A durable power of attorney is a legal document that a person (the principal, grantor, or donor) signs to appoint another person as the grantor’s agent or attorney-in-fact—with authority to make financial and property-related decisions on behalf of the principal—including transactions involving business interests, investments, insurance, taxes, bills, real estate, stocks, bonds, commodities, personal property, Social Security, Medicare, Medicaid, and other financial matters.

A traditional power of attorney is effective only while the principal has full mental capacity, but a durable power of attorney remains effective if the principal becomes physically or mentally disabled or incapacitated (incompetent) from a stroke, Alzheimer’s disease, an automobile accident, or other cause. In some states the legislature has provided a form durable power of attorney in a statute (law) and the document may be referred to as a statutory durable power of attorney.

In Illinois, a durable power of attorney is a legal instrument that allows an individual (the principal) to designate another person (the agent or attorney-in-fact) to make decisions regarding their finances and property in the event that the principal is unable to do so themselves due to incapacity. This includes handling matters such as business interests, investments, insurance, taxes, and real estate transactions. Unlike a traditional power of attorney, which loses its validity if the principal becomes incapacitated, a durable power of attorney remains in effect during the principal's incapacity. Illinois law provides statutory forms for creating a durable power of attorney, which can be found in the Illinois Power of Attorney Act (755 ILCS 45/). It is important for the document to be completed in accordance with state law, including proper execution and witnessing, to ensure its validity. Individuals are encouraged to consult with an attorney to tailor the power of attorney to their specific needs and to ensure all legal requirements are met.