Denton County Living Well Magazine January/February 2016 | Page 47

What is a Durable Power
of Attorney and Who Needs One?

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By Lori Leu, Erin Peirce,
Lauren Olson, and Laura Chavero
fter seeing family over the holidays and contemplating the future, some people’s thoughts
turn to making a Will. However, the most important estate planning document is actually a
Durable Power of Attorney.

A Durable or “Financial” Power of Attorney is a legal
document by which you designate someone to serve as
your agent with the legal authority to act on your behalf
in financial affairs, including managing accounts, paying
bills, and selling real property, among others things. Importantly, a Durable Power of Attorney does not give the agent
named the authority to convert your assets to his or her own
benefit; rather, it appoints someone that you trust to handle
your financial affairs on your
behalf if you are unable to
handle them on your own.
So, why is the Durable
Power of Attorney the most
important document in your
estate planning portfolio?
Because without it, no one
is legally authorized to
handle your finances to
help pay for your care.
For example, imagine
that your loved one is diagnosed with dementia.
Previously, they had been
very independent and
never involved anyone in
their finances. However, you recently noticed overdue bill
notices on the counter and stacks of unopened packages
and mail. Upon further investigation, you discover a large
amount of debt and very little savings. Unfortunately, your
loved one is unable to live alone and needs additional
help. However, their income is not sufficient to pay the cost
of assisted living, there is no long-term care insurance, and
they are not eligible for public benefits. Unless your loved
one has named you as their agent in a Durable Power of
Attorney you will be unable to access their funds to pay for
their care. You will be unable to sell their assets, including
their house, to keep t