Durable Power of Attorney for Financial Decisions

What is a Durable Power of Attorney for Financial decisions?

A Durable Power of Attorney for Financial decisions is a document executed by a competent person (the "Principal") giving another person (the "Agent" or the “Attorney-in-Fact”) the authority to make Financial decisions for you.

Why have a Durable Power of Attorney for Financial decisions?

In case you ever become incapacitated, it is important that someone has the legal authority to act on your behalf for financial matters. And, having a Durable Power of Attorney for Financial decisions may avoid a guardianship that would otherwise be imposed. The court may not establish a guardianship if less restrictive alternatives are in place to protect your financial interests.

Who should I appoint as my Attorney-in-Fact?

Since your Attorney-in-Fact has the authority to handle your financial matters for you in the event you are unable to make such decisions yourself, it should be a family member or friend with good financial skills that you trust implicitly. Before executing a Durable Power of Attorney for Financial decisions, you should talk to the person you want to name as your Attorney-in-Fact to ensure that he or she is willing and able to serve.

When does a Durable Power of Attorney for Financial decisions take effect?

A Durable Power of Attorney for Financial decisions can be effective immediately upon signature or only upon your subsequent incapacity. Regardless of when a Durable Power of Attorney for Financial decisions takes effect, granting authority to your Attorney-in-Fact does not take away your authority regarding financial matters as long as you are able to make such decisions for yourself.                                                                                    

Who should have a copy of my Durable Power of Attorney for Financial decisions?

Your Attorney-in-Fact Agent should have the original document. Financial institutions will often insist upon production of the original document. You should keep a copy.

Does a Durable Power of Attorney become “Stale?”

Financial Institutions are sometimes reluctant to accept a “stale” Durable Power of Attorney.  What is considered “stale” or too old depends upon the particular financial institution: some even say 6 months is too old! This interpretation is clearly not correct. Washington statutes provide a mechanism to require the party to whom a Durable Power of Attorney is presented to recognize and honor the document. Nonetheless, as life circumstances change, it is a good idea to make sure your Durable Power of Attorney, and other Estate Planning documents are current.

How can I get a Durable Power of Attorney for Financial decisions?

Contact an attorney who is skilled and experienced in this area.