Understanding the Durable Power of Attorney

June 18, 2025

What is it and do I need one?

Life is unpredictable, and planning ahead ensures your wishes are honored even when you're unable to make decisions for yourself. One crucial step in this planning is creating a Durable Power of Attorney (POA). Unlike an ordinary POA, which ends if you become mentally incapacitated, a Durable Power of Attorney remains in force even if you’re unable to make decisions due to illness or injury, and it ends only upon your passing or if you revoke it.

By setting up a durable POA, you can avoid confusion and emotional strain for your family, ensuring someone you trust is empowered to act on your behalf. Here’s an educational yet compassionate breakdown of what you need to know, including examples and actionable steps to guide you.


Two Types of Durable Power of Attorney


Durable Power of Attorney for Finances (General Durable POA)


This document authorizes someone (your agent or attorney-in-fact) to handle your financial matters. This could include paying bills, managing investments, handling taxes, or even selling property.

  1. Example: Imagine you suffer a stroke and are no longer able to manage your bank accounts or pay monthly bills. With a financial durable POA, your trusted agent can seamlessly step in to manage these responsibilities, preventing late fees or financial chaos.
  2. When it Takes Effect: You can specify whether this POA becomes effective immediately or only upon your incapacitation. For example, if you trust your agent completely, you might allow them to act immediately.


Durable Power of Attorney for Healthcare (Healthcare POA)


This document designates someone to make medical decisions for you when you’re unable to do so yourself. These decisions could include approving surgeries, choosing treatments, or deciding on end-of-life care.

  • Example: You’re in a car accident and rendered unconscious. Your healthcare agent can speak to doctors on your behalf, ensuring your medical care aligns with your values and preferences.
  • Why a Different Person? It’s often wise to select separate agents for finances and healthcare, as these roles require distinct skill sets. For instance, someone who is financially savvy may not have the emotional capacity to make compassionate medical decisions, and vice versa.


Living Will: A Companion to Your Healthcare POA


A Living Will is an advance directive that outlines your preferences for medical care at the end of life. It addresses treatments like life support, resuscitation, or feeding tubes if you’re terminally ill or permanently unconscious.

  • Example: If you don’t want to be kept on life support indefinitely with no hope of recovery, your living will ensures doctors and loved ones understand and honor your choice.
  • When it’s Used: Only when you’re unable to communicate your wishes.


Step-by-Step Guide to Setting Up a Durable Power of Attorney


  1. Reflect on Your Needs
  • Think about who you trust with your finances and healthcare decisions.
  • Consider their ability to handle stress, make rational decisions, and respect your wishes.

2. Consult an Attorney

  • While forms are available online, working with an attorney ensures your documents meet your state’s legal requirements and reflect your intentions.

3. Draft the Documents

  • Create separate documents for financial and healthcare POAs.
  • Clearly outline the powers you’re granting and any limitations.

4. Include a Living Will

  • Work with your attorney to draft a living will, ensuring your medical preferences are documented.

5. Discuss with Your Agents

  • Talk to the people you’ve chosen as your agents. Ensure they’re comfortable with their responsibilities and understand your wishes.

5. Sign and Notarize

  • Most states require your durable POA documents to be signed in the presence of a notary or witnesses.

7. Distribute Copies

  • Give copies of your documents to your agents, attorney, and healthcare providers. Keep the originals in a safe, accessible place.

8. Review Regularly

  • Revisit your POAs and living will periodically, especially after major life events, to ensure they still reflect your wishes.



Planning for the unexpected is a gift to yourself and your loved ones. It eliminates uncertainty during challenging times, empowers those you trust, and ensures your values are honored. By taking the time to create a durable power of attorney and living will, you’re taking control of your future with compassion and clarity.


If you haven’t yet started this process, consider reaching out to an attorney today. Your peace of mind—and that of your loved ones—is worth it.

If you need recommendations for vetted, local professionals- give us a call.



Author: Kinga Wulczynska-Lauer


Disclaimer:

Retirement In Reverse is a mortgage company dedicated to serving older adults, financial planners, and wealth managers with a strong focus on education and informed decision-making. While we strive to provide helpful information on a variety of topics, we are not experts in all areas. That’s why we collaborate with a trusted network of professionals—including attorneys, tax advisors, and financial planners—to help connect you with the right expert based on your individual needs. The information provided in this article is for educational and illustrative purposes only. Before making any financial, legal, or lifestyle changes, we strongly recommend consulting with a qualified professional who can review your personal situation. If you are considering Reverse Mortgage, call Ted Lange at 760-753-1568 to learn more.

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