A durable power of attorney is a designation that is given to someone in order to handle financial transactions if another person becomes incapacitated and can't make decisions on their own.
Why It's Important
This is one of the main documents needed when you start thinking about estate planning. It is important to have a person in place as a durable power of attorney in case an accident happens tomorrow. Who could you trust to take over your financial matters?
What is the difference between a durable power of attorney and a general power of attorney? With a durable power of attorney, the document remains in effect if you are unable to think for yourself. With a general power of attorney, it is only in effect while you are alive and competent. If you have a general power of attorney, once you become incompetent, it loses its enforcement.
I highly recommend going for a durable power of attorney from the beginning so you don't have to worry about it!