Financial Powers of Attorney
Most people appoint family members or close friends to handle these important responsibilities. Without a financial power of attorney, if you suffer an injury or illness and become incompetent, it is likely that the Court would appoint a legal guardian to act on your behalf. This formal court process can be time consuming, costly, and uncomfortable for you and your family. You also have no control over who the Court would choose to be your legal guardian.
A springing durable Power of Attorney allows the person you have designated to use the financial power of attorney when one of two things happens.Either you lose the ability to make financial decisions (e.g. the loss of capacity to prudently manage your own financial affairs), or you give permission for your agent to act. To establish your lack of capacity to manage your financial affairs, typically one or more physicians are required to provide written certification of your incapacity. Alternatively, you may sign a written authorization in the future. In other words, your agent cannot act on your behalf until such time as a physician determines that you can no longer make your own financial decisions or you choose to activate the document yourself.