Creating a Durable Power of Attorney

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Creating a durable power of attorney is a vital part of ensuring that individuals’ wishes are followed and that their assets are managed in accordance with their wishes, when they are unable to do so for themselves due to disability or mental impairment. It is an incredibly important document which gives the appointed attorney-in-fact the authority to make decisions on behalf of the principal; such as signing legal documents, managing finances and real estate and making healthcare decisions.

While opinions may vary on the topic, it is essential to ensure that a durable power of attorney is properly executed in order for it to be valid. To this end, The Genie AI team offers free durable power of attorney templates, along with step-by-step guidance which covers topics ranging from understanding the implications of creating this document through to how best to execute it. Accessing our template library today can help provide individuals and their families with peace of mind knowing that their wishes will be followed if something happens unexpectedly.

In short, creating a durable power of attorney should not be taken lightly as it is an incredibly powerful document that holds far reaching implications. And while accessing our template library does not require you needing an account with us at any stage – we simply want to provide you with all the support possible – taking advice from a qualified legal professional can also greatly benefit those looking for further information about this subject matter.

Read on below for more information about creating a durable power of attorney and how using our template library can help you get started today.

Definitions (feel free to skip)

Fiduciary Duty: A legal relationship of trust between two parties, in which one party is obligated to act in the best interest of the other.
Notary Public: A person authorized by the state to witness and certify documents.
Incapacitated: Unable to make decisions or take action due to physical or mental impairment.
Competent: Having the legal capacity to do something.
Contest: To challenge the validity of something.
Guardian: A person appointed by the court to manage the affairs of another person.
Revoke: To cancel or withdraw a document or permission.
Modify: To change or alter something.
Terminate: To stop or end something.

Contents

• Explaining the concept of durable power of attorney and its purpose
• Explaining the different types of durable power of attorney
• General durable power of attorney
• Limited durable power of attorney
• Springing durable power of attorney
• Outlining the legal requirements to set up a durable power of attorney
• Explaining the duties and responsibilities of the attorney-in-fact
• Explaining the legal implications of giving someone durable power of attorney
• Outlining the process for setting up a durable power of attorney
• Identifying the attorney-in-fact
• Drafting the durable power of attorney document
• Signing the document in the presence of a notary public
• Explaining the role of the court in durable power of attorney
• Explaining how to revoke a durable power of attorney
• Explaining how to modify a durable power of attorney
• Explaining how to terminate a durable power of attorney
• Explaining how to contest a durable power of attorney
• Explaining how to handle disputes involving a durable power of attorney
• Providing resources for additional information on durable power of attorney

Get started

Explaining the concept of durable power of attorney and its purpose

• Understand what a durable power of attorney is: a document that allows you to designate someone else to make decisions for you and act on your behalf, in the event that you become incapacitated or unable to make decisions for yourself.
• Learn the purpose of a durable power of attorney: to ensure that someone you trust is able to take care of your affairs in the event that you are incapacitated, or if you are unable to make decisions or act on your own.
• Know that a durable power of attorney is a legally binding document and should be handled with care.

When you can check this step off your list:

• When you have a basic understanding of what a durable power of attorney is and its purpose.
• When you are aware that a durable power of attorney is a legally binding document and should be handled with care.

Explaining the different types of durable power of attorney

• Understand the difference between a general durable power of attorney and a limited durable power of attorney
• Learn how to distinguish between a durable power of attorney and a regular power of attorney
• Be aware of the different types of decisions that can be delegated to a power of attorney
• Understand the roles and responsibilities of the principal and agent in a durable power of attorney
• Determine when a durable power of attorney should be used and when it should be avoided

Once you have a solid understanding of the different types of durable power of attorney and how they affect decision-making, you can check this step off your list and move on to the next step.

General durable power of attorney

• Understand the importance of creating a durable power of attorney (POA)
• Make sure to read the document thoroughly and understand what it entails
• Find a lawyer or legal representative to help you draft the POA
• Make sure you have the name and contact details of the person you are granting the POA to
• Fill in the required information on the document and sign it in the presence of a witness
• Make sure to get a copy of the document for both you and the person you are granting the POA to
• Check off this step and move on to the next step: Limited durable power of attorney.

