What Is a Durable Power of Attorney (POA)?

What is a durable power of attorney?

A durable power of attorney (POA) permits someone to make financial or health care decisions on your behalf. Unlike a standard power of attorney, a durable POA allows someone to act on your behalf even if you become medically incapacitated.

Durable POAs can be an important part of estate planning, especially if you are likely to face incapacity or cognitive decline. In a health care setting, providers might turn to your next-of-kin — from a spouse to a distant cousin — for decisions about what you may want.

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Pros and cons of a durable power of attorney

Types of durable power of attorney

• Financial.

  The designated agent can manage all your financial affairs while you’re incapacitated, including paying your bills and taxes and paying professionals to assist with your assets.

• Medical.

  Your agent, also called a health care proxy or surrogate, can execute your wishes for medical treatments or procedures and work with your health care providers to advocate for your needs. You can give your agent guidelines for your preferences by creating a living will.

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Durable POA vs. living will

The main difference between a durable POA and a living will is that a durable power of attorney (also called a health care proxy) specifies who can make medical decisions on your behalf in case of incapacity, while a living will explains what medical treatments you want if you’re incapacitated, including your preferences for resuscitation, comfort care and organ donation.

Ideally, the agent you give power of attorney to uses your living will as a guide to make health care decisions that align with your wishes. People often combine medical durable POAs and living wills to create a single advance directive.

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How to set up a durable power of attorney

There are several ways to set up a durable power of attorney. Here are a few options:

• Download a state-specific template, which is often included with online estate planning and will software packages.

• Consult an estate planning attorney who can draft the document for you and tailor it to your unique situation.

After you have your document ready, follow these steps:

• Name a backup or successor agent in case your agent becomes sick or incapacitated.

• Have your document signed by witnesses or notarized, depending on state laws.

• File your durable POA document with your other estate planning directives, and give a copy to your health care provider.

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