Advantages And Drawbacks Of A Durable Power Of Attorney

In Florida, a durable power of attorney is an important estate planning tool. This legal document will allow you, as the principal, to designate another person, who will become your agent, to manage your legal and financial affairs in the event that you cannot manage them on your own. While these legal documents are largely beneficial, they have some drawbacks, as well. Below, our St. Petersburg advance directive lawyer outlines what these are.

Advantages of a Durable Power of Attorney 

Creating a durable power of attorney has many benefits. These include:

• Cost-effectiveness: Establishing a durable power of attorney is fairly straightforward. It is also inexpensive, particularly when compared with the cost of going to court if there are disputes or a need to appoint a conservator in the event of incapacitation.
• Retain decision-making power: First, you have the control to appoint whom you’d like to be your power of attorney. Second, you have the ability to control the authority given to your and provide him or her on how to act in your best interests.
• Flexibility: You can customize your durable power of attorney to include specific or general powers, even if you are not incapacitated. For example, you may have a rental property but need to leave the country for a period of time. Your durable power of attorney can handle the collection of rent and other tasks while you are away.
• Accountability: You can hold your durable power of attorney accountable by including certain provisions within the document, such as that they provide accounting or that they are bonded.

Drawbacks of a Durable Power of Attorney 

While a durable power of attorney has many benefits, there are also some drawbacks. These are as follows:

• Potential for abuse: The potential for abuse is one of the biggest drawbacks of a durable power of attorney, which is why it is important to pick a person you trust. The individual you designated could cause financial loss if they misuse their power. Additionally, there is no court oversight, which is a benefit but also means there is no automatic oversight that can prevent abuse.
• Acceptance challenges: If your financial institution believes the durable power of attorney is invalid or outdated, they may not accept it. This brings a layer of uncertainty with these legal documents.
• Ineffective upon death: A durable power of attorney will only outline who has the authority to make decisions on your behalf during your lifetime. If you pass away, they are no longer effective. As such, they do not replace a will or trust.

Our Advance Directive Lawyer in St. Petersburg Can Help with Your Durable Power of Attorney 

Due to the fact that there are some disadvantages that can come with a durable power of attorney, it is critical that you work with a St. Petersburg advance directive lawyer who can help you avoid them. At Legacy Protection Lawyers, LLP, our experienced attorneys can draft your power of attorney to ensure it provides the intended protection in the event that you ever need it. Call us today at 727-471-5868 or contact us online to schedule a consultation and to get more information.

Source:

flsenate.gov/laws/statutes/2010/709.08