A General Durable Power of Attorney typically has some role in proper estate planning.  When you have a Living Trust that role may be limited, but when you are relying on beneficiary transfers at death, the role of the General Durable Power of Attorney could become quite significant if you ever become unable to handle your financial affairs while you are still alive.

A power of attorney is a document by which you grant to another person, your Agent, the authority to act on your behalf.  A "general" power of attorney is typically for all purposes.  A "durable" power of attorney is one that will continue to grant authority to your Agent even after you may have become incapacitated.  Typically all powers granted under a power of attorney cease upon the death of the person that originally executed the power of attorney.

The are two significant issues associated with the use of General Durable Power of Attorney documents, namely, usability and accountability.

1. Accountability.  You need to really trust the person to whom you grant a General Durable Power of Attorney.  In effect you are giving them broad authority to do as you could do.  In most states, the Agent's duty to account for his or her actions is limited to accounting to the person who granted the Agent the authority to act in the first place.  If you are that person, and you are incapacitated, then other family members may be forced to file an action in the probate court in order to receive an accounting.

2. Usability. If you intend to rely upon an Agent under a General Durable Power of Attorney to handle all of your financial matters if you become incapacitated, then don't plan to place the document in a file and hope your Agent can take the document to your bank, broker or insurance company 10 to 15 years from now and expect the financial instution to automatically accept the Agent's authority to act under that power of attorney "no questions asked".       

To learn more call 816.415.9455 today to schedule a free consultation!

Note: We DO NOT provide free reviews to persons seeking a review of unexecuted documents downloaded from the internet!  We DO NOT offer free legal advice.  We DO NOT respond to calls or e.mails to our office from those seeking free legal advice.  We DO offer a free initial consultation to those persons that are serious about establishing a proper estate plan or updating an existing estate plan.