What is the Difference Between Durable and General Power of Attorney?

Power of Attorney is a term that indicates that the grantor has given another person authority to act on their behalf. The person to whom the authority is given does not need to be an attorney and typically isn’t. In fact, you don’t even need an attorney to establish the POA, although a notary will be helpful. 

Powers of Attorney (POA) include several varieties. General powers apply to all of your interests and entitle the agent to represent you. This designation means your POA can sign documents on your behalf, engage in financial transactions, and buy and sell assets. A general power of attorney becomes effective when the grantor and the grantee sign the agreement and remains effective until the grantor either passes away or becomes incompetent. 

In contrast, a durable POA becomes effective when you can no longer decide independently. This POA grant remains in force until the grantor cancels it (while competent to do so) or dies. 

Also, a POA can be limited. Medical POAs are common examples of limited grants, and typically cover decisions about medical treatment for grantors who cannot make or communicate treatment decisions. Medical POAs are durable but do not activate until the grantor becomes incapacitated. General POAs may also be limited. The grantor can specify that the agent is authorized to conduct certain transactions but not others. 

Can a General POA also be Durable?

Yes, a designation of general POA can be identified as durable. In this case, the grantor is seeking to accomplish two goals: first, to have a representative who can support their interests now, and second, to have that person continue to work on their behalf in case the grantor is incapacitated.

Should I name more than one POA?

You may want more than one POA. For example, you may want a general POA to help you “be in two places at one time” if you have many business interests. This person can represent you and act at your direction (like buying and selling investments or paying bills). Typically, this agent isn’t making decisions on your behalf, but instead carrying out your wishes. In this case, the grant would likely not be durable. If you are unable to act, the general POA will terminate. 

There might be a different person you want to name as a durable POA. That person would have no power until you cannot act on your behalf. Then, depending on the specifics of the POA grant, they would transact on your behalf without your direction. 

You may also want a separate medical POA. That individual does not need the financial strengths of a general durable POA but must be able to follow your preferences as established and advocate on your behalf. Each of these has a vital purpose, but each has different responsibilities and needs distinct attributes.