A Durable Power of Attorney is used to give legal rights and powers from one person to another.
A common scenario is that one person, the “Principal” appoints another person, the “Agent” under a general power of attorney.
In effect, the agent stands in the shoes of the principal and can act for the principal on financial and business matters.
The agent can do whatever the principal may do – withdraw funds from bank accounts, trade stock, pay bills, cash checks – with any exceptions being listed in the power of attorney.
This doesn’t mean the agent can take the money and run. The agent must use the principal’s finances as the principal would, for his or her benefit.
Good estate planning will have a Durable Power of Attorney for property as part of the plan. If you were incapacitated in a car accident, had a debilitating physical or mental disease, your agent could handle your finances and pay your bills without having to go to court to seek a Conservatorship.
If you would like to discuss any of these issues, please call Attorney Meg Goblet at 719-686-9700 for a free, confidential appointment.