A durable power of attorney is a legal document that a person (the principal, grantor, or donor) signs to appoint another person as the grantor’s agent or attorney-in-fact—with authority to make financial and property-related decisions on behalf of the principal—including transactions involving business interests, investments, insurance, taxes, bills, real estate, stocks, bonds, commodities, personal property, Social Security, Medicare, Medicaid, and other financial matters.
A traditional power of attorney is effective only while the principal has full mental capacity, but a durable power of attorney remains effective if the principal becomes physically or mentally disabled or incapacitated (incompetent) from a stroke, Alzheimer’s disease, an automobile accident, or other cause. In some states the legislature has provided a form durable power of attorney in a statute (law) and the document may be referred to as a statutory durable power of attorney.
In Texas, a Durable Power of Attorney (DPOA) is a legal instrument that allows an individual, known as the principal, to designate another person, called an agent or attorney-in-fact, to manage their financial and property affairs. This includes handling business matters, investments, insurance, taxes, and real estate transactions, among others. The Texas Estates Code provides a statutory form for a DPOA, which is designed to meet the legal requirements of the state. Unlike a traditional power of attorney, which loses its effectiveness if the principal becomes incapacitated, a DPOA in Texas remains in effect even if the principal suffers from a physical or mental disability, ensuring that the agent can continue to act on the principal's behalf without interruption. It's important for the principal to carefully choose a trustworthy agent, as the powers granted in a DPOA are extensive and can have significant implications for the principal's financial well-being.
