What is a durable power of attorney?
A durable power of attorney is a legal document that designates someone, known as an attorney-in-fact, to make decisions and act on behalf of another person. The attorney-in-fact is usually given broad authority to act, and the document typically becomes effective immediately. In Indiana, a durable power of attorney can be used to grant authority over the care and management of a person’s financial assets and legal transactions. A durable power of attorney is specific to each state, so the details of the document may vary from one state to another. In Indiana, a durable power of attorney is authorized by the Indiana Statutes Annotated 30-5-5 and must be in writing and witnessed by two people. The person who grants the authority, known as the principal, can include provisions that the document will take effect even if the principal becomes physically or mentally incapacitated. Indiana also allows the principal to limit the authority of the attorney-in-fact. The durable power of attorney is important for estate planning, particularly when property or assets must be managed or distributed after a person’s death. It can be used to designate a trusted family member, friend, or business partner to handle these decisions. In addition, the durable power of attorney can be used to assign authority if the principal is unable to make or communicate decisions due to physical or mental illness.
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