What is a Durable Power of Attorney, and why would I need one?

A. A Durable Power of Attorney is a document that appoints someone else to act for you in a legal capacity. Under a Durable Power of Attorney, you will name someone you trust as attorney-in-fact, and he or she will be able to take actions of all kinds on your behalf. This can be necessary in the event of your disability, or even if you are out of town for an extended period. The term “durable” means that it remains effective even if you are no longer competent to act for yourself. An attorney-in-fact could use his/her power of attorney to take money out of accounts, buy or sell stock, distribute money to others, file your tax return, take distributions from your IRA, sell or mortgage your house, or do anything else that you can do. Obviously, this should only be given to someone you trust completely. You can delegate this power effective immediately, or you can provide that it is effective only if you should become incompetent. As with many aspects of a good estate plan, it may never ...  more