What is a durable financial power of attorney?

A durable financial power of attorney (also referred to as durable POA) is a legal document in which an individual (the “principal”) authorizes another person (the “attorney-in-fact” or “agent”) to act on their behalf in a variety of financial matters. This type of power of attorney grants the agent broad powers, and it is commonly used when the principal is not able to make financial decisions for themselves. In North Carolina, the durable financial power of attorney is governed by the state’s Power of Attorney Act. According to the Act, a durable financial power of attorney must be in writing, signed by the principal, and either notarized or witnessed by two people. The document should also clearly state that the power of attorney is durable in the event of the principal’s incapacity. This means that the document is still valid after the principal becomes incapacitated, and the attorney-in-fact is still allowed to handle financial matters on the principal’s behalf. The exact powers granted to the attorney-in-fact should also be specified in the document. Commonly listed powers include authority over the principal’s bank accounts, investments, life insurance policies, and other financial matters. The durable financial power of attorney is a powerful legal document that should be handled with great care. To ensure that the document is legally binding, it is best to consult with an experienced elder law attorney in North Carolina.

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What is a durable financial power of attorney?

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