As people age, it becomes increasingly important to plan for the future and ensure that their affairs are in order. One crucial aspect of this planning involves the creation of a statutory durable power of attorney (SDPOA). This legal document grants authority to another person, known as an agent or attorney-in-fact, to address legal and financial issues and make certain types of decisions on behalf of the elder in the event that they become incapacitated. To ensure that these issues will be addressed correctly, elders and their family members can work with an estate planning lawyer to create powers of attorney.
What Is a Statutory Durable Power of Attorney?
A statutory durable power of attorney allows an individual, known as the principal, to appoint a trusted person to act on their behalf in financial and legal matters. The power of attorney can be effective immediately, or it can become effective only if the principal is incapacitated. The agent appointed in the SDPOA has the authority to manage the principal's finances, pay bills, make investment decisions, and handle other legal matters.
It is important to note that a statutory durable power of attorney is different from a medical power of attorney or a healthcare directive. While a medical power of attorney will give a trusted person the ability to make healthcare decisions, an SDPOA specifically deals with financial and legal matters.
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