Limited durable power of attorney

• Choose an attorney-in-fact (also known as an agent) to manage your financial affairs
• Draft a durable power of attorney document that outlines the agent’s responsibilities, including the scope of their authority and any restrictions you would like to place on their power
• Have the document signed in front of a notary public, witnesses, and your agent
• File the signed document with your local county recorder or clerk’s office
• Make copies of the document and give them to your agent and any other relevant parties

Springing durable power of attorney

• Understand the legal requirements for setting up a springing durable power of attorney in your state
• Draft and sign the durable power of attorney form with your attorney
• Identify a date or event that will trigger the power of attorney to come into effect
• Have the durable power of attorney form notarized
• Make sure to keep at least one copy of the form in a secure place

You will know you have completed this step when you have drafted and signed the durable power of attorney form and have had it notarized.

Outlining the legal requirements to set up a durable power of attorney

• Research the requirements for creating a durable power of attorney in your state - check with the local court or state bar association for availability of forms and other requirements
• Ensure that the person creating the durable power of attorney is of legal age and mental capacity
• Understand the differences between a general power of attorney and a durable power of attorney
• Make sure that the document is properly witnessed, signed and dated
• When all of the above requirements have been met, the durable power of attorney has been legally created and is ready for use.

Explaining the duties and responsibilities of the attorney-in-fact

• Understand what an attorney-in-fact is: They are authorized to make decisions on behalf of the principal, but not to make decisions about their own financial or health interests.
• Understand what powers and duties the attorney-in-fact has: Depending on the type of power of attorney and the state in which it is created, the attorney-in-fact may have the power to make decisions related to real estate, banking, investments, taxes, medical decisions, and other legal matters.
• Understand the limits of the attorney-in-fact’s powers: The attorney-in-fact is not allowed to do anything that violates the law or the terms of the durable power of attorney.
• Understand the duration of the attorney-in-fact’s powers: The attorney-in-fact’s powers may be as limited as a single transaction or may last until the principal dies or revokes the power of attorney.

You’ll know when you can check this off your list and move on to the next step when you have a clear understanding of the duties and responsibilities of the attorney-in-fact.

Explaining the legal implications of giving someone durable power of attorney

• Explain the differences between a power of attorney and a durable power of attorney.
• Explain the authority that the attorney-in-fact is granted with a durable power of attorney.
• Explain the limitations of a durable power of attorney.
• Explain the legal consequences of the attorney-in-fact abusing their power of attorney.
• Explain the legal process that needs to be followed in order to revoke a durable power of attorney.

When you’re done explaining the legal implications of giving someone durable power of attorney, you can check this step off your list and move on to outlining the process for setting up a durable power of attorney.

Outlining the process for setting up a durable power of attorney

• Understand your state’s requirements for a durable power of attorney document
• Choose an attorney-in-fact to serve in your place
• Compile a list of the duties and responsibilities you’d like the attorney-in-fact to take on
• Ensure that the document is properly signed before any action is taken
• Store the original document in a safe place

Once you have completed the steps listed above, you can move on to the next step of identifying the attorney-in-fact.

Identifying the attorney-in-fact

• Consult with the person creating the power of attorney to decide the best person to appoint as attorney-in-fact
• Discuss the responsibility and authority of the attorney-in-fact with the person creating the power of attorney
• Have the person creating the power of attorney confirm in writing that they want to appoint the attorney-in-fact
• Check with the attorney-in-fact to confirm they are willing and able to serve

Once the person creating the power of attorney has identified the attorney-in-fact and they have both confirmed in writing that the attorney-in-fact is willing to serve, you can check this step off your list and move on to the next step.

Drafting the durable power of attorney document

• Research the laws in your state regarding durable power of attorney documents
• Consult an attorney if you need help understanding your state’s laws
• Draft the document with the help of an attorney or with a software program
• Include the names and addresses of the principal and attorney-in-fact
• Include a clear statement of the principal’s intent to appoint an attorney-in-fact
• Make sure all the required language is included and all legal requirements are met
• Have the document signed by the principal in the presence of a witness

When you can check this off your list and move on to the next step:

• When the document is written and signed by both the principal and the witness, it is ready to be signed in the presence of a notary public.

Signing the document in the presence of a notary public

• Gather the parties to the document – the principal (the person creating the document) and the attorney-in-fact (the person who will be authorized to act on behalf of the principal) – and a notary public.
• Present a valid form of identification to the notary public.
• Sign the document in the presence of the notary public.
• The notary public should then sign and stamp the document.
• Once the document is signed and notarized, it is legally valid and enforceable.

