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 York, 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 affairs, even if the principal becomes incapacitated. This document remains effective despite the principal's physical or mental incapacity. New York has a statutory form for the Durable Power of Attorney, which is outlined in the New York General Obligations Law (GOB) Section 5-1501. The statutory form ensures that the document is recognized and can be used effectively across different institutions. It is important for the principal to choose a trustworthy agent, as the agent will have broad authority to handle the principal's financial matters, including but not limited to real estate transactions, banking, insurance, and tax matters. To be valid, the Durable Power of Attorney must be signed by the principal and notarized, and it may also require witnesses. It is advisable for individuals to consult with an attorney to ensure that the Durable Power of Attorney meets their specific needs and is executed properly.