Financial Word of the Day: Durable Power of Attorney

Larry Jones
Jun 26, 2025
2 min read

Updated: Sep 26, 2025

Definition of Durable Power of Attorney

A Durable Power of Attorney (DPOA) is a legal document that gives someone else (your "agent" or "attorney-in-fact") the authority to act on your behalf if you become mentally or physically unable to handle your own affairs. The word “durable” means it stays in effect even if you become incapacitated.

There are two main types:

Durable Power of Attorney for Finances
Durable Power of Attorney for Health Care (also known as a Health Care Proxy or Advance Directive)

For this post, we’re focusing on the financial side of the Durable Power of Attorney.

Why It Matters

Think of a Durable Power of Attorney like financial insurance for your brain. If you get in an accident, have a stroke, develop dementia, or just need someone to step in during a medical emergency—you want a trusted person to be able to pay your bills, manage investments, file your taxes, or even sell property on your behalf.

If you don’t have this document in place and something unexpected happens, your loved ones could be stuck going through a lengthy and expensive court process just to manage your money for you.

That’s not a legacy. That’s a mess.

In Real Life

Let’s say your name is Chris, and you’re 57, healthy, and handling your own finances just fine. You’ve got retirement accounts, some rental property, and a decent savings cushion. Then, you’re in a car accident and unconscious for several weeks.

Because you had a Durable Power of Attorney in place, your adult daughter—your named agent—can now access your bank account, talk to your mortgage lender, and make decisions about the rental property without having to get court approval.

She keeps your financial flywheel turning, even while you’re out of commission. That’s the power of being prepared.

Pro Tip

Don’t confuse this with a general Power of Attorney, which becomes invalid if you become incapacitated. The durable part is what keeps this document alive and active when you’re not able to act for yourself.

How to Get One

You can get a Durable Power of Attorney drawn up by an estate planning attorney (recommended for complex finances), or use your state’s standard form (if available) to keep it simple. Just make sure it's notarized and stored somewhere safe but accessible.

And yes, you can update or revoke it anytime—as long as you're still of sound mind.

Use It in a Sentence

“We sat down with our financial advisor and created a Durable Power of Attorney so our son could step in if anything ever happens to us. Peace of mind is worth a signature.”

Bottom Line

You don’t have to be old or sick to create a Durable Power of Attorney. You just have to be wise enough to know that life happens. Empower someone you trust now—so they can protect you and your finances later.

Let’s call it a small decision today… that could save your entire financial future tomorrow.