Do you know the difference between a durable and non durable attorney? This article talks about all the ABCs of the Durable and Non Durable Power of Attorney.
Life is full of situations that involve signing documents, completing financial tasks, and reviewing agreements. Nowadays, everyone constantly stresses the importance of having a well-rounded estate (belongings) plan. Before drafting a document, it is important to understand the distinction between Durable And Non Durable Power of Attorney.
Concept of Power of the attorney
When you cannot make a decision for yourself or a person whom you hire or provide the power to act on your behalf, this is called an attorney. A power of attorney document allows someone to make legal and financial decisions for you if you are unable to do so.
In other words, a power of the attorney is an essential and legal document in which a person appoints another person to act on their behalf of them to take proper decisions for their work. The person who got authority is known as an attorney, whereas the person who provided the authority (subject) is the principal.
The agent may be provided with limited or multiple authorities to make decisions for the principal’s investments, estate or finances, etc. When provided with multiple or wide ranges of decisions, known as a general power of attorney.
For this, we refer 3 acts:-
- Power of attorney act 1882.
- Indian contract act 1872.
- sample act.
The prior requirements for making someone’s power of attorney are as follows:-
- Firstly, we require the details of both principal (the person who is going to hire them for their work) and the attorneys (the person who is going to act on their behalf of there).
- In detail, we need the name, occupation, age, and proper address of both the persons.
- Secondly, we require a five hundred judicial stamp paper to make documents for attorneys.
The differences between a durable and non-durable power of attorney are as follows:
- Non Durable Power of attorney:
A Non Durable Power of attorney is a type of attorney that discontinues if you become incapacitated and in case of the principal’s death. This means that the agent you appointed in the document for Power of attorney will lose the authority to act on behalf of that particular principal after any related circumstances occur.
And when that happens, a court will have to appoint a conservator for you to handle your personal and business affairs. It is not useful for estate planning but can be useful in other scenarios. A non-durable power of attorney has some limited scope.
The person you have authorized can act on your behalf in legal and financial matters, which includes signing agreements, approving payments, and more.
- Durable Power of the Attorney :
A Durable Power of Attorney is a type of attorney that generally includes a financial or general power of attorney. And in this power of attorney, the principal has clarified that a power of attorney will continue.
Even if the principal is incapacitated, this will discontinue after the principal’s death. It is effective no matter what is the physical or mental condition of the principal. Sometimes durable of attorney is also known as a healthcare power of attorney.
According to this agent is provided with the power to make decisions for principles related to medical care. A durable power of attorney can be created by including a specific statement in the document to make it.
The sub-types of durable powers of attorney-
a. Financial Power of Attorney.
b. Medical Power of Attorney.
Above we will discuss the durable vs non durable POA. But, if your power of attorney is not a durable type, your power of attorney is useless whenever it is needed most. But the durable power of attorney will continue even when the principal is incapacitated.