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 Rhode Island, a durable power of attorney (DPOA) is a legal instrument that allows an individual, known as the principal, to designate another person, called the agent or attorney-in-fact, to manage their financial affairs and make decisions related to property, even if the principal becomes incapacitated. The authority granted through a DPOA in Rhode Island can include handling business matters, investments, insurance, tax matters, and other financial transactions. Unlike a traditional power of attorney, which loses its validity if the principal loses mental capacity, a durable power of attorney remains in effect during the principal's incapacity. Rhode Island law provides specific provisions for the creation and use of durable powers of attorney, ensuring that the document meets legal requirements to be effective. It is important for individuals to execute a DPOA in accordance with Rhode Island statutes to ensure that their financial matters can be appropriately managed in the event they are unable to do so themselves due to physical or mental disability.