Explaining the role of the court in durable power of attorney

• Learn the role of the court in the durable power of attorney process
• Understand that the court can be called upon to interpret the document if needed
• Be aware that the court can also be called upon to appoint a guardian if needed
• Know that the court can revoke the document if it finds that the person is no longer competent
• Realize the court can also appoint someone to manage the document if the person is no longer able to do so
• Once you understand the role of the court, you can check this step off your list and move on to the next step.

Explaining how to revoke a durable power of attorney

• Notify the Agent/Attorney in Fact that you are revoking their appointment
• Depending on the state you live in, you may have to file paperwork with the court to make your revocation official
• Request that all financial institutions in which the power of attorney was used to cease recognizing the power of attorney
• Prepare a document revoking the power of attorney and have it notarized
• Make copies of the document to provide to any financial institutions that previously accepted the power of attorney

You will know you can check this step off your list and move on to the next step when you have successfully revoked the power of attorney, filed any necessary paperwork with the court, and provided documentation to any financial institutions that previously accepted the power of attorney.

Explaining how to modify a durable power of attorney

• Create a new durable power of attorney document, or modify the existing one.
• Include language that specifies the changes that are being made.
• Ensure that the document is signed and dated.
• Have the document witnessed or notarized.
• Make sure that all copies of the previous version of the document are destroyed.
• File the modified durable power of attorney with the relevant government offices.

You’ll know when you can check this off your list and move on to the next step when you have successfully created or modified the durable power of attorney document, witnessed or notarized it, and filed it with the relevant government offices.

Explaining how to terminate a durable power of attorney

• Obtain a revocation form from your state’s court system or an attorney
• Fill out the revocation form with the appropriate information, including the name and address of the attorney-in-fact and the name and address of the principal
• Sign and date the revocation form in the presence of a notary public
• Deliver the revocation form to the attorney-in-fact or the principal
• File the revocation form with the court or other relevant government agency

Once you have completed the above steps, you have successfully terminated the durable power of attorney.

Explaining how to contest a durable power of attorney

• Understand the reasons why you would want to contest a durable power of attorney:
• The principal was not competent when signing the document
• The principal was unduly influenced to sign the document
• The document was not properly witnessed or notarized
• Obtain copies of the durable power of attorney and any other related documents
• File a petition in the court where the principal resides
• Prove your case with evidence and witnesses
• Present your case to the judge and follow the court’s instructions
• You will know you have completed this step when the court has ruled on your petition.

Explaining how to handle disputes involving a durable power of attorney

• Research the state laws pertaining to durable power of attorney disputes.
• Contact the executor of the durable power of attorney and discuss the dispute.
• Determine the legal basis for the dispute and if the dispute is valid.
• Seek the advice of an attorney to understand your rights and any legal recourse available to you.
• Consider filing a formal complaint with the court, if appropriate.
• If the dispute is not resolved, consider pursuing mediation or arbitration.

Once you have researched the state laws pertaining to durable power of attorney disputes and discussed the dispute with the executor, you can check off this step and move on to the next step.

Providing resources for additional information on durable power of attorney

• Research online for websites or organizations that provide reliable information on durable power of attorney.
• Talk to a legal expert or lawyer for more information or advice.
• Research local resources or organizations that can help you understand durable power of attorney.

You will know you can check this off your list and move on to the next step when you have identified at least three reliable resources and understand the basics of durable power of attorney.

FAQ:

Q: What are some of the key differences between UK and EU company shares?

Asked by Abigail on April 15th 2022.
A: The main difference between UK and EU company shares is that the UK offers a greater range of investment opportunities than the EU. For example, in the UK you can invest in stocks, bonds and other financial instruments, whereas in the EU you are limited to stocks. Additionally, there are different regulations and taxes that apply to UK and EU shares, which can affect the return of your investments. It is important to consider these factors when making an investment decision.

Q: What is the typical shareholding structure for a UK company?

