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 Tennessee, a durable power of attorney (DPOA) 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 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 from a stroke or Alzheimer's disease. Tennessee law recognizes the importance of DPOAs and provides statutory forms that can be used to create a DPOA. These forms are designed to meet the state's legal requirements and ensure that the DPOA is effective and durable, even upon the incapacitation of the principal. It is important for individuals to execute a DPOA in accordance with Tennessee laws to ensure that their financial matters are managed according to their wishes, should they become unable to do so themselves.