As we all know, life is unpredictable and can take unexpected turns at any moment. In such situations, it is important to have a plan in place to ensure that our affairs are taken care of and our loved ones are looked after. One way to do this is by creating a durable power of attorney. And if you’re a resident of Texas, you’re in luck! The state has its own set of laws and regulations with regards to durable power of attorney. Let’s start by defining what a durable power of attorney is. In simple terms, it is a legal document that grants an individual (referred to as the “agent” or “attorney-in-fact”) the power to make decisions on behalf of another individual (referred to as the “principal”). The scope of the agent’s authority can be as broad or limited as the principal wishes. The purpose of a durable power of attorney is to ensure that important financial and healthcare decisions can be made on the principal’s behalf, especially if they become unable to make those decisions for themselves. In Texas, there are two types of durable power of attorney: financial and healthcare. Let’s take a closer look at each one. Financial Durable Power of Attorney A financial durable power of attorney grants an individual the power to make financial decisions on behalf of the principal. These decisions can include managing bank accounts, paying bills, and managing investments. It’s important to note that the agent’s authority can only extend to the assets and property that the principal owns at the time the power of attorney is created. One key aspect of a financial durable power of attorney in Texas is that it has to be “durable.” This means that the agent’s authority remains in effect even if the principal becomes incapacitated. However, the power to sell or give away the principal’s property is subject to certain limitations, such as requirements for court approval. Healthcare Durable Power of Attorney A healthcare durable power of attorney grants an individual the power to make medical decisions on behalf of the principal. These decisions can include consenting to or refusing medical treatment, authorizing or refusing life-sustaining treatment, and deciding where the principal will receive care. It’s important to note that a healthcare durable power of attorney can only take effect if the principal is unable to make these decisions for themselves. For example, if the principal is unconscious or mentally incapacitated due to an illness or injury. In both types of durable power of attorney, the principal must be an adult (18 years or older) and have the capacity to understand the document they are signing. It’s also important to choose an agent that the principal trusts and who is capable of carrying out the responsibilities outlined in the document. Creating a Durable Power of Attorney in Texas Now that we’ve covered the basics of durable power of attorney in Texas, let’s talk about how to create one. While it’s possible to use a form from an online source, such as the one linked in the data above, it’s important to ensure that the document complies with Texas state laws and regulations. It’s highly recommended to seek the advice of an attorney who specializes in estate planning to assist in the drafting and execution of the document. Once the document has been created and signed, it’s important to store it in a safe place where it can be easily accessed if needed. The agent should also be given a copy of the document and informed of their responsibilities. In conclusion, creating a durable power of attorney is an important step in ensuring that your affairs are taken care of and your loved ones are looked after. If you’re a resident of Texas, it’s important to understand the state’s specific laws and regulations with regards to durable power of attorney. With the help of an attorney, you can create a document that fits your specific needs and provides peace of mind for you and your family.
