Texas Durable Power of Attorney
A Texas Durable Power of Attorney is an instrument that allows an agent to perform certain actions on behalf of another person, usually called the principal. A Texas Durable Power of Attorney is usually prepared in relation to a person’s broader estate planning, which includes a Last Will and Testament, Revocable Living Trust, Durable Power of Attorney, Medical Power of Attorney, Directive to Physicians, and other ancillary documents, all of which are usually prepared by a Texas estate planning attorney. However, the Texas Durable Power of Attorney may also be executed without the other documents.
The Texas Durable Power of Attorney may generally provide the agent with power to act on the principal’s behalf for transactions involving real property; personal property; stocks and bonds; banking and other financial institutions; insurance and annuities; estates, trusts, and other beneficiary transactions; claims and litigation; personal and family maintenance; benefits from social security, Medicare, and Medicaid, or other governmental programs; retirement plans; and tax matters.
The Texas estate planning attorney is usually the person preparing the Texas Durable Power of Attorney. It is important that a principal considers naming successor agents if the first agent cannot perform due to death, disability, or incapacity.
It is important to note that a principal may choose to limit the powers granted by a Durable Power of Attorney however s/he wishes. Further, many title companies and lending institutions require a Texas Special Power of Attorney to handle real estate transactions. Finally, a Texas estate planning attorney should prepare a Texas Medical Power of Attorney if the principal desires to name an agent to act in his/her stead for health care decisions.
The principal under a Texas Durable Power of Attorney may provide the agent to make gifts to the principal’s descendants up to the annual taxable exclusion.
When preparing the Texas Durable Power of Attorney, it is important to consider when the principal desires for the agent to have the powers granted thereunder. The principal may choose that the powers granted to the agent to become effective upon signing. However, many Texas estate planning attorneys prepare springing Texas Durable Power of Attorneys. For springing Durable POA’s, the agent only has the power to act after a certain date or event. For Texas estate planning purposes, the triggering event is usually the disability or incapacity of the principal.
A Texas Durable Power of Attorney will expire upon the earliest to occur of (i) the death of the principal; (ii) a stated dated; and (iii) revocation by the principal. It is important to note that the principal’s death always terminates the Texas durable POA. Powers of attorney are only effective during the life of the principal. After the principal’s death, then an executor must be appointed to handle the estate of the principal. Executor’s are often named in the principal (testator’s) Last Will and Testament, which, again, is why the Texas Durable Power of Attorney is prepared during broader estate planning by a Texas estate planning attorney.
The Law Office of Robert Newton, PC is a law firm located in Frisco, Texas, that practices in the area of estate planning, real estate, and business. Please feel free to contact the firm for a consultation. The above information was provided for information purposes only and not as legal advice.
