Durable Power of Attorney
A power of attorney that remains in effect even if you become mentally incapacitated. Without the 'durable' designation, a regular power of attorney automatically ends if you become incapacitated.
Legal Definition
A power of attorney that contains language indicating the principal's intent that the authority granted shall not be affected by the principal's subsequent disability or incapacity, as authorized by statute.
Practical Example
George signs a durable power of attorney naming his daughter as his agent. Years later, George develops dementia and can no longer manage his finances. Because the power of attorney is durable, his daughter can continue to pay his bills, manage his investments, and handle his legal affairs.