Answers to frequently asked questions
Power of Attorney:
What is a Durable Power of Attorney for financial matters?
A Durable Power of Attorney is a legal document that authorizes another person—called an agent (or attorney-in-fact)—to handle your financial and business affairs during a period of incapacity. It grants broad powers, such as managing bank accounts, paying bills, selling property, handling investments, and more.
When does a Durable Power of Attorney become effective?
A Durable Power of Attorney can become effective immediately upon signing or can be “springing,” meaning it only takes effect upon a specific event, such as your incapacity. At Jeffrey Orr Law, PC, we help you determine the right structure based on your goals and preferences.
Who should I choose as my agent?
Choosing an agent is an important decision. You should select someone you trust completely, who is responsible, financially savvy, and willing to act in your best interests. Some people choose a family member, while others may opt for a trusted friend or professional advisor.
Can I limit what my agent can do?
Yes. While a Durable Power of Attorney is typically broad, you can set specific limits or instructions on the powers your agent is granted. We can customize your document to reflect your exact wishes and protect your financial interests.
Can I revoke my Durable Power of Attorney?
Absolutely. As long as you are mentally competent, you can revoke or change your Durable Power of Attorney at any time. We recommend notifying your agent in writing and informing any relevant institutions, such as banks, if you make changes.
What happens if I don’t have a Durable Power of Attorney?
If you become incapacitated without a valid Durable Power of Attorney, your loved ones may need to seek a court-appointed conservatorship to manage your finances. This process can be time-consuming, expensive, and emotionally stressful. A Durable Power of Attorney helps you avoid this situation by appointing someone ahead of time.
Does a Durable Power of Attorney continue after my death?
No. A Durable Power of Attorney automatically terminates upon your death. At that point, the authority to manage your assets passes to the executor or personal representative named in your will or appointed by the court.
How often should I update my Durable Power of Attorney?
It’s a good idea to review your Durable Power of Attorney every few years, especially if you experience major life changes such as marriage, divorce, relocation, or significant changes in your financial situation. An outdated document may not meet your current needs.
Is a General Power of Attorney different from a Durable Power of Attorney?
A General Power of Attorney can be durable or non-durable. A Durable Power of Attorney remains in effect even if you become incapacitated, whereas a non-durable one would end upon incapacity. At Jeffrey Orr Law, PC , we typically recommend making your General Power of Attorney durable to ensure continuous protection.