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Elder Law with Kane & Crowell Attorney

Durable Financial Power of Attorney

A Durable Financial Power of Attorney (DFPOA) is a legal document granting one person (the “agent”) the authority to manage the financial affairs of another person (the “principal”). This authority continues even if the principal becomes incapacitated, hence the term “durable.” State law governs the Durable Financial POA in Tennessee, as specifically outlined in the Tennessee Uniform Durable Power of Attorney Act.

Key Features of a Durable Financial Power of Attorney

  1. Durability: Unlike a regular power of attorney, a durable POA remains effective even if you become mentally or physically incapacitated. This feature ensures continuous management of your financial matters without court intervention.
  2. Scope of Authority: You can grant broad or limited powers to your agent. This can include managing bank accounts, paying bills, buying or selling property, handling investments, and filing taxes. Therefore, the exact powers must be clearly outlined in the document.
  3. Agent’s Responsibilities: The agent has a fiduciary duty to act in your best interest, maintain accurate records, avoid conflicts of interest, and act within the authority granted by the POA. Misuse of power can result in legal consequences.

We Can Help You Create a Durable Financial POA, Giving You Peace of Mind

  1. Drafting the Document: We will draft the POA in writing and clearly state that the agent’s authority will continue if you become incapacitated.
  2. Signing Requirements: We will have you sign the POA in the presence of a notary public. If you cannot sign, another individual can sign on your behalf before a notary.
  3. Choosing an Agent: A trustworthy and competent agent is crucial, as they will have significant control over your financial matters. Many choose close family members or trusted friends.
  4. Notification and Acceptance: Although Tennessee law does not require it, informing the agent of their appointment is recommended to ensure they are willing to take on the responsibility.

Revoking or Amending a Durable Financial POA

Should things change after your Durable Financial POA is in place, we can help revoke or amend your documents. As the principal, you can revoke or amend the POA anytime, provided you are mentally competent. You must do this in writing, and it is advisable to notify the agent and any institutions or individuals aware of the POA. As the principal, you can revoke or amend your documents anytime, provided you are mentally competent.

Termination of a Durable Financial POA

A Durable Financial POA terminates for the principal’s death upon revocation by the principal or by a court order. Additionally, if the agent is a spouse, the POA may terminate upon divorce unless stated otherwise in the document.

Importance of a Durable Financial POA

A Durable Financial POA is essential for estate planning and financial management. We are here to help ensure your financial matters are handled smoothly and without interruption if you become incapacitated. Accurate legal documents can prevent the need for a court-appointed conservatorship, which can be time-consuming, costly, and intrusive.

Protect Your Financial Interests

A Durable Financial Power of Attorney in Tennessee provides a robust framework for managing financial affairs in case of incapacity. You can ensure your financial interests are protected and managed according to your wishes by carefully drafting the document, choosing a reliable agent, and understanding the legal requirements.

We Are Experienced Attorneys in Lebanon, TN, Ready to Serve You

Contact Kane & Crowell, PLLC, with your questions about Durable Financial Power of Attorney. With five full-time attorneys, five paralegals, and other support staff, someone is always available to speak with you. Call us today at (615) 784-4800.