Why Have a Durable General Power of Attorney?
What is the probability that sometime in your life that there will be a time when you cannot manage your financial affairs? Does that risk go up or down as we age? Suppose you had an accident or a medical event that left you unconscious or unable to act? Ask yourself these questions: Who is going to pay your bills? Who has the right to access your bank accounts? Who has the ability to sign and deposit your checks? Who will handle your mail? Who will run your business? Who can manage or sell your assets, if needed?
When (not if) you experience such an event, there will be questions that must be answered. The more answers you give in advance while you are able the lower the cost to you, both financially and emotionally. The price you pay to answer these questions is up to you.
The Price of Inaction.
The legal tool for you to answer these question in advance so that they don't become a problem latter is called a "Durable General Power of Attorney" ("DGPA"). In a DGPA you designate "decision makers" called "agents" to act on your behalf if for any reason you are unable to do so.
If you don't have a DGPA when the need arises, the price you pay is very high, financially and emotionally. 
Your children must go to court and appear before a judge in a complicated legal proceeding to have a guardian and conservator appointed to act for you. This means your estate will pay for a court appointed doctor, court appointed investigators, another lawyer, appraisers, and other professionals. They may have to have you officially declared to be incompetent. Your spouse and/or children will be forced to post an expensive bond based on the value of your estate. After the guardian and conservator are appointed, they must go to court to get approval for all sales of property and other transactions. Then they must file an annual report with the court. The list goes on and on.
Reduced Cost. The DGPA keeps the financial and emotional price of answering these questions to a minimum. This is because you answer the questions that will arise, not the courts. It enables you, the principal, to give a trusted person, your agent, the power to conduct your affairs if you are incapacitated, missing, or away from home.
All Durable General Powers of Attorney Are Not Equal.
It is important to know that all DGPA̓s are not the same. Many are limited in their scope and depth. There are times when such limitations may be appropriate. For general purposes such as this, it is better for the document to cover as many situations as possible. The courts are reluctant to imply the powers to act in situations not anticipated. That is why the quality and completeness of the document provisions are so important.
Notes and Concerns. You should note that your DGPA authorizes the persons you have selected to make legal and financial decisions concerning your property. Your DGPA includes the power to continue making gifts under your gift exclusions, including to your agent. There is a mechanism to prevent abuse, which is discussed below. Your DGPA is not affected by your disability or incapacity, and will still be effective in such events. Technically a lapse of time alone will not impair the effectiveness of your DGPA. However, it has been our experience that it is in your best interest to up-date them about every five years or sooner as your wishes or circumstances change. Your DGPA terminates when you die. It is only effective while you are living. You have the right to revoke and up-date your DGPA at any time. Your agent may be entitled to reasonable compensation for rendering services on your behalf.
DGPA Features and Advantages.
Your DGPA has many features and advantages including:
1. Appoint your agent and back-up agents so that further eventualities, such as divorce or the death of an agent, will not interfere with the ability of this document to achieve the results you want.
2. Ensure that your intent is clear and prevent a judge from limiting the powers of your agent at a later date. This is because it contains a detailed description of each power, in addition to the general description of the agent's broad powers.
3. Prevent incapacity from interfering with your program of gifting to family and charities. This maintains your ability to maximize all available tax benefits.
4. Remove the stringent investment requirements imposed on your agent, giving the agent the ability do what they think is best, not just what provides the best return.
5. Provide a system so the agent may be paid for their services with documentation and get reimbursement for any expenses paid by them on your behalf.
6. Grant your agent the power to disclaim gifts and inheritances when necessary to maximize tax benefits or achieve other goals on your behalf. 
7. Give your agent the ability to make transfers to trusts, which maintains the flexibility required to maximize the tax and non-tax benefits of your estate plan.
8. Protect those who deal with your agent from liability, thus making it easier for the agent to act for you.
9. Remain valid in all fifty states and outside the country, so when you travel or move you are protected.
10. Eliminates the need for expensive conservatorship proceedings if you are incapacitated when used with a trust, in all but a few instances.
11. This document is so powerful that precautions must be taken to reduce the chance of misuse.
12. First, you must select only people you trust completely to act as your agents.
13. Second, you must keep the document in a safe place. It is effective immediately even though you won't use it right away. It is recommended that the original be kept in the fireproof safe in your attorney's office until your attorney receives (1) written statements from three doctors that you are unable to act for yourself, (2) evidence that you are missing, (3) written instructions from you to release to it, or (4) your attorney makes an independent determination that you are in fact incapacitated. This arrangement lets you keep control of your affairs, while maintaining the ability to act quickly in time of emergency.
14. Lastly, you need a system for canceling the DGPA. Not having one is like creating a monster without having a gun to kill it. Your DGPA spells out how it may be revoked.
15. The DGPA gives you the peace of mind that comes with knowing that you have saved time, money and aggravation for your yourself and your family. But the greatest rewards come from having the complete legal protection that comes with having all the documents in this estate notebook.
Durable General Power of Attorney