One of the most powerful documents in the estate planning tool kit, a durable general power of attorney allows one person (the principal or donor) to designate a trusted person (the attorney-in-fact, or agent) to make any and all financial, business and personal decisions on the principal’s behalf. A broadly worded power of attorney allows the attorney-in-fact to make gifts of the principal’s assets, buy and sell real estate, deal with the IRS, create a trust, purchase an annuity, engage in long term care planning, and do anything the principal could do as if the principal were personally present.

A durable power of attorney can be effective immediately and continue in effect if the principal becomes incapacitated. In most cases, the existence of a validly executed durable power of attorney eliminates the need for family members to petition the probate court for appointment of a guardian or conservator for an incapacitated or incompetent loved one.

A “springing power of attorney” can be drafted to take effect upon the occurrence of some event, such as the principal’s illness or incapacity. However, because these often necessitate a court or physician’s intervention in order to become effective, springing powers of attorney are generally not recommended by attorneys who practice in the area of elder law and special needs planning.

For assistance contact attorneys Steven J. Schwartz, Timothy P. Mulhern, Ann I. Weber, Carol Cioe Klyman, Michele J. Feinstein, Gary S. Fentin or David K. Webber.