What is a durable power of attorney?
A durable power of attorney is a legal document that allows an individual, known as the principal, to appoint another person, known as the attorney-in-fact or agent, to act on their behalf. The principal can give their agent the right to make decisions with regard to their finances, health care, or other matters. In North Carolina, a durable power of attorney can be used for disability planning. It is important to understand that this document becomes effective immediately upon signing, and the attorney-in-fact will then be able to make decisions on behalf of the principal. When the document is created, the principal can provide instructions on the scope of their agent’s authority, such as the ability to make decisions related to taxes, investments, property, and health care. If the principal becomes incapacitated or unable to make decisions, then the durable power of attorney document will remain in effect, allowing the attorney-in-fact to continue to act on their behalf. It is important for the principal to ensure that they trust their agent to make decisions in their best interests. The document can be modified or revoked at any time by the principal as long as they are competent. In addition, it is important to understand that a durable power of attorney is a powerful document, and it is recommended that individuals consult with an attorney before signing this document.
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