In part one of this series, we looked at the two basic types of power of attorney, the general and limited POAs – and examined the pros and cons of each. In this presentation, we’ll go beyond that and examine the advantages and disadvantages of the Durable Power of Attorney. Learn more about durable power of attorney in this presentation.

1. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
POWER OF ATTORNEY: PROS
AND CONS (PART 2 OF 2)

2. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
In part one of this series, we looked at the two basic
types of power of attorney, the general and limited
POAs – and examined the pros and cons of each.

3. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
In this presentation, we’ll go beyond that
and examine the advantages and
disadvantages of the Durable Power of
Attorney.

4. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
A durable power of attorney grants your chosen
attorney-in-fact the ability to act in your stead in all
matters outlined in the empowering document.

5. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
You can make those powers broad or
limited, much as you would with the
general or limited power of attorney.
With the durable power of attorney,

6. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
however, the power to act is present
as soon as the document is
executed, and can continue even if
you are incapacitated. This offers
many advantages, and a few
disadvantages as well.

7. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
If you lost mental capacity tomorrow, who would manage your
finances to ensure that your family, business, and other
important concerns were properly cared for?

8. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
Without a POA, it would be up to a
court to appoint a conservator to
manage your affairs.

9. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
Conservatorships can be expensive, time-
consuming, and stressful.

10. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
The durable power of attorney
provides a less expensive solution
that avoids those costs and enables
your family to avoid delays that
might force their financial needs to
go unmet.

11. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
You can not only name your attorney-in-fact, but you
can also provide that agent with as much or as little
power as you desire, to accomplish your specific goals.

12. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
That can enable you to craft a POA
that perfectly meets your unique
needs.

13. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
Because your POA is not subject to court
supervision, you can keep your finances and
other personal information out of the public eye.

14. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
That’s not true with a
conservatorship, since conservators
must be publicly accountable for
their actions and often need court
approval for certain actions.

15. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
There are some third-parties such as the IRS that
have very specific POA requirements.

16. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
You should consult with an attorney
to ensure that your documents will
meet all your needs.

17. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
No matter how trustworthy you might believe your
attorney-in-fact to be, he or she could still act
inappropriately.

18. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
It is difficult to prevent that abuse
with the terms of the POA, since any
limitations need to be carefully
crafted to avoid denying the agent
power that you need him or her to
exercise.

19. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
When attorneys-in-fact misuse their power, there
is no immediate check on their actions.

20. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
Since no court oversees the agent’s
activities, families typically don’t
learn about serious abuses right
away.

21. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
Often, misuse of assets is not
discovered until large portions of an
estate have been squandered.

22. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
Again, without any formal oversight, agents can
sometimes make mistakes that can come at great
cost.

23. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
Your family could request a court
hearing to force the agent to
account for his or her actions, but
by then it may be too late to recover
from the most serious lapses in
judgment.

24. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100

25. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
At Frank & Kraft, Attorneys at Law,
out estate planning and elder law
experts are here to guide you
through all the power of attorney
pros and cons and help you make
the right decision for your incapacity
planning needs.

26. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100
To learn more about how the POA
could help you, contact us online or
call (317) 684-1100 today!

27. 135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485
Phone: (317) 684-1100