Question of the Week

Posted: Aug 25, 2022 | Author: Cornerstone Compliance Team

compliance POA

Question: What makes a power of attorney (POA) durable?

Answer: Durability means that powers delegated to an agent under POA do not expire when the person creating the POA becomes incapacitated or incompetent. There will be language that reflects this desire in the POA document.

If a POA does not have language indicating durability, then the powers within the document expire when the person creating the POA becomes incompetent, incapacitated, or another similar event.

This distinction is important in estate planning, as a person may wish to designate a person to handle his/her affairs in the event of a sudden or long-term health issue. If there was no durable language, the POA would be ineffective at the time of that event and useless in handling the person’s affairs.