What is the Difference Between Durable and General Power of Attorney?
Understanding the difference between a durable power of attorney and a general power of attorney is crucial for anyone who is considering granting someone else the authority to make decisions on their behalf. Both types of power of attorney are legal documents that allow an individual, known as the principal, to appoint another person, known as the agent or attorney-in-fact, to act on their behalf. However, there are significant differences between the two, particularly in terms of their effectiveness and scope.
A general power of attorney is a broad grant of authority that allows the agent to make decisions on the principal’s behalf. This type of power of attorney is typically used for routine financial transactions, such as signing checks, paying bills, and managing bank accounts. However, a general power of attorney is only effective as long as the principal is mentally competent. Once the principal becomes incapacitated, the general power of attorney becomes void, and the agent no longer has the authority to make decisions on the principal’s behalf.
On the other hand, a durable power of attorney is a more comprehensive document that includes a clause stating that the power of attorney remains in effect even if the principal becomes incapacitated. This means that the agent can continue to make decisions on the principal’s behalf, even if the principal is unable to make decisions for themselves. A durable power of attorney is often used for more complex financial and legal matters, such as managing real estate transactions, handling estate planning, and making medical decisions.
One of the key differences between a durable power of attorney and a general power of attorney is the duration of their effectiveness. A general power of attorney is typically used for a specific purpose and expires when that purpose is completed or when the principal revokes the document. In contrast, a durable power of attorney remains in effect indefinitely, unless the principal revokes it or dies.
Another important distinction is the scope of authority granted to the agent. A general power of attorney is limited to the specific powers granted by the principal, while a durable power of attorney may grant broader authority. This broader authority is particularly important in the event of the principal’s incapacity, as it allows the agent to make decisions that are in the principal’s best interest, even if the principal is unable to communicate those interests.
In conclusion, the main difference between a durable power of attorney and a general power of attorney lies in their effectiveness and scope. While a general power of attorney is limited to specific, routine financial transactions and expires upon the principal’s incapacity, a durable power of attorney remains in effect indefinitely and can grant broader authority to the agent. It is essential for individuals to carefully consider their needs and consult with an attorney when choosing between these two types of power of attorney.
