A durable power of attorney (DPOA) is a legal document that allows you to appoint an agent to make decisions on your behalf if you become incapacitated or unable to make decisions for yourself.
In Texas, there are specific requirements and guidelines for creating a DPOA that must be followed for the document to be valid. It is important to know the steps for creating a durable power of attorney in Texas, including the requirements for the document, the powers that can be granted to the agent, and the potential risks and benefits of having a DPOA in place.
We will provide some tips on how to choose the right agent and what to consider when creating a DPOA.
Requirements for a Durable Power of Attorney in Texas
According to Texas law, a durable power of attorney must meet certain requirements to be valid. These requirements include:
- The document must be in writing and signed by the person creating the DPOA (the “principal”).
- The document must be signed by two witnesses.
- The document must be notarized.
It is important to note that the principal must be competent at the time the DPOA is executed. This means that the principal must have the ability to understand the nature and consequences of creating a DPOA. Additionally, Texas law requires that the document include a statement that it is a durable power of attorney and that it will not be affected by the principal’s subsequent incapacity.
Powers That Can Be Granted to the Agent
In Texas, a durable power of attorney can grant the agent broad powers to make decisions on the principal’s behalf. These powers can include:
- Financial decisions, such as managing bank accounts, paying bills, and investing money.
- Real estate decisions, such as buying and selling property.
- Medical decisions, such as consenting to medical treatment and making end-of-life decisions.
- Business decisions, such as managing and running a business.
- Legal matters, such as filing lawsuits and signing legal documents.
It is important to note that the powers granted to the agent must be specifically outlined in the DPOA. The document should be clear and specific in describing the powers being granted to the agent.
Choosing the Right Agent
Choosing the right agent is one of the most important decisions when creating a DPOA. The agent should be someone you trust and have confidence in and who is capable of making decisions in your best interests. When choosing an agent, consider the following:
- Relationship: The agent could be someone who you have a close relationship with, such as a family member or a close friend.
- Trustworthiness: The agent should be trustworthy and responsible.
- Ability to make decisions: The agent should be capable of making sound and informed decisions.
- Availability: The agent should be available and able to act on your behalf when necessary.
It is also important to consider the possibility that an agent may be unable to act on your behalf in the future. In such cases, you may want to appoint a successor agent to take over in the event of the incapacity or unavailability of the primary agent.
Risks and Benefits of a Durable Power of Attorney
While a durable power of attorney can provide peace of mind and security for the principal, it is important to know the potential risks and benefits of having one in place.
Benefits:
- A DPOA can provide a sense of security for the principal, knowing that someone they trust will be able to make decisions on their behalf if they become incapacitated.
- A DPOA can avoid the need for court-appointed guardianship or conservatorship if the principal becomes incapacitated. This can save time, money, and the need to go through a long legal process.
- A DPOA can allow the agent to handle financial and legal matters on the principal’s behalf, which can save the principal from having to handle these matters themselves.
- A DPOA can also provide peace of mind for the principal’s loved ones, knowing that the principal’s affairs will be taken care of in the event of their incapacitation.
Risks:
- The principal is giving up a significant amount of control over their own affairs by granting an agent the power to make decisions on their behalf.
- If the principal chooses the wrong agent, or if the agent abuses their power, the principal’s assets and interests may be at risk.
- If the DPOA is not properly drafted or executed, it may be challenged in court and found to be invalid.
Because of these reasons, many people choose an institutional agent. Institutional agents manage resources for many clients and will do everything in their power not to tarnish their name and image.
You might want to choose this option if you don’t know anyone trustworthy, responsible, and able to make decisions that are in your best interests.
What to Consider When Creating a Texas DPOA
When creating a Texas durable power of attorney, there are several important factors to consider:
- Specific powers: Consider what specific powers you want to grant to the agent, and make sure to include them in the DPOA.
- Duration of the DPOA: Consider whether you want the DPOA to be effective immediately or only in the event of your incapacity.
- Limitations: Consider whether you want to include any limitations or restrictions on the agent’s powers.
- Review: Review the DPOA regularly to ensure that it still meets your needs and that the agent is still the right person for the job.
Speak to Us at the Kazi Law Firm
If you are considering creating a durable power of attorney in Texas, it is imperative that you seek the assistance of a qualified attorney. A lawyer can help you understand the latest legal requirements for a DPOA in Texas and can help you draft a document that meets those requirements and protects your interests.
At the Kazi Law Firm, we have experience helping clients create effective and legally valid durable power of attorney documents. We understand the importance of protecting our client’s interests and would be happy to assist you with creating a DPOA that meets your needs.
If you have any questions or want to schedule a consultation to discuss creating a durable power of attorney in Texas, do not hesitate to contact our law firm. We are here to help guide you through the process and ensure that your interests are protected.