Asked by Jessica on May 13th 2022.
A: The typical shareholding structure for a UK company consists of shareholders who hold equity in the company, directors who manage the operations of the company, and employees who contribute to running the business. The shareholders are typically divided into two categories – private shareholders and institutional shareholders. Private shareholders are individuals or entities who have made an investment in the company, while institutional shareholders may include pension funds, banks or other financial institutions that have made investments in the company. It is important to understand the different types of shareholders as they will have different rights and responsibilities when it comes to how the company is managed and how profits are distributed.

Q: What types of companies can issue shares in the UK?

Asked by Joshua on June 29th 2022.
A: Any type of limited liability company can issue shares in the UK, including public limited companies (PLCs), private limited companies (Ltds), unlimited companies and foreign companies with a registered branch in the UK. Companies need to meet certain requirements, such as having at least two directors and two shareholders, in order to issue shares on a public stock exchange. Companies also need to be registered with Companies House before they can issue shares.

Q: What is meant by ‘dilution’ of shares?

Asked by Sarah on August 16th 2022.
A: Dilution of shares refers to a decrease in the ownership stake of existing shareholders due to new equity being added to a company’s capital structure. This is usually done when a company issues new stock or takes on additional debt, which results in existing shareholders owning a smaller percentage of the total number of outstanding shares. Dilution can also occur if existing investors sell some of their shares or if a large shareholder makes a strategic sale of their stake in order to raise capital for other investments.

Q: What are ‘preference’ shares?

Asked by Matthew on August 31st 2022.
A: Preference shares are a type of stock that gives investors preferential treatment when it comes to dividends or other payments from a company. Preference shares typically give holders priority over common shareholders when it comes to receiving dividends or other payments from a company’s profits. In some cases, preference shareholders may also be entitled to receive repayment ahead of common shareholders if a company enters insolvency proceedings.

Q: What is meant by ‘liquidity risk’?

Asked by Ashley on October 5th 2022.
A: Liquidity risk refers to the risk that an investor may not be able to sell their investment quickly enough to realise its value at any given time. This can occur when there is not enough demand for the investment or when there are not enough buyers willing to purchase it at its current price level. Liquidity risk can be particularly acute with illiquid assets such as real estate or venture capital investments where there may be relatively few buyers available at any given time.

Q: What forms do I need to fill out before purchasing UK company shares?

Asked by Michael on November 19th 2022.
A: Before purchasing UK company shares you will need to fill out an application form provided by your broker or bank which will provide details about your identity, financial situation and investment objectives. You will also need to sign an agreement with your broker outlining their services and fees as well as any legal documents relating to your purchase such as an allotment letter or subscription agreement. Depending on your broker’s requirements you may also need to provide additional documents such as proof of address or other identification documents such as a passport or driving licence.

Q: Are there any tax implications I should consider before investing in UK company shares?

Asked by Emma on December 25th 2022.
A: Yes, there are several tax implications that you should consider before investing in UK company shares including capital gains tax (CGT), income tax and stamp duty land tax (SDLT). Capital gains tax applies when you dispose of assets such as stocks or bonds for more than you originally paid for them while income tax applies when you receive dividends from your investments. Stamp duty land tax (SDLT) applies when you transfer ownership of property such as land or buildings so it is important that you understand how these taxes could affect your investments before making any decisions about investing in UK company shares.

Example dispute

Suit Raised by a Plaintiff Referencing a Durable Power of Attorney

• The plaintiff is usually an individual or a business who has been affected by the actions of a person or entity with a legal power of attorney.
• The lawsuit would likely reference relevant civil law, regulations, and durable power of attorney documents.
• The suit could be raised for a variety of reasons, such as breach of contract, negligence, or intentional infliction of emotional distress.
• The court may determine if the power of attorney was validly executed according to state law, and if the power of attorney holder had the authority to act on behalf of the principal.
• Settlement can be reached through negotiation or mediation between the parties, or damages may be awarded to the plaintiff if the case is decided in their favor.
• If damages are awarded, they can include compensatory damages (to cover monetary losses) and/or punitive damages (to punish the defendant for bad actions).

Templates available (free to use)

Durable Power Of Attorney For Health Care Dc
Durable Power Of Attorney For Health Care Decisions Kansas
Durable Power Of Attorney For Health Care Decisions Nevada
Durable Power Of Attorney Massachusetts
Durable Power Of Attorney Michigan
Durable Power Of Attorney Vermont
General Durable Power Of Attorney Mississippi
Statutory Durable Power Of Attorney Texas

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