Everyone goes through life differently. Some people rarely deal with unexpected events, while others experience moments that change their lives significantly. Having an alternate plan is good, but having a legal backup is better.
Most people in Ohio know that a regular Power of Attorney can be useful in major decision-making when they are unable to act. But many are not aware that they can secure a Durable Power of Attorney (DPOA) instead, which is more powerful. This piece of paper allows you to choose someone you trust to manage important matters if you become unable to make decisions yourself, like if you lose mental capacity.
Types of DPOA
A DPOA can cover different areas of your life, depending on what authority you grant. The two most common types are:
- Financial DPOA: This allows your chosen agent to manage financial matters, including paying bills, handling real estate transactions, managing investments or filing taxes.
- Health Care DPOA: Also called a medical or health care proxy, this document lets you pick a person you trust to make medical decisions for you when you are incapacitated. Your agent’s authority is paramount and will override the wishes of your immediate family by replacing the state’s default legal hierarchy of decision-makers.
Together, these two forms of DPOA cover both your financial stability and your personal well-being, ensuring that your agent follows your instructions no matter what.
What is fiduciary duty?
Every DPOA agent has a fiduciary duty, meaning they must always act honestly and in your best interest. They need to follow everything stipulated in the DPOA and keep records as part of staying transparent.
What a DPOA cannot do
A DPOA is not the end-all, be-all of POAs. DPOA agents still cannot do certain functions like change your will, vote on your behalf or make decisions after your death. Upon death, the executor takes over and the agent loses authority. Remember that a DPOA automatically ends upon the death of the principal.
Secure peace of mind today
A DPOA is a powerful way to protect your future even when you cannot speak for yourself. Start the process by reaching out to an estate planning attorney who can help you draft a DPOA that protects your best interests.