A durable power of attorney is used to appoint someone to manage your financial
affairs if you ever become incapacitated. Much like a medical power of
attorney, a durable power of attorney can come into play at various points
in your life. If an injury or illness makes you unable to manage your
finances, the person you designate under your durable
power of attorney will be responsible for paying your bills and managing your real estate
property and personal assets in accordance with the terms you have put in place.
If you have a statutory durable power of attorney, you might be able to
avoid having to get a guardianship of your estate, which could cost you
thousands of dollars. You can reference a Statutory Durable Power of Attorney form on
The Texas Department of Health and Human Services’ (HHS) website.
Although it can be helpful to review the form to see what a durable power
of attorney entails, you should consult with an experienced
estate planning lawyer to find out how to make sure your durable power of attorney documents
are properly completed and filed. These forms can be confusing and do
not always have the best options for your situation. Although a durable
power of attorney can be revoked at any time until you become incapacitated,
you do not want to have your signature on a document that does not protect
or reflect your wishes.
You decide the powers that you want to grant in your agreement. The most
common examples of options included in a durable power of attorney include:
- Paying bills for monthly expenses and health care
- Managing your checking and savings account funds
- Management of your retirement accounts and investment portfolios
- Overseeing Social Security, Medicare, Medicaid and other government program benefits
- Purchasing, changing , or terminating insurance coverage
- Buying and selling real estate and personal property
- Deciding on tax-related issues
You can make your durable power of attorney as general or specific as you
would like it to be. You can decide to include specific parameters for
assets that can or can’t be sold. You can also direct how certain
funds should be used in your absence. If you want, you can put controls
in place that make sure the transactions made on your behalf don’t
have unforeseen implications on the rest of your estate. When picking
the person to carry out your wishes, you should choose someone you trust
and who has demonstrated that they are capable of effectively managing
your affairs.
At J. Roland Jeter, P.C., we are here to help with all of your estate planning
needs. Our legal team can assess your situation and devise an estate plan
that protects your interests. We will walk you through the entire process
and ensure that your family will be taken care of in the event that you
become incapacitated.
Call (972) 330-4050 to setup a free 30-minute consultation with our Irving
estate planning lawyer.