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 Mexico, 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 manage their financial and property affairs. This authority can include handling business matters, investments, insurance, taxes, and real estate transactions, among others. Unlike a traditional power of attorney, which loses its validity if the principal loses mental capacity, a durable power of attorney in New Mexico remains in effect even if the principal becomes incapacitated due to conditions like stroke, Alzheimer's disease, or injury. New Mexico law provides for the creation of a durable power of attorney and may include statutory forms that can be used to ensure the document's validity. It is important for the principal to clearly specify in the document the extent of powers granted to the attorney-in-fact, and the conditions under which the durable power of attorney becomes effective. As with any legal document, it is advisable to consult with an attorney to ensure that the durable power of attorney meets all legal requirements and accurately reflects the principal's wishes.