Durable Power of Attorney
You'll recall from Chapter 2 that a power of attorney authorizes one person (the agent) to act on behalf of another (the principal) while the principal is alive. By executing a durable power while you are competent, you can name someone to handle your financial affairs should you become incapacitated. Durable powers are popular because they can serve as relatively inexpensive "insurance" against incapacity.
Why You Need a Durable Power of Attorney
You may be asking, "Do I really need a durable power of attorney?" Try asking yourself some more questions.
Do you get checks made out to you? If you became incapacitated, no one could cash them without creating a guardianship.
Do you own assets ... including property owned with someone else ... that would require your signature to sell? If you became incapacitated, no one could sell them without creating a guardianship.