Why You Need a Durable Power of Attorney (Before It’s Too Late)
If you fall into a coma tomorrow, who pays your mortgage? Without a “Durable” Power of Attorney, even your spouse cannot access your individual bank accounts. Here is why this document is more important than a Will.
The Cost of Doing Nothing
Many people think, “I don’t need this, I’m young.” But accidents happen. Compare the two paths below.
| Factor | With Durable POA | Without POA (Guardianship) |
|---|---|---|
| Control | You choose Agent | Judge chooses Guardian |
| Time to Act | Immediate | 3 – 6 Months |
| Cost | $100 – $300 | $5,000 – $10,000 |
| Privacy | Private Document | Public Court Record |
| Scenario | Result |
|---|---|
| Car Accident | Need Medical POA |
| Dementia | Need Financial POA |
You Need Both of These
A single document usually doesn’t cover everything. You typically need two separate forms.
1. Financial Durable POA
This allows your “Agent” to pay your bills, file your taxes, manage your investments, and sell your house if necessary.
Critical Keyword: It must be “Durable.” This means it stays valid even if you become incapacitated. A non-durable POA expires the moment you pass out—making it useless in an emergency.
2. Medical POA (Healthcare Proxy)
This allows your “Agent” to make medical decisions: surgery options, medication, and life support.
Note: This is often combined with a “Living Will” (Advance Directive), which states your wishes regarding life support.
When Does It Start?
You have a choice on when the power kicks in.
- Immediate POA: Your Agent can manage your money right now, even while you are healthy. (Recommended for spouses).
- Springing POA: Only becomes active after two doctors certify that you are incapacitated. (Good for privacy, but can cause delays in emergencies).