A durable power of attorney (DPOA) that takes effect immediately is a vital estate planning tool that grants someone legal authority to act on your behalf while you’re still alive. Unlike a springing power of attorney that only activates upon incapacity, an immediate DPOA becomes effective as soon as you sign it.

Key Features

An immediate DPOA allows your chosen agent (attorney-in-fact) to manage your affairs even while you’re competent but may need some assistance. The expectation is that your trusted agent will not take over your decision making unless you really need the help. The “durable” designation means it remains valid if you become incapacitated, unlike a regular power of attorney which terminates upon incapacity.

Your agent can handle various matters including:

• Financial decisions and transactions
• Estate Planning
• Sign Contracts
• Property management
• Business operations
• Healthcare decisions (if specifically included)
• Tax and insurance matters
• Legal proceedings

Benefits of Immediate Effect

1. Seamless transition of authority if you become incapacitated
2. No need to prove incapacity before the agent can act
3. Ability to assist with day-to-day matters while you’re healthy
4. Reduced risk of gaps in management of your affairs
5. Avoid any delay with asset protection

Important Considerations

Agent Selection

Choose someone trustworthy, reliable, and financially competent. Consider naming alternate agents in case your primary agent becomes unavailable.

Creating the Document

1. Work with an elder law attorney to draft the document
2. Ensure all required powers are specifically identified
3. Include clear language about immediate effect
4. Have it properly executed according to state law
5. Provide copies to relevant parties (banks, investment firms, etc.)

Maintaining the DPOA

• Review the document periodically
• Update if circumstances change
• Ensure your agent has current copies
• Keep the original in a secure but accessible location
• Inform key people where to find it

Termination

A durable power of attorney ends upon:

• Your death
• Your revocation of the document
• Court invalidation
• Resignation of your agent
• Divorce (if your spouse is the agent, in many states)

Conclusion

An immediate DPOA is a powerful tool for ensuring continuous management of your affairs. While it grants significant authority to your agent immediately, proper drafting can include safeguards to protect your interests while maintaining the flexibility needed for effective asset management.

Founded by a nurse attorney and with offices in Acton, Andover, and Sudbury, Massachusetts, Generations Law Group helps families navigate the complex areas of estate planning and elder law to inform and protect loved ones of every generation.

 

 

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