A Durable Power of Attorney is used to appoint a person (called an "attorney-in-fact" or "agent") who can make most medical and financial decisions on behalf of the person signing the document (the "principal"). In cases when loved ones become mentally or physically incapacitated, they allow family or friends to step in and help without going to court to get a guardianship.

  

Some durable powers of attorney grant access to bank accounts, the authority to sign deeds, and other powers that can be misused to financially exploit a vulnerable person. To minimize the risk that a durable power of attorney is abused, keep the following in mind:

• Make sure the person named as the attorney-in-fact (or agent) is completely trustworthy. Does he or she have financial problems? A history of drug or alcohol abuse? A gambling addiction? What about the person's spouse or significant other?
• Consider requiring that more than one person sign off on significant decisions, such as executing a deed or placing you in a nursing home.
• The attorney-in-fact may be required to provide bank statements or other financial reports to someone else. Knowing that another person will be looking at the finances can be an effective way to deter wrongdoing.

While there are many generic forms available, it is better to tailor a durable power of attorney to each person's specific situation. A knowledgeable attorney or other advisor can make sure the person signing the form understands the significance of the document, feels confident in his or her choices, and has taken steps to prevent abuse.

 

See the section on Durable Powers of Attorney on the Senior Law Resource Center's website for more information.