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 Washington State, 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 and property affairs. This includes handling business interests, investments, insurance, taxes, bills, real estate, and other financial matters. Unlike a traditional power of attorney, a DPOA remains in effect even if the principal becomes incapacitated due to physical or mental disability. Washington law provides specific provisions for the creation and use of a DPOA, which must comply with state requirements to be valid. The document must be signed by the principal, witnessed by two individuals who are not named as agents in the DPOA, and it must include specific language stating that the power of attorney shall not be affected by the principal's subsequent incapacity. It is important for individuals to ensure that their DPOA is properly executed in accordance with Washington law to ensure that it will be effective when needed.