Why Do I Need a Durable Power of Attorney for Property?

 Posted on November 14, 2024 in Estate Planning

A durable power of attorney for property is a legal instrument used in estate planning that allows a person (the principal) to authorize someone else (the agent) to make decisions or perform actions related to the principal’s assets and finances. The fact that it is durable means it remains in effect even if the principal becomes incapacitated and can no longer make decisions.

Although many people think incapacitation is the purpose of a durable power of attorney for property, it is useful in several other scenarios. Whatever the reason for your durable power of attorney (DPOA), remember to have it drafted by a qualified Illinois estate planning lawyer.

When Is a Durable Power of Attorney for Property Useful?

While decision-making power in the event of incapacitation is one of the purposes of a durable power of attorney, principals find DPOAs useful in many other scenarios. For example:

• Travel or absence: A DPOA can allow an agent to manage the financial affairs of a principal who is out of the country. While the principal is abroad, the agent can sign papers, pay taxes, open accounts, and perform other tasks on his or her behalf.

• Real estate transactions: If a principal owns many real estate properties — which is common among real estate investors — managing them can be cumbersome. A DPOA can free a principal from these duties by authorizing an agent to perform them.

• Overseas investments: A principal can run into difficulties trying to conduct financial business overseas. His or her physical presence may be required to open certain bank accounts or purchase property. A DPOA can allow an agent to travel in the principal’s stead and execute those transactions.

• Elderly parents: Sometimes, elderly adults prefer to step back from managing their finances even though they are not incapacitated. In such cases, a DPOA can allow adult children to manage their parents’ assets.

How Do I Choose the Right Agent for a Durable Power of Attorney for Property?

Selecting the right agent is one of the most important steps when creating a durable power of attorney for property. Choose a person who has a reputation for honesty and whose loyalty you trust so that you do not worry about him or her mismanaging your assets. The agent should also be reliable so that tasks are carried out promptly and effectively. Ideally, the agent you choose will have a fair understanding of finances that helps him or her fulfill your wishes.

Contact a Gurnee, IL Estate Planning Attorney

A durable power of attorney for property can be a great way to manage your finances, execute tasks, and ensure continuity while stepping back from hands-on management. Contact Newland & Newland, LLP and let us draft a durable power of attorney to match your specifications and protect your interests. Schedule a free consultation with a Waukegan, IL power of attorney lawyer by calling 847-549-0000 now.