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 Maryland, a durable power of attorney (POA) is a legal instrument that allows an individual (the principal) to designate another person (the agent or attorney-in-fact) to manage their financial and property affairs. This includes handling business matters, investments, insurance, taxes, and real estate transactions, among other responsibilities. Unlike a traditional POA, which loses its validity if the principal loses mental capacity, a durable POA remains in effect even if the principal becomes incapacitated due to conditions like stroke, Alzheimer's disease, or injury. Maryland law includes provisions for the creation and use of durable POAs, ensuring that they are recognized and can be relied upon even during the principal's incapacity. It is important for the document to be drafted in accordance with Maryland's legal requirements to ensure its validity and effectiveness. Individuals considering a durable POA in Maryland should consult with an attorney to ensure that the document meets all legal standards and accurately reflects their wishes.