Durable Power Of Attorney
Wednesday, June 17, 2009
A Power of Attorney is an "Agency" document, authorizing another person to "stand in your shoes" and legally do things you can do, on your behalf. The person giving the power of attorney is known as the "Principal" and the person acting, the "Agent." Under the English Common Law, such powers were no longer effective if the Agent learned of the Principal's incapacity.
Obviously, this would have limited usefulness in the Estate Planning context and so state legislatures have created the statutory concept of durability, meaning that the Agent may continue to act on behalf of the Principal even after the Principal is incapacitated. In order for a Power of Attorney in Michigan to be "durable" the documents must contain words to that effect.
Because the statutory concept of durability is in derogation of common law, our courts have given very limited interpretation of the powers in durable powers of attorney.
The practical meaning of this is that Durable Powers of Attorney must contain specific, detailed enumeration of powers in order to be effective.
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