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 North Carolina, a Durable Power of Attorney (DPOA) is a legal instrument that allows an individual, known as the principal, to designate another person, called the attorney-in-fact or agent, to manage their financial affairs. This authority can include handling business matters, investments, insurance, taxes, and real estate transactions, among other financial activities. The key feature of a DPOA is that it remains in effect even if the principal becomes incapacitated due to physical or mental illness, such as a stroke or Alzheimer's disease. North Carolina General Statutes (NCGS) Chapter 32C, the North Carolina Uniform Power of Attorney Act, governs the creation and use of DPOAs in the state. This act provides a statutory form that meets the state's requirements, but individuals may also use other forms as long as they comply with the law. It is important for the DPOA to be properly executed, which includes being signed by the principal, witnessed, and notarized to ensure its validity and durability.