A Durable Power of Attorney is a legal document that grants an individual (known as the "agent" or "attorney-in-fact") the authority to make decisions on behalf of another person (known as the "principal") in the event that the principal becomes incapacitated or unable to make decisions for themselves. Unlike a standard power of attorney, which becomes invalid if the principal loses mental capacity, a durable power of attorney remains effective even in such situations, hence the term "durable."
The Durable Power of Attorney can cover a wide range of decisions, including financial matters, healthcare decisions, and property management. It is essential for individuals to select a trusted person as their agent since that individual will have significant control over the principal’s affairs. The agent’s powers can be broad or limited, depending on the principal’s wishes as specified in the document.
In Texas, a Durable Power of Attorney must be signed by the principal and can be either notarized or witnessed by two individuals who are not named as agents. This type of document is particularly crucial for estate planning, as it ensures that someone the principal trusts can manage their finances and healthcare if they become unable to do so themselves. For example, if an elderly person develops dementia, their durable power of attorney allows their agent to handle financial transactions, pay bills, and make healthcare decisions without the need for court intervention.
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