Financial Durable Power of Attorney Lawyer in 
Coeur d’Alene, Idaho & Los Angeles, California 

A durable power of attorney is arguably one of the most important elements of your estate plan. With careful planning and understanding of all relevant laws, a durable financial power of attorney can provide much-needed protection for individuals who may need help managing their affairs at some point in the future.  

However, establishing a durable financial power of attorney can seem like an overwhelming and complicated task, especially if you do not know how to start and what documentation you need. Our estate planning lawyer at Moses Estate Planning, PLLC can guide you through the process of creating a durable power of attorney (DPOA) and ensure that the legal document is valid and legally enforceable. We serve clients in Coeur d’Alene, Idaho, and Los Angeles, California, as well as throughout Kootenai County.

What Is a Durable Financial Power of Attorney?  

A durable financial power of attorney (DPOA) is a legal document that grants an individual the power to act on behalf of someone else (the principal) in financial matters. It is an important document to have if you are unable to make your own financial decisions, and it can be invaluable for aging adults or those who are incapacitated or unable to manage their own affairs. 

The purpose of a durable financial power of attorney is twofold: 

• First, it allows an individual to appoint someone they trust to manage their finances in case they become incapacitated; and 

• Second, it provides clarity about what will happen with their finances in the event that they become incapacitated or unable to manage their own affairs.  

The DPOA also allows for someone else to handle day-to-day tasks such as paying bills and handling investments, as well as more complex matters such as filing taxes. 

The main difference between a durable financial power of attorney and a non-durable power of attorney is that the former remains in effect even after the principal has become incapacitated or otherwise unable to make decisions on their own behalf. A non-durable power of attorney becomes invalid once the principal is no longer able to make decisions themselves, leaving them without anyone legally authorized to act on their behalf. 

What Are the Main Factors When Choosing an Agent?  

When choosing an agent for a durable financial power of attorney, it’s important that you select someone reliable who you trust completely to manage your finances. An agent should also be familiar with how you manage your finances so that they can continue doing so accordingly.  

Additionally, communication between the principal and agent should be clear and frequent in order to ensure that everyone involved understands what’s expected and needed from each other when managing finances.  

Finally, it’s essential to understand all local laws related to DPOA before creating one. This includes understanding any state-specific rules or regulations pertaining to DPOA documents. 

Reasons a Financial POA’s Role Ends   

If you are considering creating a durable financial power of attorney, it is important to understand the circumstances in which the document may end.  

Revocation by the Principal  

The principal is able to revoke their durable power of attorney at any time for any reason. The revocation must be in writing and signed in front of a notary public. It is important to note that the agent’s authority ends after the revocation document has been received and accepted by all affected parties (which may include banks, creditors, etc.). Once revoked, a new DPOA can be created if necessary.  

Death of the Principal  

When the principal passes away, their durable power of attorney automatically terminates as part of the estate planning process. After this termination occurs, executors appointed by the principal will take over any remaining financial matters on behalf of the deceased individual. Alternatively, if no executor was appointed, then all duties associated with managing finances would be passed over to an administrator.  

Challenges From Loved Ones  

In some cases, family members or other loved ones may challenge an existing durable power of attorney due to concerns about its validity or legitimacy or if they believe that the agent is not acting in the principal’s best interests. For example, they may believe that either the agent or principal was not mentally competent when entering into the arrangement, or they may claim that fraud was involved in some way.  

How to Create Your Durable Financial Power of Attorney  

Typically, the process of creating a durable financial power of attorney includes the following steps: 

1. Choose your agent and the decisions you want them to make. The first step in creating a DPOA is selecting the individual or individuals who will be responsible for making decisions on your behalf. This person is referred to as your “agent” or “attorney-in-fact.” Your agent should be someone you trust, who understands your wishes and values, and who has the capability to make sound financial decisions. It is also critical that you decide which financial decisions you want them to make.  

2. Complete the DPOA form. Once you have selected an agent and decided which financial decisions they will be able to make for you, it is time to complete the DPOA form. This document must be completed according to the laws in your state. It should typically include information such as your name, address, the contact information of both parties involved (you and your agent), details about what types of decisions they are authorized to make on your behalf, any limitations or restrictions regarding those decisions, etc. The document should be signed according to state law.  

3. Provide copies and keep the DPOA form in a secure location. You should provide a copy of the DPOA form to all interested parties involved, including your appointed agent(s). You should also keep copies in a secure location where they can easily be accessed if needed in the future.  

Lastly, don’t forget that if any changes arise due to life events (marriage, divorce, death of the selected agent, a change of heart, etc.), then it is crucial that you update your DPOA accordingly in order for it to remain effective and reflect your wishes over time.