What is a durable financial power of attorney?

A durable financial power of attorney (POA) is an estate planning tool used in Texas to grant someone else the legal authority to manage the financial affairs of an individual. The POA is signed by the principal (the individual granting the authority) and a witness, and is typically notarized. The durable part of the POA means that the POA will remain in effect even if the principal becomes incapacitated. The principal can also specify when the POA should take effect, such as immediately or upon the occurrence of a specified event. The power granted by the POA is usually wide-ranging and includes the ability to open and close bank accounts, make investments, transfer assets, pay bills, and do any other type of financial transaction that the principal would undertake. Although the person granted the power of attorney has a fiduciary responsibility to act only in the best interests of the principal, it is important to choose someone you trust as it is a great responsibility. The power of attorney can be revoked or modified at any time as long as the principal is competent mentally. It is important to understand the limits of a durable financial power of attorney and be aware of the risks associated with granting someone else this power. For this reason, it is important to consult an estate planning lawyer if you are considering creating a durable financial POA.

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What is a durable financial power of attorney?

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