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Discretionary Power of Attorney

The Discretionary Power of Attorney document allows a selected individual to make financial and legal decisions on behalf of the grantor.

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Service Description

A Discretionary Power of Attorney (DPOA) is a legal document that gives someone the authority to make decisions on behalf of another person. The person who grants the authority is referred to as the principal, and the person who receives the authority is referred to as the agent. Unlike a regular power of attorney, a DPOA gives the agent broad discretion to make decisions on behalf of the principal without the need for constant supervision.

DPOAs are often used in situations where the principal is unable to make decisions due to physical or mental incapacity. For example, if an elderly person develops dementia, they may grant a DPOA to a trusted family member or friend who can make decisions regarding their healthcare, finances, and other important matters.

It is important to note that a DPOA is a legal document that should be drafted with the assistance of an attorney. The document should clearly outline the scope of the agent’s authority, as well as any limitations or conditions placed on that authority. The agent should also be someone who the principal trusts implicitly, as they will be making decisions that could have a significant impact on the principal’s life.

A DPOA should also specify when it becomes effective. In some cases, the document may become effective immediately, while in other cases, it may only become effective if the principal becomes incapacitated. This ensures that the agent does not have the authority to make decisions until it is necessary.

Another important consideration when drafting a DPOA is choosing a successor agent. This is someone who can step in and assume the responsibilities of the agent if they are unable to continue. The successor agent should be someone who is capable of making decisions on behalf of the principal and who the principal trusts.

In conclusion, a Discretionary Power of Attorney is a legal document that grants someone the authority to make decisions on behalf of another person. It is an important tool that can be used to ensure that the principal’s wishes are carried out even if they are unable to make decisions themselves. When drafting a DPOA, it is important to work with an attorney to ensure that the document is legally valid and clearly outlines the agent’s authority and responsibilities.

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