Peace of Mind: Understanding the Difference Between Power of Attorney and Durable Power of Attorney

With so many legal terms, you may have wondered what is the difference between Power of Attorney and Durable Power of Attorney.

The differences are subtle but significant, and this article will explain them to you in clear, concise terms.

It’s not unusual for confusion to arise regarding the distinctions between a Power of Attorney (POA) and a Durable Power of Attorney. To unravel the complexities, here is a clear explanation of each and when to opt for a Durable Power of Attorney.

Power of Attorney (POA): The Foundation

Let's start by breaking down the fundamental concept of Power of Attorney:

Definition of Power of Attorney:

Power of Attorney is a legal document that grants an appointed individual (known as the attorney-in-fact or agent) the authority to make decisions on behalf of another person (the principal). However, there's a crucial aspect to consider: The Limitations of Standard Power of Attorney.

A standard or general Power of Attorney is effective only while the principal is mentally competent. If the principal becomes incapacitated due to illness or injury, the authority granted by a standard POA becomes void.

With that in mind, a regular Power of Attorney is helpless to protect you and your loved ones from unexpected tragedy. Should you or someone you care for fall into a coma or pass away, the regular POA would do little to help you.

This is why my family and I worked together to secure a Durable Power of Attorney for our daughter, Kayla, when she was in the hospital.

Back in 2021, my 25-year-old daughter was fighting a losing battle with Covid-19. Before she was put into a medically induced coma, she signed a Durable Power of Attorney and Advance Healthcare Directive, naming her mother and me as agents, or “attorneys-in-fact.”

This choice was crucial because it allowed us to make important choices regarding her care while she was incapacitated.

The Durable Details

A Durable Power of Attorney (DPOA) is what you need to protect against unexpected tragedy or disaster.

A DPOA contains a durability clause, making it resilient even if the principal becomes mentally incompetent. This durability ensures that the attorney-in-fact's authority persists during the principal's incapacity.

This is crucial because it provides several benefits:

• Preservation of the principal’s wishes

• Seamless management of affairs

• Peace of mind

The best part of a DPOA is that it costs relatively little to create and sign into effect!

In fact, we can help you get your Durable Power of Attorney in place at no cost whatsoever. Just click the link below to schedule a no-risk call:

Key Differences in Scope and Duration

As you may have guessed, the standard Power of Attorney and Durable Power of Attorney feature significant differences in scope and duration, or how much they cover and how long they last.

Scope of Authority:

• Power of Attorney: Effective while the principal is mentally competent, covering general or specific decisions as outlined in the document.

• Durable Power of Attorney: Extends authority beyond the principal's incapacity, ensuring the attorney-in-fact can act even during periods of mental incompetence.

The scope of each Power of Attorney is based on its purpose.

A nondurable power of attorney is meant to give someone else decision-making power on your behalf that you could technically make at the same time.

More on why you’d do that in a minute.

The durable power of attorney is meant to give someone else decision-making power on your behalf that you can NOT make at the time.

In other words, it endures past your incapacitation and allows the agent or attorney-in-fact to make all manner of decisions for you since you cannot make them yourself.

Duration of Effectiveness:

• Power of Attorney: Becomes void upon the principal's incapacity.

• Durable Power of Attorney: Remains effective through the principal's incapacity, ensuring continuous decision-making capability.

This is why it’s imperative that you create a Durable Power of Attorney to protect yourself and your loved ones in the case of a medical emergency.

Without a Durable Power of Attorney, your spouse and/or children will have to answer impossible questions without knowing any or all of your answers:

• Should we sign a DNR (Do Not Resuscitate Order)

• How long should you lie in a coma before the removal of life support?

• Who can visit you?

• Are you open to experimental treatments or medications?

• When, and if, should hospice services be implemented?

These are painful questions in the best of circumstances and tortuous ones when the answers are uncertain.

Don’t wait until it’s too late to make your wishes know.

Book a 15-minute call to create your Durable Power of Attorney today:

Choosing Between POA and DPOA: When and Why?

You may be wondering, “Why do people get regular Power of Attorney?”

The answer is simple: To make decisions on your behalf that you don’t have time or knowledge to make.

If you’ve ever worked with an investment advisor or stock broker, you’ve probably signed a nondurable Power of Attorney granting them the right to make trades (purchases and sales) on your behalf.

However, should you suddenly be incapacitated, that right would end, as you would no longer be consciously able to end the arrangement, should you wish to.

As a general rule, here is the best time and reason for each type of POA:

Nondurable Power of Attorney —> Entering a Trusted, Legally-Binding Business Relationship

Choose this kind of POA when entering into legally binding, clearly defined business relationships.

If and when you become incapacitated, the POA will terminate and no longer apply.

Durable Power of Attorney —> Entrusting a Loved One With Enduring Decision-Making Power

Choose this kind of POA to provide your loved ones with legal authority and moral clarity about every aspect of your wishes.

Empower Your Loved Ones to Make Guilt-Free Decisions

With a Durable Power of Attorney, you never have to worry if tragedy will make an already bad situation worse.

We can’t prevent all disasters.

But we can soften the blow and free our loved ones from the guilt of the unknown.

Don’t wait until it’s too late.

Don’t wait until your family is gathered around a hospital bed, debating and arguing about what you would want.

Tell them.

Make it clear.

It’s the best gift you can give, and it’s in your power to give it right now.

Book a call with me, Mynor Ramos, and I will guide you through the process at no charge whatsoever.