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 New Jersey, 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 and make decisions regarding their property. This authority can include handling business matters, investments, insurance, taxes, and real estate transactions, among other financial activities. Unlike a traditional power of attorney, which loses its validity if the principal becomes incapacitated, a DPOA remains in effect even if the principal suffers from a physical or mental disability, such as a stroke or Alzheimer’s disease. New Jersey law recognizes the importance of these documents and provides specific provisions under the New Jersey Statutes Annotated (N.J.S.A.) to ensure their proper execution and durability. It is important for the DPOA to be drafted in compliance with New Jersey laws to ensure that it is recognized and effective when needed. Individuals are encouraged to consult with an attorney to create a DPOA that accurately reflects their wishes and complies with state law.