to make medical decisions for you if you are unable to do so. While a general durable power of attorney can include healthcare decisions, many people create a separate healthcare power of attorney to cover these responsibilities.

4. Springing Power of Attorney

A springing power of attorney only goes into effect if a specific event occurs, such as your incapacitation. Unlike a general durable power of attorney, which takes effect immediately upon signing, a springing power of attorney remains inactive until the triggering event happens.

When Does a General Durable Power of Attorney Go Into Effect?

A general durable power of attorney can go into effect in two ways:

1. Immediately Upon Signing

Many people choose to make their general durable power of attorney effective immediately. This means that once you sign the document, your agent has the authority to act on your behalf right away, even if you are still fully capable of making decisions. However, just because the agent has the authority doesn’t mean they will use it unless necessary.

2. Upon Incapacitation

Alternatively, you can choose to make the general durable power of attorney “springing,” meaning it only goes into effect if you become incapacitated. In this case, a doctor may need to certify that you are no longer able to make decisions for yourself before the agent can begin acting on your behalf. This option is ideal if you want to retain control over your affairs until you are no longer able to manage them.

Who Should You Choose as Your Agent?

Choosing the right person to act as your agent under a general durable power of attorney is one of the most important decisions you’ll make. Your agent will have significant control over your finances, property, and legal matters, so it’s crucial to choose someone you trust completely.

Here are some factors to consider when choosing your agent:

1. Trustworthiness

The person you choose should be someone you trust completely, as they will have access to your financial accounts and personal information. Many people choose a close family member, such as a spouse or adult child, as their agent.

2. Competence

Your agent should be financially responsible and capable of handling the decisions they’ll be asked to make. This may include managing bank accounts, paying bills, and overseeing investments. Choose someone who has a good understanding of financial matters and can make sound decisions on your behalf.

3. Willingness to Serve

Being an agent under a general durable power of attorney can be a time-consuming responsibility. Make sure the person you choose is willing to take on the role and can dedicate the time and energy necessary to manage your affairs properly.

How to Create a General Durable Power of Attorney

Creating a general durable power of attorney involves a few key steps:

1. Consult an Attorney

While there are many templates available online, it’s often best to consult with an attorney when creating a general durable power of attorney. An attorney can ensure the document meets your state’s legal requirements and addresses all of your specific needs.

2. Choose Your Agent

As mentioned earlier, selecting the right person to serve as your agent is critical. Be sure to talk to the person you’ve chosen and make sure they are comfortable taking on this responsibility.

3. Draft the Document

With the help of your attorney, draft the general durable power of attorney document. Be sure to outline exactly what powers you want to give your agent and any limitations you wish to impose.

4. Sign and Notarize

Once the document is finalized, you’ll need to sign it in front of a notary. In some states, witnesses are also required. After signing, make sure your agent knows where the document is stored and how to access it if needed.

Conclusion

A general durable power of attorney is a powerful legal tool that ensures someone you trust can handle your financial, legal, and sometimes healthcare decisions if you become incapacitated. It’s an essential part of any comprehensive estate plan, providing peace of mind that your affairs will be managed according to your wishes, even if you can’t make decisions yourself.

By understanding what a general durable power of attorney is and how it works, you can make informed decisions about protecting your future. Be sure to consult an attorney when drafting this document to ensure it meets your specific needs and state laws.

FAQ’s

Q: What is a general durable power of attorney?
A: A general durable power of attorney is a legal document that gives someone the authority to manage your financial and legal matters, even if you become incapacitated.

Q: How does a general durable power of attorney differ from a regular power of attorney?
A: A general durable power of attorney remains in effect if you become incapacitated, while a regular power of attorney typically becomes invalid in such cases.

Q: Can I create a general durable power of attorney myself?
A: While there are templates available, it’s best to consult an attorney to ensure the document meets your specific needs and legal requirements.

Q: Who should I choose as my agent for a general durable power of attorney?
A: Choose someone you trust completely, who is financially responsible, and willing to take on the responsibility.

Q: When does a general durable power of attorney go into effect?
A: It can either go into effect immediately upon signing or only if you become incapacitated, depending on your preference.